Hi,
Have come across an interesting property coming up to auction by the local baliff.
Apparently he is putting the property up on behalf of some solicitors to reclaim their debt.
There is also another entity holding the mortgage, though the bailiff is not acting for them.
The bailiff has never done this before, so is flying blind and desperately hoping that the owner will clear the solicitors debt before auction date.
No access/inspection to property is allowed and you can’t see anything from the driveway.
terms are 10% fall of hammer, balance in 14 days. No other details are given, all purchase at the owners risk. Contract available for viewing at the magistrates office, but no copies availabe.
What frightened me was the clause that said “the bailiff does not warrant the purchaser protection against eviction” or something like that.
You pay money for the place and they can kick you out? The bailiff said something like, I “would be buying the creditors interest in the property rather than the property itself”. Confusing.
Has anyone had any experience with such auctions that they can share or know any solicitors who have dealt with this?
cheers
Ravtown
According to your profile you’re in Qld so I’m assuming the property you’re talking about is in Australia. I thought you might have been in the US.
This is completely foreign to me so if you carry on with this property please keep us informed as to how it pans out.
My guess is that you are repo’ing the house to pay the solicitors debt and when you have stumped up the full amount for what you paid for the property, that will pay off the 1st mortgage.
Perhaps the same solicitors had lent out the funds (some solicitors have funds of client’s money which they lend out) and are now selling the property because the owners have defaulted. And as such perhaps they don’t care whos in the house, they just want their money back…
Or perhaps there actually just selling the house and not the land (so the land has the 1st mortgage on it).
Can you contact the solicitors?
Helllman
I did hear of another property like this a couple of years ago, also in Brisbane. From my limited understanding, the purchaser was able to purchase it for the full amount of the debt – in that case it was substantially under the value of the land (if I remember it was about 40%).
Seems very much like the foreclosure market in USA although, to my knowledge, it’s not done much here. If the land value is decent, might be worth it.
Yes, check out the “eviction” stuff – perhaps a call to the mortgage holder (bank if you can find out who) or solicitors might shed some light.
I’d be interested to know how you go.
Regards
Megan
Megan
http://www.propertyhub.net
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