Foreclosure Listings

Hi

I have been thinking on the same lines for a while, and  seriously I am also looking for an answer.

I tried to have a conversation with a Banker friend regarding this a year ago, but I guess he was not very comfortable parting with any indside information. Well he needs to save his ass****etts as well.

I think this requires very good networking skills(I am yet to accomplish that) PR skills, and the main issue is th TRUST you can establish between you and the information provider. Though foreclosures do come up for sale through REA's, but then you need to be on the A list of the REA so that its offered to you before the property hits the stands.

If you find a way please share wiith us or atleast me.

Regards

Ashish

Hi Aimhigher

this was discussed on this forum recently.  Here is the link:

https://www.propertyinvesting.com/forums/property-investing/help-needed/4324090

Having said that, I have noticed that valuations are coming in VERY low at the moment, so if all three valuations come in low then there may be a few bargains out there.  I will say though, banks councils etc must be seen to not be favouring anyone so I would think it unlikely that sales like these are being snapped up by insiders.  If anyone on the forum has been able to get a bargain from knowing the "right" people, please feel free to correct me.

Cheers

K

Thats correct finance companies that handle forclosures hand ball all there properties to realestate agents in the given area to sell so as to ensure the highest amount is gained from the sale in the public domain. I don't believe there is an accessible list out there available to the public for obvious reasons. Can you imagine the 60 minutes stories and a current affair scandals if this were the case

Milt,

You're welcome AH.In the US they are common, even the signs out the front of properties for sale, boldly state FORECLOSURE.

As I mentioned above,  I think banks here need to maximise their return and be transparent by going to auction with licensed agents. I read somewhere that they are also rely on two or three independent valuers findings in setting the reserve or at least being a guide to the reserve price.

I wonder if the borrower had LMI might make a difference to the sales process……although they would still need to be chased down for other assets to make up the loan if the amount wasn't satisfied at auction, and there was a short-fall, so probably not.

In the US the thinking seems to be that the buyer is helping out a situation by purchasing the foreclosed. It does not seem to be frowned upon.

In Aus the harvesters of tall poppies would be jumping up and down crying fowl-play and as Milt stated above, can you imagine the 60 Minutes stories and TT and ACA. As a nation we love to chop the rogue crooked manipulative property investor to shreds. Mr and Mrs average here don't see it as helping someone out of a predicament, whilst satisfying an investment purchase. It rarely is seen as win:win here. It sells more press and sob stories on the telly to paint it as WIN:lose.

Those who have ever seen Rick Otton's talk on warrior nations versus convict nations will understand what I'm talking about

I think Scotts last sentence is the crux of the difference between what happens in the U.S. and Oz. with foreclosures.

I believe that in the U.S. you are allowed to walk away from your house. This means that when the value of the property is lower than the mortgage people just hand the keys over to the bank and walk away. They can't be asked to make up the difference using their other assets. The loss is the banks problem. Correct me someone please if I am wrong. 

This is not the case in Oz. Any shortfall on the mortgage is still the responsibility of the mortgagee. The bank can hardly expect to be allowed to sell the property ( on behalf of the mortgagee ) for a " friendly " price to make the sale easy and then go after the mortgagee for the rest.

So no, it's neither the tall poppy syndrum nor 60 minutes. It's that buying at less than fair market price is definately not a help to the distressed seller.

I personally don't understand the logic behind the U.S. system and think that it's this system that greatly exacerbated their housing meltdown.

Interestingly, speaking to a mate the other day and the current theory around some of the banks is to ensure the properties are advertised as mortgagee sales as it has been creating greater interest and better sales results

You need to dig… for instance, this friday 25th July there is one at Surfers Paradise Marriott Resort & Spa for 40+ auctions in South Queensland. Most (all) of those will be foreclosures.

Good luck !

Why on earth would anyone want a list of foreclosure Properties.   If you think that you are going to get any special deal here then guess again.   Try following any Public Trustee auction and you will see that in many cases they get more than the property is worth just because so many people go to these auctions in the belief that they are going to secure a bargain and they continue to out bid each other to above real value.

The Seller/Auctioneer have a very strict duty of care to make sure that they obtain best value for the property in order to stop the Original owner sueing the forcloser for underselling their property.   Stop and think about how you would feel if the shoe were on the other foot and it was your property being foreclosed.   Would you like to think that the Bank did everything in their power to make sure that you got  the best price?   I'm sure you would.

I've tried to track them down too .As someone said in US very common you don't even  have to track but true to form – not good enough for Australia .
I did hear a few times too that ours don't even really go any cheaper anyway unless you get lucky or have contacts because again in true to form , here they prepare them all properly and stuff about .  By the end of it you just have an ordinary action anyway especially with the investor competition here these days.
Forgot about it in the end , just shopping for bargains was  easier.

Cheers