by Ron Neal
on Tuesday, October 15th, 2013 at 4:07pm.
Surprisingly, as it hasn’t been big in our media, the incidence of defaulting mortgages here in Victoria has been somewhat extreme over the past couple years, extreme relative to the number during the time of our rising prices and seller’s market through 2007 leading up to the global financial crisis. I don’t have an exact count, but from my own observations and speaking with lawyers specializing in the sale of foreclosed properties we have had somewhere in the range of about 60-100 monthly over the past year for just Greater Victoria. That represents somewhere between 15-20% of our sale volume by my rough estimate. That volume does seem to be on the decline now, attributable to the markets turn towards more balanced conditions over the past 6 months. I heard from a reliable source with RBC that the north island region for RBC (including all of Vancouver Island north of the Malahat) has the highest foreclosure rate in Canada currently which can be attributed to significant job losses in the resource sector of the economy.
Over the past year we have represented and sold many for various lenders and institutions as well as represented many Buyers in their acquisition. There are many unique variables that arise in trying to purchase a property “as is” in foreclosure that offset some of the benefits of the bargains often received, or at least perceived. Perhaps the biggest challenge is that in trying to plan a move when intending to make it your home. For those that seem like really good deals, as a Buyer you don’t know if you’re actually able to buy it until the Court approves it and often competing bids arise in court. Furthermore, you need to deal with your due diligence of inspections, appraisals and financing before you get in front of the judge. At the end of the day, these sales are in the group leading the market, as in competing for reluctant buyers they have driven prices down over the past couple of years.
If you are one of the many unfortunate homeowners who finds that you now owe more than your property’s current market value, your circumstances have changed and are experiencing financial pressure like many others, please call me for a free private consultation. Let’s discuss options and solutions including “Rent to Own” and also the possibilities for a “short sale” where in some cases we’ve had some success negotiating with the lender partial forgiveness of your shortfall and even paying our fees to facilitate a sale.
Finally, if you are in a position to buy, I highly recommend to BUY NOW AND HOLD with a long term outlook. There definitely are some amazing opportunities and excellent value to be found now.
The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.