Property in Mortgagee Reposession!!

Hi

I used to sell a number of homes for a BANK (cant mention who) in the Werribee area (Melbourne), Most banks will elect a local agent or vendor advocate to sell the home on their behalf.

Just be aware that allot of the homes that are controlled by the bank usually achieve a high price because of the amount of interest they get.

EG: This year a block of land (600sqm)  with a home that was barley standing was on the market by the bank at $200,000 with a rundown home. I went to the auction to have a look the auction was only 5 houses down, at the end of the auction the land was sold for 310,000 – This guy probably paid 60K more then he should of.

Hi Pav

If the lender (bank) already has a writ of possession I normally walk away.  If not and an lot of ducks line up, I may consider using our Assumptive Joint Venture (AJV) process.  However I regard the AJV as the most difficult and risk prone technique I've come across in vendor finance.  Therefore, if you have come across a potential AJV and you don't have AJV experience, I strongly suggest you find a vendor financier with extensive experience in this field to partner up with.

Cheers,  Paul

Speaking to an agent recently (just on this singular case) he has not seen banks selling privately prior to auction. That's not to say that it doesn't happen, if you make an offer that's good enough they might accept it prior to auction?

Alexei and Ilva, this may be possible in the UK but the situation is quite different in Australia.  Once a writ of possession has be obtained in the courts in Australia it is very unlikely that a lender would risk selling other than by mortgagee auction, as this would leave them open to a claim that the property wasn't sold at market value.

timestwo, as mentioned above, with a residential property, it's highly unlikely the lender will sell prior to the mortgagee auction because the risk of being accused of selling under market value.

Cheers,  Paul

we have negotiated purchases from banks since 1991 and NO transaction has been the same.

Banks are people and if you speak to the right person at the right time you may get the result you are looking for.

We have found that the longer the property has been "received" for the easier it is to get whatever terms you need.

The bank will usually follow the "play book" to start with which is what the other posts are really refering to 

1. reposess

2.market

3.auction

etc

but often this whole process fails and it is then that the best deals can be found

usually I would stay away from any "fresh" repossessions the bank needs conditioning and this only happens over time.

The bank won’t deal with you directly. You will need to go through the bank’s lawyers for the transaction which you can find on the front page of the contract of sale.