As of today, on the island of Montreal there are exactly 88 properties for sale as repossessions. 10 of these properties already have accepted offers on them. Prices range from $78 500 for a small repossessed condo in Ahuntsic to $1,049 000 for a large repossessed home in Hampstead.

Are there some repossession deals out there? Yes, but not many. Just because a property has gone into foreclosure and is being sold as a repossession does not guarantee a cheap price. Once a homeowner stops making payments a bank or mortgage holder can take recourse and eventually repossess the property. The mortgage holder is responsible for selling the property at the best possible price in order to recoup the outstanding balance of the mortgage, with any profits after expenses to be divided among the secondary creditors or the previous homeowners.

Sometimes the properties will be listed at a very cheap price, but this is simply done in order to encourage a bidding war. Actually, just yesterday I came across a revenue property being sold as a repossession on Parc Avenue which had received over 45 offers. That property is sure to sell way over asking price.

So, is it worth making an offer on a repossession? I would say, usually not. If there are other bidders, I say forget it. Not worth the hassle. The only time I would make an offer on a repossession property is if the property has been lingering on the market for several months without any bids. Then, if you visit the house and see some potential, you can make a low offer with very few conditions, and you have a good chance of getting a deal. This happens, but is a rare occurrence. In my next post I will write a bit about the process of making an offer on a repossession.