Anybody know of a new law?

[Pa1nter]

I went to a Repossession auction on a property that I was interested in.(Dump)
During the weeks before the auction,
I did my own building and pest,
Brought in my builder friend to check it out,
Checked out all the previous street reports (Sales)
This property sold in 2007 for 155K,(Livable then)
Discreetly found out the bank involved
Discreetly found out the previous owners history

D day,no registered bidders except me
I hate Auction terms so I didn't bid,I waited until after the Auction and made sure an offer made then was not considered Auction terms.
I was told if I made an offer then,it would be on Auction terms.

I left and Faxed Monday morning Offer $155K 21 day no conditions settlement.
It was flatly refused,now remember this property was sold in 2007 for $155K,
Market value was around 200K.However this house need $30K on it to make it livable again.No town water,asbestos roof ,no kitchen,very rough through out.

I have been told of a new law that banks cannot sell these houses for 15% less than Market value

Now I was willing to go higher (180K) but out of principal when the bank didn't come back with a counter offer,I walked.
I still haven't heard back from RE,now it is on the market for $234K See below

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=29542538&s=qld&tm=1260267165

 

[jrc]

Section 77(1) Transfer of Land Act permits a mortgagee to sell the land by public auction or by private contract, the requirements to act “in good faith” and to have “regard to the interests of the mortgagor,” make it prudent for a mortgagee to sell by auction, at least initially. The authorities have held that the statutory requirement to act “in good faith and having regard to the interests of the mortgagor” places an obligation on the mortgagee to engage competent and suitably experienced estate agents; not to delay the sale and to sell the property in a timely manner, as well as carry out a suitable advertising campaign. Section 77(4) that provides that if the power was “improperly or irregularly exercised” the mortgagor may claim damages.

I would think the 15% is a rule of thumb rather than a legal requirement

 

[Pa1nter]

I would think the 15% is a rule of thumb rather than a legal requirement

I am being led to believe it could be now more of a legal requirement or an ask from the government to keep people from going belly up?
Is there any way to find out for sure ??.

I use to buy at Auction for half market value once.
Sure takes the fun out of auctions now

I believe if someone has the money or means to get the money in these unsure times,they should be able to purchase at a fair price

 

[L and P]

I have no experience in this and don't know the rules but would it be possible to approach the owner and make your offer of $155 000 - $180 000 (choose your figure) for a private sale ?

 

[moyjos]

In the dim dark recess of my mind... I do vaugely remember Captain Bligh maying an announcement of this quite some time ago at the beginning of the GFC.

From memory it was to stop the banks foreclosing and selling for only what was owing. (eg a 500K home might foreclose with only 150K owing)
The reasoning was that such low sales would effect the overall average of house prices to the detriment of those who weren't in trouble.

I can kind of see the logic...it would not be good if a whole suburb of "McMansions suddely only has a saleable value of $150-200K. Practically, I really don't think it would happen that the banks would foreclose if there was HUGE amounts of equity in a house.

 

[jrc]

This might be part of what you are thinking

http://www.hdy.com.au/attachments/Banking_Jan2009.pdf

 

[Perp]

I think it's good that Australian law requires mortgagees to act with some regard to the mortgagors' interests. The fact that US law has virtually no such similar requirement has caused property prices to fall "more dramatically than necessary" in some areas. It feeds on itself and sends markets into death spirals when properties are sold substantially below market.

 

[Belu]

if it doesnt stack up at over $180k dont worry about it. they want 30% more than your max offer so walk away and worry about another property

 

[Pa1nter]

if it doesnt stack up at over $180k dont worry about it. they want 30% more than your max offer so walk away and worry about another property

Done already
I don't wait for no man or Bank!

 

[Pa1nter]

I think it's good that Australian law requires mortgagees to act with some regard to the mortgagors' interests. The fact that US law has virtually no such similar requirement has caused property prices to fall "more dramatically than necessary" in some areas. It feeds on itself and sends markets into death spirals when properties are sold substantially below market.

I also believe it is good,however that's only when I am in trouble,in the meantime show me the bargains

 

[Pa1nter]

I have no experience in this and don't know the rules but would it be possible to approach the owner and make your offer of $155 000 - $180 000 (choose your figure) for a private sale ?

This house has been repossessed by the bank,same as the mans car,credit card and all his worldly goods.

 

[cu@thetop]

I just settled a mortgagee sale for a buyer client where the price achieved at auction was 1.6mill and the UCV of the vacant land was 1.82mill.

It would appear the agent is is talking crapola. Do a title search, find the mortgagee and ask who the mortgage insurer is handling the sale and talk directly to them.

Don't post identifying specifics on this forum if you are still interested. Too many sharks- remove the link.

 

[Pa1nter]

Don't post identifying specifics on this forum if you are still interested. Too many sharks- remove the link.

I,m done with it,so I don't mind sharing my feelings on the subject.
Loose lips sink Ships
1.8Mill down to 1.6Mill,what percentage is that?
Someone got a calculator?