Repossessions/Foreclosures

Hi Lep,

Welcome to the PropertyInvesting.com Community!

There was a post a few down on a similar topic – check it out – https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=446

To answer your question, bank foreclosures generally go to local Real Estate Agents who sell them from there.

I can remember seeing 19 of them being auctioned off on the one day by the one agent in a Melbournian sattelite city. It was a one-page ad with big letters “Foreclosure Auction”.

“Foreclosure Auction” doesn’t mean “Bargain – Fire Sale – Any Price Will Do!” Infact, sometimes a bank foreclosure is a selling point. It creates buyers who are shopping for bargains.
Infact, sometimes the demand created by the percieved “bargain” pushes prices up above what they’d normally be. But even if there’s little demand, it’s unlikely that you’re going to buy houses for $1 at an Australian foreclosure auction. In Australian foreclosure sales, there is almost always a reserve set.

Infact, the only foreclosure auction I’ve ever heard of not having a reserve set was a NSW rates foreclosure auction.

If anyone wants to check out rates foreclosure auctions in NSW and do some research for us, I’m told the auctions are advertised in some NSW Government Publication – probably the Government Gazette. Although, if you have a specific area in mind, I know that you can get the information through local councils.

Having said that, only contact councils if you are serious about buying because every few months they get a rush of phone calls after someone puts a post on an internet forum about it.

Also, from what I’ve found, rates foreclosures are fairly rare – it’s only in extreme cases that councils foreclose on properties because of rates owed. You need to do something ridiculous, like not pay your rates for 5 years. Usually people who don’t pay their rates for 5 years can’t afford to maintain their house for 5 years – and it’s not always the Taj Mahal.

Lastly – remember to buy properties which fit your investing goals. You don’t buy rotten eggs because you find them in the bargain bin at the supermarket. Just like you don’t want to end up with a rotten property.
Have an end goal, and plan every step you need to take to get there. (Those of you who have listened to Fast-Track will know exactly what I’m talking about here.)

Happy Investing

~Brent

Edited by – [email protected] on 05/01/2003 04:33:12 AM