mortgagee sale - HELP

[UrbanPlanner]

My partner and I are wanting to put an offer in on a mortgagee sale - It's listed at 470k but the agent said that the bank would probably accept anything with a 4 in front of it. The owners bought it for 400k in 2007 and have done a partial reno to the kitchen so i couldnt imagine the bank could need much over 400k to cover the debt.

Anyway, because its a mortgagee sale, the bank wants offers with no conditions - so no building/pest inspection clauses. There will be a subject to finance clause though. The house was built in 1965, additions were done around 1998 and then there are recent renos that have started. Therefore, is it too big a risk to offer on a place with no building/pest inspection clauses? Or do you think that given that the previous owners have only been there 3 years and have renovated etc, that it could be assumed that they had the inspections done when they bought and it came back ok??

Your input is much appreciated

 

[Rolf Latham]

Hi UP

have the place inspected

then make ur offer

ta

rolf

 

[UrbanPlanner]

Thanks Rolf. Yeah thats what I think too, but just not sure if the agent/bank will give us access to the property to do it?? The agent also said she has 2 offers already which she will present to the bank tomorrow (she could be playing us) so time probably isn't on our side.

I might contact the agent and confirm what we can/cant include in the offer and if we can arrange inspections asap before we make an offer. I'd hate to have the inspections done only to find out the bank has accepted someone elses offer in the mean time.

 

[UrbanPlanner]

Update: the REA said the bank was happy to look at offers with conditions for building/pest inspection but should something arise, they wouldn't fix it, which is ok as it still covers us and gives us an out.

The agent is writing up another person's offer at 5pm (apparently) and then coming over so we can draw up our offer, is there any way that we can get a scope for what the others was, or if ours would beat it?? I purposely had her come to us last for that reason..

 

[skater]

i couldnt imagine the bank could need much over 400k to cover the debt.

Whatever the bank needs is irrelevant. They have a duty of care to get the highest amount they can. Just submit your offer on what you believe is fair and reasonable, the same as any other property.