Can anyone give me a place to start learning how to go about short selling in Australia? I am particularly interested in finding out about the process of making offers-they-can’t-refuse to lenders. US webpages talk about discounts of between 50-70% … wot’s the go here?
Is anyone doing this on a regular basis here?
I’d be very interested to talk to you!
Cheers.
Hi
What is short selling?
Terryw
Discover Home Loans
Parramatta
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A pre-forclosure sale at under market price where a deal is made with the lender to accept less than what the distressed vendor owes on the property. Common in USA apparently. where lenders may accept anywhere from 50 – 80% of what they are owed simply to get the problem off their desk.
In Australia the law requires the lender to achieve a fair market price for a mortgage foreclosure.
Selling at a well advertised auction is the simplest way to acheive this and is the usual method of sale.
All those theories on courthouse step auctions and other ways of getting bargains through foreclosures are not applicable here.
Thank goodness.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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I agree with Simon. You would sue a lender if they took your property off you and sold it for less than it was worth, wouldn’t you?
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
My understanding is that the process is started BEFORE the lender takes possession of the property. This is not a mortgagee sale. i am aware that the lenders here have a statutory obligation to get the best price they can when they take possession, but are they not free to forgive a debt, or discount it, if doing that solves the problem and expense of foreclosing?
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