Mortgagee sale preauction offers?

Hi,

I was wondering if banks actually accept preauction offers for mortgagee sales or do they just want to see how much people are prepared to offer?

Also do agents usually quote the rough estimate of the auction price well below what the property would sell for? Because previously from experience I was interested 3 mortgagee properties, and the amount estimated by the agent was well below the selling price for all 3 of those sales.

Thanks.
 
I was wondering if banks actually accept preauction offers for mortgagee sales or do they just want to see how much people are prepared to offer?

I think you'll find that if is a mortgagee-in-possession (MIP) sale it will need to go to auction because:
1. The MIP may have an action brought against it by the previous owners if the MIP accepts an under-market price. The only way it can be seen to do the right thing is go to market with a proper campaign.
2. Why would the previous owners bring an action? Because the MIP may not recover all the monies it is owed.....and if not, the MIP will claim on MI ......then the MI will come after the previous owner. Likewise if there is sufficient equity in the property and the MIP does not need to claim on MI, then the previous owner is owed some cash balance and they may argue for more being owed to them.

Also do agents usually quote the rough estimate of the auction price well below what the property would sell for?
Unheard of!! :)

Because previously from experience I was interested 3 mortgagee properties, and the amount estimated by the agent was well below the selling price for all 3 of those sales.
These days their are laws regarding under-quoting. There are lots of threads on this.

Cheers.
 
Hey thanks Mr Quimbie for the response :D

I thought that bank wont accept pre auction offers but the agent says that we can put in an offer and its possible that they will accept it. I guess they might be saying this to see what people are willing to offer......


I think you'll find that if is a mortgagee-in-possession (MIP) sale it will need to go to auction because:
1. The MIP may have an action brought against it by the previous owners if the MIP accepts an under-market price. The only way it can be seen to do the right thing is go to market with a proper campaign.
2. Why would the previous owners bring an action? Because the MIP may not recover all the monies it is owed.....and if not, the MIP will claim on MI ......then the MI will come after the previous owner. Likewise if there is sufficient equity in the property and the MIP does not need to claim on MI, then the previous owner is owed some cash balance and they may argue for more being owed to them.

Unheard of!! :)

These days their are laws regarding under-quoting. There are lots of threads on this.

Cheers.
 
I am just saying that on two occasions the agent has said the bank might accept a preauction offer on a mortgagee sale. When I made the offer they always come back saying that they will go to auction....

What are you insinuating? :rolleyes:

Ya think? :) :)

Remember, REA's are working for the vendor
 
I have never seen a mortgagee sale accept an offer before the auction. I think it is part of them being impartial and letting the market value the proprety.
 
I am just saying that on two occasions the agent has said the bank might accept a preauction offer on a mortgagee sale. When I made the offer they always come back saying that they will go to auction....

Sorry eternit,

I was being sarcastic - of course they cannot accept a pre-auction offer as jasper says too.

"What are you insinuating" is a Catherine Tate phrase. I was TIC supporting our REA brothers :)
 
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