Buying mortgagee property

Discussion in 'The Buying & Selling Process' started by 2ndchance, 29th May, 2020.

Join Australia's most dynamic and respected property investment community
  1. 2ndchance

    2ndchance New Member

    Joined:
    29th May, 2020
    Posts:
    4
    Location:
    WA
    Hi all,
    Looking for a bit of advice in relation to buying mortgagee in possession property.

    I have placed a cash offer on a mortgagee in possession (CBA not advertised as mortgagee in possession) property last week just under asking for my son to live in & rent from me. Property had only been on the market a few days when I made the offer as he’s been looking for the right property at the right price & I have a quite small cash budget.

    Latest response from the agent is that the offer is with the assessor & she had asked from an answer before the long weekend (I’m in WA) but obviously that hasn’t happened.

    Given the delay for the response is it likely that they are looking for a better offer - mine is less than 5% under asking - or just a case of them taking their time? Anyone who might be able to pass on some advice about mortgagee sales would be appreciated!
     
  2. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,319
    Location:
    Here.
    My understanding is these types of deals need to be signed off by someone in the bank to ensure the bank isn't taking advantage of the original owner. It can take a little time for them to process it.
     
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,017
    Location:
    Perth, WA
    Probably just taking their time. I bought one in WA a while ago and they took like 5 days to get back to everyone.
     
  4. 2ndchance

    2ndchance New Member

    Joined:
    29th May, 2020
    Posts:
    4
    Location:
    WA
    Thanks @Peter_Tersteeg & @thatbum

    I am sure that the bank will need someone to check it for fairness but I think the owner has passed away as the Public Trustee has a caveat on the property as well.

    We will keep our fingers crossed then for Monday for some positive news as apparently the department processing it is located over east
     
  5. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,017
    Location:
    Perth, WA
    I bought from CBA too. FYI they were absolute jerks to deal with. I'm sure you've read their contract of sale and all the crazy powers they have under it - yeah they certainly used them on me including delaying settlement for more than a month without even telling me about it.

    Good luck with that.
     
  6. 2ndchance

    2ndchance New Member

    Joined:
    29th May, 2020
    Posts:
    4
    Location:
    WA
    Thanks @thatbum not sure if that gives me more or less confidence. Can handle a couple settlement delays but as he wants to move before his lease runs out hopefully it won’t be terrible. That’s even if they do accept my offer.
    No crazy details in my contract & they replacing 2 items which was written into the offer.
     
  7. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,017
    Location:
    Perth, WA
    Huh? Who is moving before the lease runs out? I thought you were buying from the mortgagee?

    EDIT: Oh your son. Well surely that's not a deal breaker is it?

    Are you saying you got a standard joint form of general conditions contract?
     
    Last edited: 30th May, 2020
  8. 2ndchance

    2ndchance New Member

    Joined:
    29th May, 2020
    Posts:
    4
    Location:
    WA
    @thatbum my sons lease is up early August.
    The RE have given him the paperwork to resign for 12 months but he isnt wanting to due to issues over maintenance. He is moving into the property & will possibly purchase off me later down the track when he can obtain finance (long story but he is unable to obtain a mortgage at this time himself)