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Mortgagee sales.

Discussion in 'Property Finance' started by Random Username, 9th Aug, 2015.

  1. Random Username

    Random Username Well-Known Member

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    Hi all,

    I am curious what the time frame and process is for a bank to "wind up" a Mortgagee sale.

    I have been following one that has failed to sell at auction, has been advertised for normal sale, has had price reductions, and still not sold.

    My question is, is there a set time when the bank has to take the best offer received?

    Thank you in advance.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'm not sure.

    They'll have an amount they're striving for - and seems that it's not being met yet.

    Put your offer forward and see how it goes.

    Cheers

    Jamie
     
  3. andrew_de_a

    andrew_de_a Active Member

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    No, the bank has an obligation to sell at market value.
     
  4. chindonly

    chindonly Well-Known Member

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    Really? I would have thought the above actions show they are wanting to sell above market value, as it has passed in at auction and has been again advertised separately without sale. The market has spoken?

    I thought banks were mostly interested in clearing the debt they have over the property? Happy to be corrected, as never been involved in one of these myself.
     
  5. andrew_de_a

    andrew_de_a Active Member

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    I've sold a number of mortgagee sales.

    Bank engages a valuer, and an agent, property is sold at the valuation.

    It's not just a matter of them clearing their debts.
     
    Terry_w likes this.
  6. meme plecko

    meme plecko Well-Known Member

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    Just bought a property for over 10% less than last registered sale price, at least in this case I believe the bank just wanted its money back
     
  7. andrew_de_a

    andrew_de_a Active Member

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    ^^^^
    What suburb did you buy in and what year was last registered sale?
     
  8. meme plecko

    meme plecko Well-Known Member

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    Logan area, 2008
     
  9. dabbler

    dabbler Well-Known Member

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    No and none, and if there is plenty of equity, there is no rush at all as they eat into it.
     
  10. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    The mortgagee is obliged to sell for market value and not fire sale properties.

    You can imagine in a recession and falling prices that softly softly approach would go out the window though.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It will take ages for the bank to take possession - 6months to 1 year depending on how long the borrower strings them out for.
     
  12. Random Username

    Random Username Well-Known Member

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    Thanks all,

    Terry, the bank is in possession.

    There was an auction with no bids.

    It has been advertised normally with no offers.

    It has had a price reduction with no offers.

    What does the bank do next?
     
  13. Dazedmw

    Dazedmw Well-Known Member

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    Go back to the valuer and ask them to consider the new evidence!
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They will probably try again. Not much else they can do.
     
  15. Sonamic

    Sonamic Well-Known Member

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    Why would they sell to only recover Debt Owed when they could sell at Market Value and make a fatter profit.
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Mortgagees don't make profits on possession of properties. Any excess goes back tot he mortgagor.
     
  17. dabbler

    dabbler Well-Known Member

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    Ask the bank, if the usual average sale takes 3 months & this is week 4 or 6, they will not be in any rush, they will only get a real move on if they believe they will lose money, they also have an obligation to get a fair price for the person/s from whom they took possession.
     
  18. dabbler

    dabbler Well-Known Member

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    Yeah, they can't do that, but they can eat into equity.
     
  19. dabbler

    dabbler Well-Known Member

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    The good old days for banks are gone......thank god ! one area where legislation is welcomed.
     
  20. SaberX

    SaberX Well-Known Member

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    Curious if do you or most agents disclose mortgagee sales? Is there a recommended path to following mortgagee sales and picking up something decent that fails to sell??

    Or as above posts show your unlikely to get a discount to market as foreclosures in usa show due to obligation to achieve best market value?

    Can PM if helps...