I. Executive Summary

The Calgary real estate market is currently experiencing a notable increase in the number of
foreclosure listings, presenting both potential opportunities and unique challenges for prospective buyers.
These properties, often characterized by a distinct purchasing process involving court dates and being sold “as is, where is” without a full real property report, require a thorough understanding of the associated legal, financial, and practical considerations.

While acquiring a property at a lower price is appealing, the intricacies of the foreclosure market in Alberta demand careful due diligence and a realistic assessment of profitability and risks. This report details the purchasing process, analyzes profitability, highlights inherent risks, and weighs the benefits and drawbacks within current market dynamics.

II. The Unique Process of Buying Foreclosure Properties in Calgary

A. Initiation of Foreclosure and the Role of the Court

Foreclosure in Alberta is a legal process initiated by a lender – typically a bank – to recover the outstanding mortgage balance when a borrower defaults on their obligations.
A default occurs when a borrower fails to meet the scheduled mortgage payments or other contractual conditions.
In many cases, lenders may attempt to work with the borrower; if these discussions prove ineffective, the process advances with the filing of a Statement of Claim with the Court of Queen’s Bench.

The borrower then has a limited window (typically 20 days) to respond. If they do not, the lender can proceed by noting the borrower in default and eventually filing an Affidavit of Value, which provides a professional appraisal of the property’s market value.

B. Judicial Sales vs. Bank-Owned Foreclosures

In Alberta, the foreclosure process generally culminates in a judicial sale – a court-supervised procedure.
When an offer is submitted on a foreclosure property, the court reviews and confirms the sale, transferring the title directly from the borrower to the buyer.
Should no acceptable offers arise or if the borrower cannot resolve the default, the court may issue an Order for Foreclosure, whereby ownership transfers directly to the bank, resulting in a bank-owned, or REO, property.

Whether transacted through judicial sale or as an REO, these properties are sold on an “as is, where is” basis – a key consideration for buyers.

C. Understanding Court Dates and Redemption Periods

In a judicial sale, potential buyers must be aware of scheduled court dates when offers are formally submitted. During the redemption period—a set timeframe (usually three to six months) after the court grants a Redemption Order—the defaulting borrower may repay the outstanding mortgage to regain the property.
This provision introduces additional risk because the borrower retains the right to redeem the property until a final foreclosure decree is issued.

D. Implications of “As Is, Where Is” Sales and the Lack of Real Property Reports

A significant characteristic of these transactions is that properties are offered in their present condition – without guarantees or warranties. Buyers must conduct comprehensive due diligence (including arranging professional inspections) to uncover any potential issues.
Additionally, many real estate sales of this nature are completed without a real property report, which typically provides vital information on legal boundaries and the location of structures.

III. Profitability Analysis: Can You Make Money Investing in Calgary Foreclosures?

A. Factors Influencing Profitability

Many investors expect significant discounts on real estate acquired through foreclosure. In Calgary, however, the judicial nature of the process generally results in sale prices that better reflect the property’s fair market value.
Profitability is impacted by the purchase price, repair costs, and prevailing market conditions.

B. Strategies for Profitable Foreclosure Investments

Two common strategies include flipping (purchasing, renovating, and reselling) and acquiring properties to generate rental income. In both cases, careful budgeting, accurate repair cost estimation, and an understanding of local market trends are crucial.

C. The Reality of “Deals” in the Calgary Market

Although investors may be drawn by the prospect of a deep discount in real estate foreclosures, the true opportunity often lies in acquiring a property in a good location with potential for added value.
Buyers must account for carrying costs and potential unforeseen repair expenses to truly assess profitability.

IV. Navigating the Risks Involved in Buying Foreclosure Properties

A. Financial Risks

The “as is, where is” sale condition may hide costly repair needs—from structural issues to plumbing or electrical faults—which can severely affect the bottom line. Additionally, obtaining financing can be challenging, often necessitating a cash offer or alternative loan options.

B. Legal Risks

Title issues and the possibility of the borrower redeeming the property during the redemption period represent significant legal risks. Securing title insurance and consulting a knowledgeable real estate lawyer are highly recommended.

C. Property Condition Risks

Without warranties or detailed disclosures, hidden damages may only become apparent after the purchase, emphasizing the need for thorough inspections and budgeting for unexpected repairs.

V. The Essential “Do’s and Don’ts” for Buying Foreclosure Properties in Calgary

A. Due Diligence

Research is critical. Engage an agent with expertise in real estate foreclosures, and secure professional inspections and legal advice before making an offer.

B. Financial Preparedness

Secure pre-approved financing where possible—but be aware that many transactions may require a cash offer. Budget carefully for purchase, repairs, closing costs, and other carrying costs.

C. Offer Strategies

Recognize whether the sale is judicial (often requiring an unconditional offer) or a bank-owned property that might allow conditional offers. Never make an unconditional offer without performing extensive due diligence.

D. Understanding the Contract and Closing Process

Have your lawyer review the contract thoroughly, as foreclosure sales may differ from standard real estate transactions. Be prepared for a longer and more complex closing process.

VI. Benefits and Demerits of Buying Foreclosure Properties in the Current Market

A. Potential Benefits

In a market with rising real estate inventory and a gradual shift towards balanced conditions, buyers may find opportunities to acquire properties below market value—especially if renovations can quickly create added equity.

B. Potential Demerits

The unique characteristics of foreclosure transactions—increased legal complexity, the risk of redemption by the borrower, and the absence of standard disclosure documents—may offset potential savings and require a more cautious approach.

VII. The Implications of Unconditional Offers Without Inspections or Financing Conditions

A. Increased Risk Exposure

Making an unconditional offer, particularly in a foreclosure sale, dramatically increases risk. Without the benefit of full inspections or secured financing, buyers face the possibility of costly, unforeseen repairs.

B. Potential for Faster Offer Acceptance

While riskier, unconditional offers are often more attractive to the court or the seller, which can lead to quicker acceptance in competitive bidding situations.

C. Mitigating Risks

Strategies such as performing any allowed on-site inspections, securing multiple lines of financing pre-approval, and budgeting for contingencies are essential steps to help mitigate these risks.

VIII. Case Study: Learning from Success Stories like Jerry Moras

A. Analyzing Potential Strategies and Success Factors

The success of industry veterans like Jerry Moras underscores the importance of solid local market knowledge, accurate project cost estimation, and a well-established team of professionals. This expertise helps pinpoint undervalued properties and efficiently manage renovations.

B. The Role of Market Knowledge and Risk Tolerance

Successful foreclosure investing requires an understanding of the broader real estate market trends as well as a willingness to accept higher risk in exchange for potential high returns.

IX. Analyzing the Increasing Number of Foreclosure Listings in Calgary

A. Contributing Factors

Economic conditions—including rising interest rates by the Bank of Canada—have placed financial pressure on many homeowners, leading to an increase in mortgage defaults and ultimately more foreclosure listings.

B. Potential Market Impact

An increasing supply of foreclosure properties can create downward pressure on the overall real estate market prices, though it also provides increased opportunities for buyers and investors.

X. Conclusion and Key Recommendations for Potential Buyers

The Calgary foreclosure market represents a unique opportunity for buyers and investors, one that requires both a strategic approach and a deep understanding of the risks involved. For those considering an investment in distressed properties, remember to:

• Engage experienced professionals—particularly agents and lawyers familiar with real estate transactions.
• Perform thorough due diligence and secure professional inspections.
• Be financially prepared for cash offers and unexpected repair costs.
• Understand the implications of making unconditional offers.
• Plan for longer, more complex closing processes.
• Obtain title insurance to safeguard against legal risks.

Although investing in foreclosed properties carries inherent risks, it can lead to considerable financial rewards with a careful, informed approach.

Key Tables

Table 1: Calgary Foreclosure Process Overview

Table 2: Do’s and Don’ts of Buying Foreclosure Properties in Calgary

Table 3: Calgary Real Estate Market Trends – 2025

Works Cited

The information referenced in this post is drawn from various authoritative sources on foreclosure procedures, real estate law, and market analyses.
(Examples include DBH Law, Calgary Homes, Kahane Law Office, Calgary Legal Guidance, Hendrix Law, Verhaeghe Law Office, Olex Legal, Zolo, PassGo Real Estate Lawyers, and more.)