All Topics / Creative Investing / Property in Mortgagee Reposession!!

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of PavSPavS
    Member
    @pavs
    Join Date: 2009
    Post Count: 7

    If a property is in possession with the Bank and you want to buy it.

    How/who would you approach the Bank?

    Thanks

    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404

    You don't. They will not sell it to you.

    The bank will send it to auction. It is the only way to prove they sold it at market value.

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    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.

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
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    Your first port of call in finance :)

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    Catalyst wrote:
    You don't. They will not sell it to you.

    The bank will send it to auction. It is the only way to prove they sold it at market value.

    Not true. I recently acting for a client purchasing a mortgagee in possession property for sale by an agent.

    The bank will use an agent to sell the property so there is no need to contact the bank – you would never be able to get on the right person anyway.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of PavSPavS
    Member
    @pavs
    Join Date: 2009
    Post Count: 7

    If you happened to bump into the real property owners whose house is about to be possessed. Can you buy it of that owner before it gets possessed.

    If a house gets possessed by the Bank, does the Bank put a mark on the owners credit like a default or Bankruptcy something?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    pav007 wrote:
    If you happened to bump into the real property owners whose house is about to be possessed. Can you buy it of that owner before it gets possessed.

    If a house gets possessed by the Bank, does the Bank put a mark on the owners credit like a default or Bankruptcy something?

    Yes, a loan default and a judgment.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    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

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of shereebeckershereebecker
    Member
    @shereebecker
    Join Date: 2004
    Post Count: 31

    You can track down the owners and find out which Bank its with and see if you can negotiate. Banks will negotiate depending on the circumstances of the property – particularly if they know they are likely to take a big loss on the property at mortgagee auction. The higher the loss they are facing, the more negotiable they will be, even if they have possession.

    Cheers

    Sheree

    Profile photo of timestwotimestwo
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    @timestwo
    Join Date: 2010
    Post Count: 2

    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?

    Profile photo of PrimePropertyInvestorPrimePropertyInvestor
    Member
    @primepropertyinvestor
    Join Date: 2012
    Post Count: 48

    It depends in which stage repossession is at the moment.

    We are now buying a house where bank has started repossession after court. Because it was only in process we with our solicitor contacted bank and stopped repossession on property. We are now waiting to exchange on property and bank will receive their money much more quicker.  

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    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

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of PrimePropertyInvestorPrimePropertyInvestor
    Member
    @primepropertyinvestor
    Join Date: 2012
    Post Count: 48

    Thank you Paul for advice.

    It seems that it is very different in Australia, it seems it is a bit more relaxed here, although the strategy we are working with comes from Australian investor.

    Thanks again!

    Profile photo of marcdwmarcdw
    Member
    @marcdw
    Join Date: 2013
    Post Count: 3

    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.

    Profile photo of PavSPavS
    Member
    @pavs
    Join Date: 2009
    Post Count: 7

    Hi Marc,

    That's an interesting comment Marc.

    Based on your experience dealing with Banks, whom do you think we should get in touch with in the Bank for these type of transactions.

    Can you shed some light in that area… that could be of help for me and other forum members

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    I would highly doubt you can speak to the bank rep directly. It would have to go via the agent.

    Who did speak to in the bank?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

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