Understanding Calgary Foreclosures: Bank-Owned vs Judicial Sales

In Calgary, prospective homebuyers interested in foreclosures will generally encounter two types: Bank-Owned Foreclosures and Judicial Sales. It's crucial to understand the nuances of each type to make informed decisions.


Because foreclosures are a bit tougher to navigate, we recommend consulting with one of our agents experienced with foreclosures so you can ensure you're in capable hands to help you throughout this challenging process. 

Bank-Owned vs Judicial Sales:

These are the two Types of Foreclosures you'll typically see in the greater Calgary area.

If you’re thinking about buying a home, many of our buyers are often wondering about foreclosure properties. Before you start the process, it’s vital that you understand the differences between bank-owned sales judicial sales through the court systems. Partnering with a licensed real estate professional who has experience in these matters is always a great choice! 

Bank-Owned Foreclosures 

When a homeowner defaults on their mortgage payments and has little to no equity in the property, the bank or mortgage lender can take over the title of the home. This process leads to a bank-owned foreclosure. In these cases, the bank is responsible for selling the property.

Key Features:

  • Process: More straightforward for buyers. Offers can include conditions like home inspections or financing.
  • Advantages: Often quicker to close, less complex than judicial sales.

Judicial Sales

Judicial sales occur when a homeowner still has significant equity in their property at the time of default. These sales are processed through the court system.

Key Features:

    • Offer Conditions: Offers must be unconditional. This means you cannot include conditions like financing or home inspections.
    • Decision Process: The court reviews all offers and makes the final decision.
    • Multiple Offers: In case of multiple offers, the highest bid typically wins, but the exact details of other offers are usually confidential.

Frequently Asked Questions About Judicial Sales

  1. Home Inspections and Appraisals: Generally, you cannot conduct a home inspection or appraisal before making an offer on a judicial sale property. However, it's crucial to discuss this with your real estate agent for any possible exceptions or ways to navigate this strategically. 

  2. Offer Acceptance Timeline: The time it takes for an offer to be accepted varies. The court reviews all offers, and this process can take several weeks or even months.

  3. Multiple Offer Situations: In a competitive market, multiple offers are common. The court reviews all bids, but the details of other offers are typically not disclosed.

  4. Finding Out the Highest Offer: The process is confidential, and the details of other offers are not usually shared with prospective buyers.

  5. Is there a way to have an advantage in this process? Yes. Aligning yourself with an experienced agent can equip you with more options, understanding, and ways to present your offer with its best 

Should You Consider Buying a Foreclosed Property?

Buying a foreclosed property in Calgary can be a smart investment, but it's not without its challenges. These properties often come with additional risks and complexities. For instance, the condition of the property might be less than ideal, and the purchasing process can be more intricate than a standard home buying process.

Key Considerations:

  • Risk vs. Reward: Weigh the potential savings against the risks (like unknown property conditions or complex buying processes).
  • Expert Guidance: Work with a real estate team experienced in foreclosures to navigate these complexities.
  • Risk Assessment: Be prepared for some level of risk, as properties in judicial sales are often sold "as is, where is," without any guarantees or warranties.

The Real Estate Partners Team: Your Foreclosure Experts in Calgary

Our team at The Real Estate Partners has a wealth of experience in handling Calgary foreclosures. We've worked closely with banks and individuals, gaining unique insights and expertise in this market segment.

How We Can Assist:

  • Market Knowledge: We understand the Calgary foreclosure market and can identify the best opportunities.
  • Navigating Complexities: Our experience with both bank-owned and judicial sales means we can guide you through the intricacies of each process.
  • Protecting Your Interests: We ensure that your interests are safeguarded throughout the buying process, from initial offer to final closing.

Contact Us: Whether you're a first-time buyer or an experienced investor, we're here to help you explore the potential of foreclosure properties in Calgary. Contact The Real Estate Partners Team today to start your journey towards a successful foreclosure purchase.