CMHC and Foreclosures

CMHC seeks to hide foreclosure information does not only protect their interests but also the interest of the properties surrounding the “foreclosed” property.

Assuming CMHC allow the property’s foreclosure status to be reflected, they will be flooded with low ball bids. Seller’s options are accept the offer as written, make a counter offer or reject the offer. CMHC however is not a normal seller. They are not in the business of holding real estate inventory. As a result they cannot just reject an offer no matter how low the offer may be. They have to accept the best offer no matter how low and liquidate any foreclosed property as soon as possible and get it of their books.

The sale of the “foreclosed” property becomes part of the pool of “competing or comparable properties” and provides a price range. Buyers, sellers and appraisers use these “comparable” as basis for their offers and valuations. So if you are a seller and the foreclosed property sold 15-20% less than if it was not declared a foreclosure you would be pissed. But you would have the option to reject a low ball offer and wait for the prices to stabilize again.

Declaring a property being sold as a foreclosure puts CMHC as a seller at disadvantage. Just like a seller who’s property that puts his property up and declare it’s going into foreclosure.

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About Ron Baylon

Realtor w/ Royal LePage Real Estate Services LTD. ~ Helping Clients Understand Real Estate Value Beyond the Obvious. Servicing North, Eastern and Central Toronto
This entry was posted in Real Estate Finance, Ron Baylon Real Estate Sales. Bookmark the permalink.

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