Hi there guys,
I have a few questions for you lot.
I have found a property in regional Victoria that seems a little bit interesting and has potential for a renovation job for a quick cash investment. It seems to be semi trashed and the kitchen seems older than the land itself and is in desperate need of an upgrade. The floors are all stained and torn and needs a new paint job.
Anyway, my first question is that it has been repossessed by the Commonwealth Bank and they have a short settlement obviously on the vacant building. I asked the REA if I was to purchase could we arrange an extended settlement and give me prior access to the property. He immediately said no about the prior access due to public liability issues. Does anyone have experience with purchasing off a Mortgagee and are they easier to negotiate below market prices in order for a quick sale? Also what would my chances be of getting the early access with plenty of haggling?
If anyone has had any experience with a purchase like this I would love to hear there story, good bad or ugly!
Regards Brendon
I think you will find it harder to negotiate because you are dealing, not with the owner, but with the bank. They cannot negotiate below market price or they could be liable to the owner for the shortfall. They could negotiate on conditions, but because you are dealing with a bureaucratic organisation it is hard to arrange.
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
Brendogs,
My understanding is that it is likely to be difficult to get a long settlement. Mortgagee sales are likely to go to people who can offer a short settlement and generally unconditional. I bought one of these and these were the terms put on me for a sale at a lower price.
You can get a good discount as I'm guessing the bank is looking io recover their costs before making a profit.
Shivasko
In a perfect world the bank would only sell the property for the amount left owing on the loan. Then you could buy it under market value. But this perfect world doesn't exist.
I believe you will find it very difficult to haggle. It is easier to haggle with actual owners in a slow moving market. With owners who have a vacant property early access shouldn't be a huge issue.
Ryan McLean
CashFlow Investor
Read my blog post: Top Ways To Save Your House Deposit FastRyan McLean | On Property
http://onproperty.com.au
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