How Does a Court-Ordered Sale Work?

court ordered saleEvery once in a while, we are contacted by a bank to handle the sale of a property that has been handed over to the courts. This process is also known as foreclosure. There are a few reason why the sale of a home could be ordered by the court. The homeowners may have defaulted on their mortgage payments. They may be unwilling to make their mortgage payments. In this case, the bank hires a real estate broker to conduct the sale.

 

The real estate broker handles this type of sale like any other listing. They share the listing, arrange showings, and manage the sales transaction.

 

Once an offer is received on a court appointed listing and all conditions have been removed, (ie financing, appraisal, inspection etc.) a court date must be set. At this point the purchase price can and is disclosed to other potential purchasers.  Anyone can show up to court and make an offer on the property, and the initial offer can be increased should the buyer decide to do so.  The final decision on the sale of the property is decided by the appointed judge. In a court ordered sale, the bank must be able to prove to the court that the sale of the property is based on fair market value, and that the property has been adequately marketed by the real estate broker.  

 

Court-ordered sales (or foreclosures) are sold ‘as is, where is’, so it is always a good idea to consult with a Realtor on issues such as building condition, financing, and zoning. 

 

The agreed-upon sale price of a court-ordered home is considered to be public information, to ensure a fair and transparent approval process.

 

If you'd like to know more, contact us today!

Mary Martin

Mary Martin

REALTORĀ®
CENTURY 21 Kootenay Homes Inc.
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