Foreclosures in Alberta - Protecting Yourself
(City), AB – April __, 2009. (Local Board) and the Alberta Real Estate Association offer advice to consumers looking to pick up a deal on foreclosed properties and those who may be worried about their own property going into foreclosure.
“We are seeing more advertising now about foreclosed properties,” says (local board rep.) “It’s in the newspapers, on television and even on Facebook.”
While some ads are local, some promote purchasing properties in the U.S. and elsewhere. (Local board rep.) cautions, “The public should be aware that the regulations governing the sale of foreclosed property in Alberta are substantially different than in the U.S.
“Unlike the U.S., foreclosed properties in Alberta are sold with an appraisal report, so getting a ‘steal of a deal’ is less likely here,” says (local board rep.)
There are other considerations that should be taken into account when considering a
foreclosure purchase. “The bottom line is that foreclosure purchases come with their own set of rules. Your REALTOR® knows them and can help guide you through them,” adds (local board rep.)
“In addition to advertisements, we are also seeing more coverage of foreclosure statistics,” comments Bill Fowler, Director with the Alberta Real Estate Association who advises, “Property owners who are worried about making their payments should discuss the situation with their mortgage provider, as there may be options available that can help prevent them from losing their home.”
When asked about the statistics, Fowler explains, “We don’t have a statistic on foreclosures in Canada, but the Canadian Bankers Association tracks mortgages in arrears, where mortgage holders are behind on their payments. While not actually foreclosures, these mortgages might be considered at risk for foreclosure.”
Canadian Bankers Association latest statistics for Alberta show 2,168 mortgages in arrears at end of January 2009 or 0.45% of a total of 477,488 mortgages. This monthly figure has been as high as 0.59% to 0.68% during the 1996 – 1997 timeframe and has ranged from a low of 0.37% to 0.48% during the 1998 – 1999 period.
“The lowest statistics for mortgages in arrears in Alberta over the past 10 years were for the period just preceding this one when property prices increased rapidly. The percentage averaged 0.21% in 2006, 0.15% in 2007 and up to 0.28% in 2008,” Fowler explains.
Says Fowler, “Statistics don’t mean much if you are in danger of losing your house. Don’t become a statistic – talk to your lender.”