Caveat(s) on mortgagee sale

[13910]

Hey guys,

Hoping for a little advice, I'm looking at purchasing a property at auction which has eight (sounds like a lot) of caveats on it. The mortgagee is exercising their 'power of sale' and I'm just wondering what I need to know about this process/would be interested to hear other's experiences.

I presume the first bit of advice people will give is to speak with a solicitor?

The majority of them have 'loan agreement between x as lender and y as borrower' listed as the nature of estate/interest in land. One has nothing listed, the other has 'equitable interest under contract for the sale of the whole land at location'.

How worried should I be about these? Is it pretty standard procedure for a mortgagee sale where someone has obviously gone bust?

Cheers
Greg

PS I probably should have put this in the legal section, but can't move it. My mistake.

 

[battler]

All financial caveats would be removed at settlement.

 

[Ausprop]

the other has 'equitable interest under contract for the sale of the whole land at location'.

this is an interesting one. if the property has been sold to somebody already, wouldn't that sale stand?

 

[Project1080]

This is an interesting one. I've bought 2 properties mortgagee sale and one (PPOR) was where the vendors were in financial trouble but we didn't know how bad. Anyway, aside from 1st & second mortgages, there was acouple of caveats. Legal advice was all will be ok and will be cleard on settlement. Wrong! 8 days out from settlement, vendors declared bankruptcy. All seemed to be ok and mortgage holders came to party and wore loss. Come D-day we found out that one caveat was refused to be lifted. Turned out is was previous RE Agent seeking advertising costs. To cut a long stoy short, we threatened to excercise our right to walk unde rcontract terms and current RE Agent paid out caveat from their commission. Stressful but worked out in the end. All this on the Friday of a long weekend.
So my advice is, "Go through it with a fine tooth comb before committing".

Project 1080.

The project: 10 IPs in 80 mths.

 

[Propertunity]

In this case I'd be using Title Insurance - your solicitor can probably sell you a policy. There are a couple of threads on it in the SS forum here......or google it.

 

[Nathan]

Be careful as some lenders will not settle on properties when they dont have clear title. Had a client recently come across this dilema.

Not giving advice on this one, but talk to solicitor. I belive should be removed at settlement, but have heard you have to apply after settlement.

Goodluck.