I have a couple of theories regards mortgagee sales.
1. Borrowing too much in the first place. They were only fooling themselves they could afford to buy.
2. People get caught up in th 'equity mate' scenario and then find themselves in trouble.
3. Life circumstances (underlying at all times, death, divorce, loss of job).
People who find themselves in situations 1 & 2 try to avoid the reality and delay putting the property on the market.
By the time they list they are desperate to sell, and don't have the time for an extended campaign.
With the market falling they are unable to get the price they need (a rising market can cover up their ineptitude).
They're unable to sell or make their payments and the mortgagee moves in.
We have bought a couple of properties at mortgagee, and we have seen properties passed in at prices in excess of their estimated value (probably due to 'equity mate').
It is impossible to avoid life's circumstances. And it is sad when you have to sell because of these reasons (we have been there).
However when I read these articles and hear people blame the banks because they were able to borrow for a holiday and now the holiday is over; well, it makes me mad.
Regards
Andrew