coffengParticipant@coffengJoin Date: 2012Post Count: 1Property TraderParticipant@property-traderJoin Date: 2002Post Count: 111
In Australia , to my understanding the banking industry needs to be PERCEIVED as doing the right thing in achieving fair market value for the property. In one of those mechanisms, to achieve it is to take the property to the market by the auction process. Where it gets advertised to the general market, has time to attract potential buyers/bidders in an auction day and seeks to achieve the best price possible. Therefore in effect, the lender has done its DUE PROCESS in getting fair market value to the house.
However if there are hardly any bidders at the auction; and the highest bid is way below the market and is sold, then BY PROCESS the lending institution has done everything in its power to do the right thing for the previous homeowner.
That is how I understand it, I could be wrong.
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