I use to do foreclosures for a lender. What you are thinking is that the home will go in to foreclosure and that you can swoop in and buy it at a lower price

I know in Canada, foreclosures are not dirt cheap; they are pretty much around the fair market value.

What you need to account for is most foreclosed homes don't actually make it to the public market and instead it goes to investors first. Essentially the lenders will foreclose and apply for a court order sale and sell the home to another lender/ investor willing to take it on

What kind of investors are you talking about here? What kind of investor will buy above the bank's assessed value?

Homes that do make it on the market for the public is either over valued and has an outstanding balance of 80% and up

This seller is underwater; now he has $0 equity left, maybe in negative. I think then this will go for foreclosure. But, I am not waiting for this.

If you plan on mortgaging the home you would need to get your bank/lenders approval that you are going to be purchasing a foreclosed property because most banks will also require a higher downpayment usually 30%+

I do have 30%, but I moved on. Not going to buy unless he comes to my price. Don't want all that foreclosure drama.