Mortgagee sale question

From: Owen .


Hi,

I have found out about a property that has just been repossessed by a bank because of a loan default by the owner. I know the tenant well enough to say 'Hi' to and she told me about this because she had been kicked out by the bank.

It's easy to find the owner but I was wondering if there is any way I can find out what bank was the one holding the loan? If I can find this out I may be able to approach them about purchasing the property. Anyone know how to find this info out? Anyone done something similar? Was the bank approachable or did they not want to know you?

I could ask the tenant if she knew but she probably just got a letter from an agent and I don't know if I should approach the owner or not. Any suggestions? It could be an opportunity waiting to happen.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 1
From: Land Holdings


It would have been nice to find out BEFORE the owner had to default on the loan. You could have made a quick sale and would have helped the owner get out of debt and you would would have a new IP that was heavily discounted with a happy tenant.

Alas, I think that you will now have to wait till it is sold in the normal way as a foreclosed loan unless you can find out which agent the bank is dealing with and get in with a good offer first.

Good Luck!

LH.
 
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Reply: 1.1
From: Robert Forward


From memory, there are laws stating how mortgagee sales are to proceed, I can't remember what they were though.

But usually the banks won't got and dump the property (unless it's in a dump of an area), as they still want to get "their" money back. This is why mortgagee sales are processed through normal real estate agents, that is in NSW anyway. And the RE Agents will still try to push the best price possible.

As Land Holdings has said, it's probably best to try and get into a pre-mortgagee property.

Cheers
Robert
 
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Reply: 1.1.1
From: GoAnna !


Hi Owen

A copy of the title will indicate who has a caveat/security over it. You should be able to find the bank this way. With any luck the property has not yet been passed to an agent.

Good luck!

GoAnna !
"Obstacles are those frightful things you see when you take your eyes off your goal."
-Henry Ford
 
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Reply: 1.1.1.1
From: Owen .


Thanks GoAnna. I'll give that a go.

I'm aware that it's better to get to the vendor before they default but that isn't the scenario in this case and funnily enough, as he doesn't know me, he didn't call me first. Hopefully getting to the bank first may bear fruit. If not, I can track it through to the agent and the sale and learn how the process works for the future.

At the very least it will be an interesting exercise and I'll let you all know how I go.



Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 1.1.1.1.1
From: Anony Mouse


Owen
I think Robert is on the right track with this scenario.
From memory banks have two avenues available to them, 1) manage the property themselves,
similar to a receiver manager situation, or 2) liquidate.
The first scenario involves regularity issues which the banks generally don't want to get involved in.
The second is much simpler from the banks point of view.
However they generally liquidate at arms length to avoid suspicion,that they are giving preferential treatment to anyone.
So unless there are special circumstances, the property will go to auction.

"A government that robs Peter to pay Paul can always count on the support of Paul."
Of course, Paul's support is obvious, but it is equally obvious that to rob from Peter to pay Paul will make Peter
very, very angry.
My question is this: "How can you run a good government with a sore Peter?"
 
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