This is my first posting!
Can anyone tell me how you go about finding mortgagee properties. I know they exsist but it seems to be shrouded in secrecy. I believe this could be a cheap way to start investing in properties. Can anyone give me some advice?
StartThis is a US tactic where mortgagee’s offload properties cheaply and authors write about it a lot.
In Australia the law requires that lenders sell properties for full market price. Generally they go to Auction. If advertised as a mortgagee sale you will find people such as yourself attending expecting to get a bargain. Sometimes you might but not as much as the American authors would have you expect.
Best way to find them ius to establish a network of REAs who know you are serious and who will call you when they get something.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Real estate agents are “supposed” to have a fiduciary duty to the vendors that they are acting for and therefore strive to achieve the best possible price. Good REAs will not disclose vendor details, but some will [biggrin]
Why not just put an ad in the paper that you buy properties from people facing foreclosure. That way vendors can ring you direct!
Investment Property Management
http://www.adprop.com.auIf you locate a Mortgagee in Possession property, asking for the contract will automatically disclose the vendor as it will be contained in both the front page of the contract for sale of land and also within the title searches that are required as part of the contract.
The mortageee / administrator / liquidator of the estate does have the fiduciary duty to sell the property at a ‘fair and resonable’ price but thats not to say that the people who the are foreclosing on are aware of this fiduciary duty or able to estable what is a ‘fair and reasonable’ price.
Kind Regards
Ring up each Bank and ask for their mortgage department and ask for some to assist you with Mortgagee in possession properties.
I don’t know about profiting from other’s misfortune is the way to go here. It doesn’t sit right with me; if the shoe is on the other foot.
I may be a ‘loser’ in this area of wealth creation, I suppose it’s the price I pay. Anyway, it’s my 2c worth.
CT
I think buying the house before they get foreclosed can save their credit rating and possibly save them from bankruptcy. Therefore they can go out and buy another property in the next couple of years, possibly even save their business.
Sure beats twiddling their thumbs whining about the world having it in for them. Obviously there’s a line that is easy to cross, but so long as it’s not just milking them for their mistakes, buying before foreclosure can be a great thing to do for someone.
Craig
A friend of mine put me in contact with another friend of his who was being foreclose on. The bank had given him 6 weeks to sell the joint or they’d take it. I purchased the property for slightly underrmarket value and got a good deal and some very helpfull equity.
He didn’t feel he was ripped off as i gave him a reasonable price. He was very very pleased and happy i was there to purchase the property from him. I solved his problem and he appreciated it. We did it without the need of an agent so that also saved him agents fees.
I think the trick is, if you come across a foreclosure, offer a reasonable price, but make sure there is enough in it for you to make it worth your while – that way both sides win.
So long as you don’t screw the poor vendor for very penny, then there’s nothing unethical about it. someone wants to sell, you wanna buy, give em a reasonable price n ur done.
Cabo Wabo
You could try to do a search in http://www.domain.com.au using the keyword : mortgagee.
Basically select the region you want to search on then hit continue. This will force another page with surburb selections to open. There is a keyword field near the bottom of that page. By putting the word “mortgagee” in the keyword field, any sales which the agent has advertised with the word “mortgagee” in the ad will be picked up….
it’s not a complete list as i have found that most agent doesn’t like to advertise that it’s a mortgagee sale up front…
anyway hope this helps….
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