Hi,
I have read about buying foreclosure properties in a US book on property investing. As I’m new to all this, can anyone help? Can you tell me where I could find out about similar properties with payments in default in Australia? What is the equivalent term here?
Thanks in advance for your help.
Jo
Dear All and Jo Anne
I would be interested to hear more on this subject as well.
I asked my bank a couple of years ago about this , but the person concerned had not really heard of it or at least (they) did not practice this form of transaction. Any suggestions?
Can you go to the banks and ask for bankrupt property information and propose to purchase the default amount??
Cheers IsagoldHey there,
Forunately we are not like the USA and the way they have extreme opportunities for investors in the forclosure world. Most backs here have to send their property back through agents for tender and or auction so they can clearly show the individual forclosed on that they obtained the top price….What the market will pay is the best price. I guess it saves their bacon on litigation potential.Hope it helps,
Enjoy
AD [:0)]Success is not the result of sponataneous combustion. You must set yourself on fire.
Reggie LeachHi,
The property.com.au website has a search category which is “Mortgagee Auction”, this is the closest I have found for this, but often there is nothing listed here anyway. Some newspaper adds will also indicate that the house has been re-posessed. The other avenue to look at is the Public Trustee. Again, this will typically be an auction as well, but you can find some good deals.
Cheers
Hi
After a little more research, apparently there are occassional adds in the papers, but in the Business sections under General Auctions or Bailiff Notes, not the realestate section.
The Auctions happen at a local magistrates court, and you need to ensure that you have finance approved. You are required to pay 10% at the Auction and there is a 2 day settlement period, so you need to have already inspected the property and potentially done any checks.
The last one advertised was in the Courier Mail on Saturday 25th of Jan.
hey birdman,
Do u know if anyone and their dog can go to these auctions, or do u need a permit?
And if the property doesn’t sell?
Thanx again,
“Everyone wants to go to heaven but nobody wants to die”
Have also heard of placing ads asking to buy homes from people having financial difficulty – if it helps them out of a bind without going bankrupt, and gets you a cheap property at the same time??????? This has only been anecdotal, have not spoken to anyone who has actually tried this in OZ. Has anyone else?
Harryson,
I am led to believe this is open to anyone. But again, not everyone is going to be able to have finanance pre-approved, have 10% deposit and be able to settle in 2 days, so it will limit who turns up.
Personally, I am going to look out for them, and go along to see what happens – all part of the education.
Cheers
Birdman and Hilary,
Thanx for your feedback birdman!!
Hilary u have brought up a very interesting point. If u were to find struggling home owners u might be able to buy the property cheap and if they don’t want to move u can make an agreement for them to rent (cheaper than their mortgage)or even provide vendor financing (wrap) for them.
In other words, u could become there saviour and, in any case, they will stay there if they want to! And remember good tenants are hard to find these days!!
Does anyone know if this is possible?
Thanx for your feedback
“The great opportunities in life are seen with the mind, not the eyes”
Harryson,
Anythings possible. It’s just a case of finding the right situation.
This is an alternate strategy that opens doors for all. It allows the people to stay in ‘their’ own home, mitigating relocation costs & provides a win win outcome.
There’s also an opportunity to pick up the remainder of their mortgage (can’t immediately recall what this called but you basically maintain payments on their behalf).
Just remember that the numbers have to work & its a realistic / viable solution.
Michael [
]Mixrex, I might be wrong but i think that the thing you mentioned is called “mirror wraps”
Savanna
Thanks Savanna.
The joys of a mental block.
Michael [
]Hi all,
My first post here! Love the forum.
This is a friend of a friend type story, but good advice nonetheless.
My friend, who’s 22 and been investing in property for about 3 years, loves foreclosures, but does find them difficult to come across.
Most of his come through real estate agents that he remains very close to, checking in weekly to see if anything knew has come on the radar screen. Often, agents will hear from the banks that a property is heading to foreclosure, generally because the RE agencies will bid for the listing.
By keeping close the to agents at different agencies, my friend hears about the foreclosure deals often before they are even on the market. He’s in a position to offer a quick sale to the bank, often without finance (he has investor’s lined up), and before the property has to go to auction.
You have to remember a few things about foreclosure deals:
1. the banks and individual bankers often don’t like dealing with foreclosures, because it makes them look bad: they made the wrong decision in giving out the loan
2. it hurts the bank’s bottom line because often they are offloading a property that is not in very good condition (if the vendor doesn’t have money to service the loan, often they don’t have money to maintain the property)As has been suggested above, by far the best situation is to get in before the property is foreclosed upon. Running advertisements in the local paper is a possibility – helping out people that are struggling with financial issues – both of you front the bank together, you offer to purchase the property (slightly under market value of course), pay out the loan and take out a new loan. It helps if you’re taking out the new loan with the same bank
!Overall, the best way to find these deals is to stay chummy with the agents. They’ll let you know what’s happening. Something I’ve always found helpful is to ALWAYS when purchasing a property, relist it with the same agent when it comes time to sell – i.e you look after me, i’ll look after you.
Anyway, just some thoughts.
Regards,
Lee Mathers
********************
Lee Mathers
Co-Founder
http://www.apprenticemillionaire.com.au
Visit Apprentice Millionaire for your free, fortnightly newsletter full of stories of success!Hi All,
Birdman mentioned Baliff/Sherriff auctions – one strategy I was toying with was approaching those whose properties are to be sold via these auctions before the due date, finding out how much they owe, and tailoring a solution to their problem…see Steve, I was listening! [
]Kindest Regards
Jason S
++++++++++++++++
Check out my E-Bay Auctions
http://cgi6.ebay.com/ws/eBayISAPI.dll?ViewSellersOtherItems&userid=jayess70&include=0&since=-1&sort=3&rows=25
]
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