Canadians hold a lot of misperceptions around foreclosures. This is in large part due to the American media. The fact is that Vancouverâs foreclosure rate on real estate is less than 2%. It is much higher in the United Sates because their banking system works very differently than ours.
In Canada, when people put less than 20-25% down on their home they are required by law to purchase CMHC insurance on their mortgage. In the event that they cannot pay their mortgage, the CMHC insurance kicks-in and covers the bankâs loss. The banks are then not desperate to sell the foreclosed home at any price. They relist the home at market value and if it sells for less then the mortgage, CMHC pays the bank the difference.
...more: http://www.lisagibson.ca/foreclosures.ubr
