Court of Queen’s Bench listings
Court of Queens Bench listings. With all the job losses and the mortgage deferrals, it is predicted that there will be lots of Court of Queen’s Bench listings coming up this year. In light of this let’s go over the process with you to ensure you are aware of the process and how it differs form a regular purchase.
A mortgage lender can sue a homeowner and have a judge order the property for sale to get the money they lent back. Court of Queen’s Bench listings are listed on the MLS but the seller’s name is not public, so only Realtors can see this.
However, it is possible to search by the seller’s name to get notified when new Court of Queen’s Bench listings come on the market.
A property that is listed through the courts can still have the occupant in the property when you view it. They are allowed to live there until there is an offer that is accepted by the judge.
When placing an offer on a property that is listed by the court. The lender who has sued the property owner will have a schedule. The lender will be required to attach this schedule to the offer. The schedule states that they do not claim or warranty anything in the house or the house itself.
You are buying the property as is, where it is.
That offer will have to be without conditions (ex. financing, inspection, the sale of your home…) with a certified cheque. This usually amounts to 4% of the purchase price. This means we will need to have a hard yes from your mortgage advisor that financing will go through.
Once the listing Realtor gets an offer on the property, they submit it to the court.
When the court receives it, they add it to the judge’s schedule/calendar, which is called a docket.
The process for financing is usually:
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First, a preapproval where the mortgage lender looks at you. Your income, and your credit history to make sure you are credit worthy.
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Value of the mortgage. That process can take up to 2 weeks.
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Finally, a signed a letter of commitment from your mortgage lender . This will guarantee your mortgage funds.
With Court of Queen’s Bench listings, mortgage lenders don’t have the luxury of connecting all the dots to you and the property. Without the formal offer because the order is changed with the offer being sent to the judge who will then decide if it’s a yes or no.
This is why having clear communication with your mortgage lender is extremely crucial. If your offer is accepted and then you are unable to get the financing, what happens next, is that you will forfeit of your deposit.
In the event that there is more than one offer that is to be presented to the judge on the day. The judge could let you know how much each offer is so that you have the opportunity to change your offer which can then improve your position.
Should this be the case, and with financing being so different, we always have to bring the mortgage lender in on the changes. We do this to ensure that they will still approve the mortgage for the new amount. Then it will be passed on to the judge for the courts decision.
So despite coming at a great price, Court of Queen’s Bench listings comes with some chances. Especially if you are looking to get financing and not paying cash.