I'm interested to hear what settlement terms people have managed to negotiate when buying from the mortgagee.
Seems to be two schools of thought;
1. The bank wants their cash back now! Sooner the better 30 -60 days.
2 The bank just wants the property sold, settlement period is not critical.
I would think option two would be more likely as the bank is more concerned with getting the issue resolved and knowing the cash is on its way. Provided the sale price is acceptable.
I understand that the usual practice is that the property will go to auction (The property in question is advertised as such) But in the current climate of many properties being passed in, would the bank be more inclined to accept a market value offer prior to auction? I believe it is not a requirement that banks must go to auction.
It's not a requirement to go to auction but when they do there's no dispute about "fair price". Which is why they DO go to auction.
Why do you want to pay market price? If you are going to auction don't show your hand before.
If you don't want to bid at auction, wait until after. It will be listed with a price then.
I assume the bank would have a valuer set a reserve price. By market price I mean an offer that is as close to the reserve as possible. I wouldn't expect the bank to accept anything less prior to aucton.
I would prefer not to go to auction as it is a potential development site with some complicated issues, but if resolved would make it a very good development. One of which is a disused laneway next to the block. I have spent a bit of time with the local council and think i can make it work. I would like to get in before other buyers have the chance to work through the issues.
OK maybe approach the bank with you proposals and see how you go.
You can try to negotiate terms and still go to auction (eg deposit, settlement time etc). Not sure about a laneway though as I'm assuming another party owns it.
Sounds a bit tricky but if it's worth pursuing go for it.
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