teambwr47

Anyone done this yet and know how the system works?

There are some very nice homes coming onto the mortgagee market at the moment as the housing situation catches up with all income levels. From what I understand the houses can be available at way below value if there are few offers at the time of the Mortgagee auction.

Anyone here bought a house from a mortgagee sale recently?

One thing that puts me off is mention of the buyer maybe having to evict the owner which seems weird. I assumed a house would be vacant when sold by the bank but maybe thats not the way its done here.

cally49

Hi there i cant really help you with this much however i did want to pass on something that i read on the trademe forum about mortgagee sales and that was that when purchasing a property at a mortgagee auction to be aware that all outstanding rates etc are paid up before you buy also to have insurance in place immediately. If you go on the tradme sites and look though the community forum you will see a section for real estate have a scroll through and see if you can find it.

Hopefully someone else may be along that knows more baout this shortly i just thought id pass on what i read.
Cheers
Cally

Am Loolah

The trademe chat rooms are quite handy as Cally said! Probably also worth having a scout at www.reinz.co.nz and see if there's any info on the Real Estate Institute site.

I found this in some old notes;

“One of the features that distinguishes mortgagee sales from ordinary sales is the fact that the existing home owners interests are not the same as the mortgagee selling the home. The home owners may have finance owing on household appliances and may try to salvage value out of house fittings before relinquishing possession. It is not uncommon to find some homes sold in mortgagee sales literally stripped on the day of settlement. This will include such things as bathroom fittings, spa pools right down to original Tawa flooring, rimu joinery and kitchen cupboards! In order to avoid this situation a purchaser should be aware of exactly what fittings and chattels are included and obtain advice on how to conduct an inspection immediately before settlement. In some cases funds may be withheld if fittings and chattels have been damaged or removed. However, if buying at auction, when the hammer falls you’ve bought the property unconditionally and usually the mortgagee will have the contract worded to not guarantee the chattels if indeed any are listed.” – Adapted from solicitor’s article on file.

Suffice to say, most mortgagee auctions will see high turnouts, particularly from developers and investors – all hoping for a bargain. But remember, just because it’s a mortgagee sale does not mean it will necessarily sell below market value.

Definitely get a good agent to guide you through.

Avid

Yes, I know how you feel. I used to be a grave robber before I moved to New Zealand and was always horrified to discover just how smelly and icky the bodies were when I finished digging them up. You'd think they would have made some effort to preserve the corpse before burying it!

Then again, if you are going to feast off other people's misery, I suppose you just have to take what you can get.

Check Trademe for second-hand hammers. They are especially good for getting the pensioners fingers off the door frames as they desperately cling on to the home you are throwing them out of.

lapsed kiwi

You made me laugh! I remember viewing a mortgagee sale house in Plymouth in the early 90s. The evictees had removed a gas fire by cutting the pipes with side-cutters, and stripped the kitchen bare. Quite off-putting

SavBlancGal

There's some info on the second page of this article about mortgagee sales.

http://www.nzherald.co.nz/category/s...ectid=10528531