Hi all
There was one real estate agent in a popular Facebook group for properties sharing an xls showing no of distressed properties for sale in each state and suburb
Distressed properties are usually not advertised and unless it is a bank insiders job I see it difficult for this data to be made available
Am I right or this agent is just bluffing ?
real estate agent
Facebook group
Absolutely no good can come from this.
real estate agent
Facebook group
FTFY.
Real estate agent
Facebook group
Probably just reselling this site - https://www.realestatedealsaustralia.com.au/page/distressed-…
They just search for terms related to things that make them "distressed". I worked at a small lender once and there were controls on accessing the data around arrears properties, I assume the big banks have the same or stronger in place (I hope so, anyway. It would be an investors dream).
Has anyone used this? does it give for both east and west sides?
This sounds like a bit of a thing that I’ve seen online in the USA - property for pennies on the dollar blah blah blah.
I don’t have a view about USA, except to say promises of a $15000 home in a crack neighbourhood probably isn’t the bargain it could be.
In AUS, it is harder to believe, as we have good protections for borrowers, and a pretty professional set of lenders (backed by mortgage insurance etc.).
Basically, consider the circumstance where you would be a “distressed seller” in Australia. Sellers property is worth less than the mortgage? Possible, but they can’t sell because the bank holds the title.
Sellers have other liabilities, but hold a property without a mortgage? Why not go get a 50% mortgage from a reputable lender at a low rate? Are they trying to get cash to flee the country and any buyer will be under scrutiny in bankruptcy court?
Seller just wants a quick sale? Why don’t they wait 6 weeks for thousands of dollars more in a regular sale?
These days with unlimited access to finance and a very liquid market, the only real distressed sellers are for problem properties - scraps of land without building entitlements or in a block of flats about to get hit with $100k of sinking fund. Good places to stay away from.
The only way you're going to get a bargain from a distressed seller is if you are unconditional on finance. Short settlement and taking it with tenants can also help as can skipping the building inspection (not advised unless land value).
Speaking at Ennis on 19 September 1880, Parnell declared:
“When a man takes a farm from which another had been evicted you must shun him on the roadside when you meet him, you must shun him in the streets of the town, you must shun him in the shop, you must shun him in the fairgreen and in the marketplace, and even in the place of worship, by leaving him alone, by putting him in a moral Coventry, by isolating him from the rest of his country as if he were the leper of old, you must show your detestation of the crime he has committed”.
I think Churchill may have adapted from Parnell.
We shall shun them on the beaches.
(I could be wrong).
Yes that's why we won. The Germans and Nazi's hate being shunned. :o)
It wouldn't stop the Jews!
If you are referring to mortgagee in possession sales, they are marketed through normal real estate agents and via the normal sales channels.
You would be lucky to know it was one until you see the contract.
anything going at auction with no prior offers allowed big sign
vacant property with notice on windows sayings in repossession confirms it
found one before
I don't think number of distressed properties is an indication of anything particular if it's the same number that you tend to find in each suburb previously anyway. Some people will always overprice properties by like 30% or whatever. If the average property was 500k five years ago then they'll ask for 650k. If five years from now it is 10 million then they'll ask 13 million. The change in number of distressed properties in any suburb is more significant than they're just being distressed properties there.
I am sceptical.
I am also sceptical about "distressed" properties selling undisclosed. Yes, there are off-market sales processes, but if a lender is forcing a sale as an example, they would very likely proceed with a proper sale process, likely auction, as this would be the "best" price of the day.
I am also sceptical about any 'inside job' - again for the above reason i.e they would go through the proper sales process.
A lender won't take your home cause you couldn't pay the loan so they can offload it to a mate for peanuts. It just doesn't work like that and if it did - we'd be hearing it on 60 Minutes. Hence, an auction is the likely sales method as it is transparent as possible especially when dealing with some unfortunate person's life savings.
Even if it is a distressed property, it will still fetch market price as the banks will make them go through an auction. This is not a closing down fire sale, 90% off situation. The banks themselves are still financially sound, they have no incentive to rush a sale.
People need to apply some basic logic here.
You are in abit of a self delusion here. As far as the banks go they do not care how much a property goes for as long as it covers the mortgage that is owed. If they can sell a property day 1 and get their money back instead of day 30 and get much more for the property for the owner to get a good chunk of change, they will sell it day 1.
They have no incentive or any obligation to the owner to get the best possible price. They just want as fast a sale as possible while also getting their money back.
The lender has a legal obligation to sell the property at the highest possible value.
What does that mean exactly ? The highest possible value is subjective, should the lender wait 30 years to get the highest possible value ?
All that matters to them is to cover the mortgage, if the best offer is above that, then to the lender it doesn't matter.
@garetz: It means they have a legal obligation to get as much money as possible for the property. All that matters to them is getting the mortgage paid AND not getting the pants sued off them.
Banks follow a pretty standard process, they get a valuation of the property based on other properties in the area and set an amount based on that. Which means some lucky buyer might save 5%, but that's the same as any sale where the owners are moving house and have to sell, or it's an estate sale or whatever.
You probably need to apply some basic logic yourself. If you have a $1m loan remaining on a $2m house. The bank wont just sell at the 1st offer of $1m for the house. It has a proper process to go through and it will fetch market price at auction.
I don't get why a property would be advertised as 'distressed'. The seller wants the maximum price, right? Why put a big red flashing sign on your house that says 'I am desperate! Low ball me as much as possible!"?
I bought a house recently, putting that they had to be sold at auction got a lot more people to them than otherwise. And once people are at an auction, the heat of the moment often gets to them.
In California and some other states of USA, they have a system called "no recourse mortgage". If you cannot pay the mortgage, then you simply move out and return the keys. Your debt to the bank is cancelled. The bank then owns the home & they often wish to on-sell the house quickly, sometimes at a deep discount.
This does not happen in Australia. If you cannot pay the mortgage in Australia, the bank will repossess the property , sell it & and then go after the owner for any residual debt. There is a strong incentive in Australia for homeowners to negotiate with banks and sell the property themselves if in difficulties.
The agent is asking for a small fee to share this xls file ?