Hi Guys,
Looking to buy an my first IP property, late 2010/ early 2011. The strategy that appeals most to me is the buy and hold strategy, however I would also would like to keep my options open by buying a large block with subdivision potential. Keeping the buy and hold strategy in mind, I read in the paper about interest rates going up, and people struggling to afford to pay mortgage and banks foreclosing on their homes.
Now I presume that for example if someone owns a house worth 500K, and owes 400K to the bank, and the bank forecloses on their house, then the bank sells their house @400K.
My question is, where to find these property’s that may sell for under market value. Where are they advertised, or do they usually auction?
Any help on this or clarification on this type of scenario would be most helpful.
Cheers
T_H_G_H wrote:Now I presume that for example if someone owns a house worth 500K, and owes 400K to the bank, and the bank forecloses on their house, then the bank sells their house @400K.This is not quiet correct. The lender will need to sell the property for market value or risk being sued.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thus far, all of the foreclosed houses I've seen for sale are always placed on auction. As such, they probably sell for market value, or in recent times, sell actually above market value. But hey, who's counting…
Thanks for clearing that up. I wondered what happened to those houses that have been foreclosed on
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