Repossession issues

[Smouch]

I am curious if anyone knew how banks sell the houses they repossess?
Is there anyway of knowing if the house you are buying has been repossessed and sold by a bank?
Is this something that a real estate agent would need to disclose?
Are there any extra legal/conveyancing issues that would need to be considered?
Has anyone bought such a house or has anyone heard of previous tenants that have caused any grief to the new owners?

Cheers

Smouch

 

[BV]

I am curious if anyone knew how banks sell the houses they repossess?
Usually through their preferred real estate agents
Is there anyway of knowing if the house you are buying has been repossessed and sold by a bank?
Often the REA will disclose this information, these properties mostly go to auction
Is this something that a real estate agent would need to disclose?
I don't know if they have to tell people but the ones I have been dealing with had no problem disclosing this info
Are there any extra legal/conveyancing issues that would need to be considered? As most properties are auctioned you will need to do your inspections & searches in advance. If they don't go to auction the Vendor could request that you drop the cooling off period
Has anyone bought such a house or has anyone heard of previous tenants that have caused any grief to the new owners?
I have, generally any damage or neglect would have been done before they vacate.
I never saw previous owners.
Most people would be trying to get their life together after such a shock and would not be interested to cause any problems.

Cheers

Smouch

See answers in red

 

[grossreal]

hi
1 little bit advice make sure that you get clear title to the property and that the liquidator or administrator does cover you for clear title and do not buy as is or buy as you see it.
when buying this type of purchase remember that the property has issues or the ex owners have issues
and just because you are the new owner does not mean those issue go away and you need to be given very clear paperwork that you have clear title
and that if there is any come back that the liquidator or administrator is there with you if you need should you have a problem( as usually they are not).
people think that because they buy at auction from a liquidator that every thing is crystal clear
well it is if everything goes ok
but if the roaches come out of the wood work you need some thing to say I got clear title and talk to this guy.
I buy from liquidators and havn't had any real issues except a few heavy people with very short hair cuts but once explained and shown the paperwork they have been fine.
even had a couple of sherifs that a liquidator forgot to tell but no great problem.
real estate job is to sell and they tell you almost everything some more then they should.
I don't buy at auction to much competion for me.
but as bv posted most people are more interested in what you or some one is willing to pay so they can get on with there life.

 

[BV]

In regards to the clear title, that's what you are paying the solicitor for.
Cheers

 

[FelixL]

Repossessed properties usually have the following signs

• property goes to auction
• vacant possession
• a repossession order stuck onto the door
• request 10% deposit and 30 days settlement

The agent has no way to hide this information, since you can request to see the front page of the contract, and there it will clearly state the vendor is the mortgagee.

From my experience, mortgagee sales can often fetch higher price than normally. Everyone expects a bargain so interest will be high, and at auction time people get overrun by emotions and bid a high price. Therefore realestate agents usually don't mind disclosing the property is a mortgagee sale, in fact some even try to use it as a selling point.

If you are looking to pick up a bargain from mortgagee sales, stick to the mortgage belt suburbs where there are loads of repossessions and little buyers (mostly scared off by the media). For good suburbs that occasionallly have a mortgagee sale or two, its almost guarranteed the auction will end in a fair price or higher

 

[fernfurn]

One last Saturday, the owners had ripped out everything, stove, dishwasher, ducted heating, anything of value. RE expected to get $220. $235, spirited bidding, it went for $275 Agent still scratching head, but new owner said hewas going to renovate anyway, saved him the trouble of ripping stuff out. Go figure

 

[skater]

I have bought quite a few with mortgagee in possession. Bargains can be found, but it all depends on the timing. In a rising market I would stay clear, but in a flat market, if there is little interest & the reserve price is low, you will do well.

 

[Smouch]

thank you all for helpfull feed back

All good food for thought. Your experience has confirmed my thoughts so I thank you all for taking the time to respond.

Smouch

 

[Aaron Sice]

i knew a bloke once who thought it would be awesome to buy an IP in his name, then not pay any money out. the bank would repossess and then he could "buy it fire sale prices" with his trust.

i warned him against it, but he did it anyway

later realised that no bank would lend to his "trust" because he (the defaulter) was the sole beneficiary.

now, he can't secure a loan, and either can his trust.

some people you just have to let go.

 

[skater]

i knew a bloke once who thought it would be awesome to buy an IP in his name, then not pay any money out. the bank would repossess and then he could "buy it fire sale prices" with his trust.

i warned him against it, but he did it anyway

later realised that no bank would lend to his "trust" because he (the defaulter) was the sole beneficiary.

now, he can't secure a loan, and either can his trust.

some people you just have to let go.

ROTFLMAO!!!!