Purchasing from mortgagee in possession at auction

Depends on the bank and your situation. Generally 2 to 6 months.

 

How much before they act ? well, depends on policy and how pressing they think the matter is, some will be quick, some may want out of the contract anyway, some might like to soak up what they can.

 

emotion, disagreements.

people get attached to things, and cannot look as an outsider or objectively when at the tipping point.

 

It takes a while to get to repossession. This fact hasn't been missed by Dominique Grubisa who sells her program which gives you access to the database of people on the verge of repossession so you can swoop in and offer to buy the place.

 

Why wouldn't they then also cover the rates arrears (nearly $4k on this property) instead of handing that off to the purchaser?

Anyway, lots of additional hints and tips here - thanks all - and I will just have to see how it pans out. Will suss out any potential competition on Sat, and then building inspection Tues. That might be the deal-killer anyway!

 

They may not cover it in the sale but it will be an adjustment at settlement. Rate debts has to be cleared for transfer, the seller has to clear all arrears and you just pay a pro-rate until end of FY16.

 

question, say if your mortage was $500 per week,

you miss one, and then only start paying $400 per week,

will the reposesssion process be the same??

 

You will get charged penalty interest and they will start recovery process. They will likely be more open to a payment plan since you are still paying. But at some stage they will take you through the default process

 

Still a Breach of contract.

 

Auction tomorrow morning. Wish me luck.

 

Good luck!

 

Missed it. :-( Some crazy stuff going on in some parts of Geelong.

 

Interesting thread.. How much did it get?

 

Don't mind sharing now that it's sold: 36 Kidman Avenue Belmont Vic 3216 - House for Sale #121178698 - realestate.com.au - as usual the photos are flattering. You don't see every internal door with the veneer peeling due to to pet damage, can't smell the stink, they don't show the hole in the bathroom floor, damaged roof points, etc.

Passed in at 267k. Haven't spoken to the agent yet to confirm final price, but I assume $270. The building inspector suggested a $30k demo due to presence of asbestos in laundry and eaves, which, with stamps, gives a "land value" of $313. My calcs suggest a roughly $50k reno to bring it up (it's pretty bad), so $270 + $50 (+ stamps + holiding) would be close to $350k, which is fully priced IMO. Land value @ low-300s is also pretty generous, I reckon. Will be interesting to keep watch on what they do.

Rent would be low-mid $300's, so not really enough margin in it for my liking. I had set $250k as my upper limit. First bid was $260k. Never mind, there's plenty more.

EDIT: Just spoke to the agent. Sold for $285.

 

@Travelbug Have you ever been to one of her seminars? are they worth the time (they're free)? i'm considering it.

 

They have moved in "as-is"!!!

 

Its dated, but still livable.

Im sure a lot of red brick walk up units or houses will still have kitchen or bathroom like that.

 

Ugh.
Red brick is my favourite.

 

Our first home was purchased just a squeak before the bank took possession. Our settlement cheques ( did own conveyancing ) went to council and bank.

The cat lady got nothing, took nothing. Interesting Wobblycarly you talk about the stink. We could not inhabit for several weeks due to cat stench. I think many of these mortgagee sales are due to mental illness.

Best profit we ever made 112% in less than 2 years.

 

Crazy is Syd/Melb. Bargains can be had at auctions, but they are few and far between, and they will be the crap ones that stink and need work. Be persistent, and forget about picking up a "nice" tidy house as a bargain - no such thing.