Have tried to searching for info on mortgaee sales but couldn’t find what I’m looking for. Hope someone can shine some light here.
I have just purchased a mortgagee IP and have just settled this week. Since I live in Australia, I got my father to go around and check it out today. He found the previous owners still there. He went to the Real Estate handling the mortgagee sale and was told it was in the contract and that they were our resposiblity. I spoke to my lawyer prior to settlement and he said they are not our responsiblity. I can’t speak to my lawyer until Monday so I’m wondering if anyone has had anything similar happen to them. My father- inlaws lawyer told him he can’t get the police to kick them out. The only thing we can do is get a court order but that can take awhile. Im flying back next week to work on it and need them out like now.[angry2] Any advice would be much appreciated. Thank you
I purchased this house in Kaitaia. Top of the North Island. The previous owners who forfeited the bank are the ones still in the house. I thought it would be the responsiblity of the real estate agent who was looking after it for the bank to get rid of them. They have said it is our responsibilty as it is written in the contract. My solicitor told me different. I’m hoping someone knows what to do with them in a hurry.
I’ve just read: The property is sold subject to existing tenancies or occupations (if any) including holding over by the Mortgagor.
I missed that and so did my solicitor. Never mind I’ll have to work something out now that the ball is in my court. Thanks for your help. Another lesson learned.
I’ll let u know how everything goes. I have no Tenancy Agreement with them and as far as I’m concerned, they are squatters and are trespassing. Since the law is usually on their side, I have to be careful how i handle things.
Getting the Police to kick them out was one of my options but was told we couldn’t do by my father-inlaws lawyer.
All I can say is Wish me luck…..
Perhpas you could encourange your solicitor who “missed the problem” to now “sort out the problem”. (Perhpas it could be suggested to them that this should be done free of charge due to the incorrect advice being given in the first place).
gosh isnt it funny? I grew up in kaitaia and couldnt wait to get out of the place (as soon as I left school) and here I am thinking of buying my first investment property in NZ and I stumbled accross your dilema. I would never in a million years think of investing in Kaitaia, can you let me know what the rental returns up there would be and what drew you to the place? where abouts is your mortgagee property. I would tell them to get out or sign a lease, and a condition of the lease is for them to bunk somewhere else next weekend while you are in the area doing your cosmetic changes. The funny thing is, if this is a cashflow positive property they will be paying you more rent than what their mortgage was in the first place, I’d be very wary there as if they couldnt afford the mortgage could they possibly afford the rent?
Keep up updated, its a very interesting predicament. If you need legal help I can recommend Robin Fountain (649 406 0690) who is a conveyancer up there in Mangonui but I dont think he works Mondays. Otherwise he used to be in a firm called fountain manning and co (649 408 1050).
This is quite common with Mortgagee sales. Getting the previous owners out. Your Lawyer definitely SHOULD HAVE KNOWN that. In some cases the previous owners take with them stoves, hot water cylinders etc.
NOt the responsibilyt of the AGent. IS your responsibility.
IF you want them out then suggest that they leave and don’t harm the place and you will offer them $1000 but there is a deadline for that money. Not gone by the deadline then no money and you will ask the police to help move them out.
I have heard an old tale of someone who hired a ‘group’ to come and remove all the external doors from the property and after the occupants left put them back on again. DOn’t touch their possessions though. That could be a minefield.
Sack your lawyer.
It sounds like there were many holes in this purchase. The first thing you could have done was checkc who was tenanting the place and what date they would be vacating. It seems as if your lawyer was not communicating with their lawyer. Your lawyer sounds pretty slack. Thing is though, your lawyer is there to advise you, but you signed the contract. So the buck may stop with you. How could you both have missed such a clause? Caveat emptor. for next time.
It seems to me that targeting distressed sellers is probably causing hassles everywhere.
It’s time to forget what could/should have been done and concentrate on what can be done. It maybe worth while to find out why the place was mortgagee sale. Their situation may have changed from when they lost the place and may be able to meet what you need/want in rent. It is most likely that they want to stay because;
1) it was their home,
2) they have nowhere else to go or
3)it’s their way at getting back at the bank for taking their home and you for buying it.
1) Have you considered them as tenants?
2) Could you possibly turn it around into a wrap situation?
3) Offer to help them find a new place.
A phone call to them may be the easiest way to find out what they want and then turn that want around to suithelp your situation. I would forget any heavy handed tactics and as a secondary precaution get insurance on the property right away if you haven’t done so.
Back from my NZ trip and here to tell you the outcome of my little dilemma I had. The tenant that wouldn’t move out – well I got my father-inlaw to go around and bluff them. He told them they were trespassing and if they didn’t move out we would take them to court. As soon he mentioned court cost, that got them. They said they couldn’t afford that and moved that weekend. We flew out 4 days later.
If that didn’t work I would have slipped them some money like western mentioned, time wasn’t on my side.
As for my lawyer, he’s only young. His father is the main Partner there. I will still use him even though he made a mistake. I made one earlier this year by signing a contract to purchase a house that i later didn’t want. He got me out of that deal.
To dohicky, I was raised in Ahipara….house prices there are crazy.
Haven’t yet got a tenant as renovations are not complete. Should be finished next week. There is a nurse who is keen and willing to wait until all renovations are complete but we need to check her out. Just the fact she works is a good start.
I think Ahipara’s prices are crazy. Who would have thought prices in little ole Ahipara consisting of 500 people would sky rocket like they have. Prices are like Sydney and yet their average wage is that of low income earners here. Who would have thought.
Once I get a tenant, I exprect to charge $180 plus $10 for water pw. This is a three bedroom fully renovated house.
sorry, didn’t answere all your questions. I purchased this property in Allen Bell Drive…yep not a good area. this is my second IP in this street and my other one is doing fine. Yes they are both positive. The trouble now is that this street is 50% rental. This house I just purchased is in the middle of two houses owned by a kiwi who lives in oz down the road from me. Although this street is not the best, investor seem to love it. No good for the yourg locals who are now finding house prices out of their reach.
glad to hear you are sorted with your $82k needs 10-15k work in Allen Bell drive.
As far as “I would never in a million years think of investing in Kaitaia, ” goes, I have so experienced that before, don’t they say “the locals are always the last to know what they had going on under their nose!”
Who are you using for a rental manager and are they good?
I’m using Ray White (Mark Saxton). They seem to be ok. Marilyn is pretty careful who she leases your property out to. I myself would have gone with LJ Hooker but because my father inlaw spoke highly of her I had no choice.
As for my 82k mortgagee with repairs of 10-15k, it was a lot less than that even though we put in a new kitchen, carpet, lino and completely renovated inside and out. It really does help having local contacts and ……a father-inlaw for a builder.[biggrin]
allen bell drive is a long street, not too bad from what I remember, a lot of friends from school lived in that street and I’m almost certain most of their families were renting. the streets behind allen bell drive i remember being quite nice. Thats quite a way from the hospital (in kaitaia terms, all of four mins drive I bet) So good to see a stable income like nursing interested in the area.
Mini – my comment was not that I wouldn’t invest there, just that it would never have crossed my mind in a milion years to look for IP’s in Kaitaia. I’m getting a bit more interested in it seeing the rental returns for properties there $180 is an awfully good price. i guess I’ll keep my eyes open for more mortgagee sales! (less previous owners) [exhappy]