Auctions Sales Mortgage in Possession

Carmelian,

You will read a lot about “goin’ down to City Hall and looking up the defaults registers” in many books. But this is an Amercian thing that can’t be done in Australia because of strict privacy laws.

There was a time when a lender would sellup a property and was only interested in getting enough from the sale to clear their problem (the money owed to them) but these days, they tend to make more of an effort to get a “fair” price due to legal issues about conducting “fire sales”.

Now here’s the really funny thing… and this comes straight from a friend of mine who is a senior lending manager for a major bank…

Most lenders don’t promote the fact it is a mortgagee sale because they are mindful there is a perception this will be a “fire-sale” (a hang-over from days of old) and worried if the property doesn’t get a good price ( as can happen to any property ), they might get sued… so they often dont feature it in the advertising.

However, there is clear evidence that shows that put those words “Mortgagee Sale” / “Realisation Sale” etc up on the board and buyer interest goes through the roof… and when you combine lots of buyer interest with an auction, you usually get a much better price!

So,back to your original question…. How do you find them?

No lender is going to put you on their mailing list, so forget that one ( if they do, please put me on there as well!).

The most obvious way is to look for boards and ads with those words “Mortgagee Sales”, “Realisation Sale” etc..

The best tip however is to make an offer on the property BEFORE the lenders move in to sell it up.

To do this, you need to build a solid relationship with the RE Agents in your preferred area(s).

That’s because people who are going belly up financially typically get the property valued by RE Agents well before the lenders move in (or as a result of the lenders putting big time pressure on them).

So the RE Agents can often get a heads-up on what is about to happen and might be able to say to the vendor.. “Hey, I’ve got a buyer who pays good money and pays fast, might be a better than having the lender sell you up”.

Hope it helps.

John Blackburn
http://www.propertybooks.com.au

Hi Paul,
That’s a very useful site.

Carmelian,
You can check the mortgagee or realisation sale by doing a keyword search on domain.com.au

Regards
Sanjiv
*******

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

I doubt you will get a bargain but feel free to visit these sites

http://mipsales.com.au/listings/listings/search

http://australia.trovit.com/property/mortgagee-possession

http://nmddata.com.au

Regards

Inder

Thanks guys for the links! very helpful!

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