Why this Kamloops home is for sale at less than a quarter of its value
A Kamloops home is currently listed for sale at less than a quarter of its market value and has gotten lots of attention from potential buyers, but there's one big catch if you want to buy it — you can't move in.
The Batchelor Heights home is listed at $225,000 in a court-ordered sale that will hand the buyer a half share of the equity in the home, which is a result of a mortgage foreclosure.
Court documents do not list an appraised market value of the home at 996 Quails Roost Court, instead citing B.C. Assessment, which lists the assessed value of the 5-bedroom, 4,100 square-foot home at $960,000. Market value is likely even higher.
Jack James is a mortgage lender and former lawyer involved with the case who represents 4337 Investments Ltd. The investment company took control of one of the former owners' financial interest in the home through the court proceedings.
"You would buy as an investment speculation," James said. "It's half-interest at a price well below market conditions, then mostly just sit on it."
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James called the court proceedings for the foreclosure an "administrative mess," as it involved multiple interested parties and the court ordered sale of this property and another in Sorrento.
The mortgage on the home in Sorrento was foreclosed, but once that home was sold, there wasn't enough funds to pay off the remainder of its mortgage.
That's where the Batchelor Heights home comes in. The same couple involved in the Sorrento home live in the house at 996 Quails Roost Court, and after years of court proceedings, the half interest of the home was handed over to 4337 Investments to sell in order to pick up what was owing on the foreclosed mortgage.
James said the $225,000 it's listed for still won't make up for deficiencies, but it will help finally bring litigation to a close.
The original mortgage for the Sorrento home was held by Ryan Mortgage Income Fund Inc., but that company eventually handed the half-interest to 4337 Investments to sell.
Woody Kuraoka, a Century 21 realtor, is selling the home. He refused to comment on the details of the listing, but he did confirm that he has had many inquiries about the home.
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Prospective buyers have been calling to inquire about the home, citing the low price, but are steered away when they learn of the half-share deal, he said.
According to the Century 21 listing, the home was built in 2019 and sits on a lot over 5,000 square feet.
The listing purports that the home is ideal for investors because of the half-interest deal.
Court proceedings are not over yet, however and many details of how ownership obligations and the share is determined. Once a buyer signs the deal, James will likely return to court as the co-owners then decide who will pay taxes and other fees associated with the property.
READ MORE: Putting Kelowna's $1 million for median-priced home in context
— This story was corrected at 12:00 p.m., Oct. 28, 2021, to clarify that the mortgage on a home in Sorrento was foreclosed, which affected the 996 Quails Roost Court property.
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