Types of Mortgagee Foreclosure
Moreover, it is of paramount importance that you only deal with seasoned experts in this segment of the real estate market. Buying into the mortgagee property market place is difficult and if you do not posses the specialised knowledge and skills sets, you will end up loosing on the real estate investment.
A high percentage of the time, a lender, property developer or investor will contact us before the bank commences recovery of the property asset with the legal process of foreclosure and, the mortgagee taking possession.
Different segments of the property market are plagued by massive over-supply and falling valuations. Banks are frequently notifying borrowers that the valuation for an exisiting loan has fallen below the banks LVR. In precincts of over-supply lenders are demanding additional equity to support the loan facility of 10%-20%. In many circumstances this places the property investor under financial duress as they cannot afford to ‘top up’ the bank loan 10%-20%.
There are many types of sales that can be categorised as a “foreclosure sale”
Real Estate Owned (REO) Foreclosures
When a property is said to be under “REO foreclosure”, it means that the property owner has already defaulted on the mortgage. In many instances, home owners are forced into REO foreclosures when they are foreced to find a buyer themselves. As a result, the homeowner (not to mortgagee) will put up the property for sale.
Bank Mortgagee in Possession
This type of foreclosure occurs when a homeowner defaults on the mortgage they received through a bank. In these instances, the homeowner can no longer meet the terms of the mortgage and the bank takes ownership. The bank will list the property for sale to get back some of the money they lent to homeowners.
Listings include real estate in government and bank foreclosures, and pre-foreclosures. Among the information listed on MortgageeProperty.com will include the location, valuation price, and photographs. MortgageeProperty.com is an effective way for mortgagees to recover loan debt quickly.
Frequently Asked Questions
Where did these properties come from?
The properties listed in the site came from mortgagee repossessions/defaults, government housing authorities, State & Public trustees, receivers, administrators, liquidators, beneficiaries of wills, and company and personal bankruptcies among others.
How many properties are available?
The number varies depending on the time of year as well as the general economic environment. Our database is regularly updated to bring you the latest offers in the market.
Can I get a loan for a Mortgagee Property ?
Yes. It is possible to get financing from any lending institution in the country (subject to approval) if you wish to acquire mortgagee properties.
What property markets are covered ?
Mortgagee Property Limited trading as MortageeProperty.com covers Residential, Commercial, Industrial, and Rural markets in the whole of Australia.
What part of the Australian real estate market do you list on MortgageeProperty.com ?
In the commercial and industrial segment, we include mortgagee repossessions, liquidators, receivers, and administered properties. In the residential and rural segment, we list mortgagee repossessions, housing authorities, and deceased estates.
What types of properties are listed on on MortgageeProperty.com ?
All types of properties, from villas, townhouses, apartments, land, office development sites, and factories are listed.
Why do the properties seem cheaper than normal ?
When the homeowner defaults on the loan, the lender can seize the property. The main concern of any lender is to redeem the amount of debt owed which is typically lower than the value of the property. With regards to deceased estates, new beneficiaries may be keen to cash out on the property.
What condition are the properties in ?
Mortgagee repossessions are usually in good order. However, if it has been left empty for some time, the new occupant will need to conduct thorough cleaning and decorating. Deceased estates may require more work and are priced accordingly.
How can I view the property ?
If you wish the view the property, this can be arranged with the respective real estate agent. Our site can provide the contact information.
Do I need Insurance ?
Protect your property with the appropriate insurance. Aside from getting the minimum required coverage, consider getting home and contents insurance. It will protect both the building structure and the contents inside the house. If the property is located in the flood-prone area, ask the insurance company if they can provide flooding coverage as well.
Does Mortgagee Property Limited have a vested interest in these properties ?
We do not have any vested interest in any property listed on the site, we simply paid a fee to offer the property to our clients.
Are the same listings available on other websites ?
Yes, some of the properties listed here may also be found on other websites. However, we aim to provide the most comprehensive guide for buyers and investors in Australia. Our sophisticated searching method ensures that you’ll get the most updated information available.
What is the staff policy of Mortgagee Property Limited ?
The key to delivering extraordinary business lies in developing leadership and teamwork at every level of the Mortgagee Property organisation. Building on the most trusted practices of management, we will instil an in house philosophy for achieving new and higher levels of service. We will utilise various workforce mobilisation techniques to encourage our staff to move far beyond compliance to an authentic feeling of ownership that promotes full participation and cooperation. We will create a culturally diverse environment where the committed action of each employee will be recognised and applauded, producing staff leaders who yield incredible results in customer service and professionalism. Mortgagee Property will thrive on open communication, offering clarity to questions and immediate feedback on job performance.
What is the Benefits-Risks Analysis ?
One of the main attractive of real estate is that it provides a tangible asset while giving you a chance to build your wealth through appreciating property values. There may also be taxation benefits available depending on your area. Like any other investments, there are some important considerations you need to look into. These include legal fees, stamp duty, loan establishment fees, holding costs, interest expense vs. income expectations, and the possibility that the property may be left vacant for certain periods.
What is Negative Gearing ?
Most people who purchase an investment property usually expect to rent it out. It is said to be “negatively geared” when the income derived from it is less than the deductions you can claim. “Deductions”, in this instance, are the expenses related to getting that rental income which include the interest payment on the investment, taxes on the property, maintenance fees, and the insurance. Any loss can be claimed as a deduction on other types of income such as business or salary. Do take note that the certain costs such as stamp duty, legal costs, conveyance, and the purchase cost cannot be deducted from other income sources. The cost of repairs might also be excluded.
Is there Taxation ?
It is important to understand what deductions you can and cannot claim. Another aspect to consider is the capital gains tax which will be incurred if you decide to sell the property. Speak to your accountant to estimate how much this will cost. Visiting the Australian Tax Office website may also be helpful. In general, remember to: Keep records to show your income, deductions, and proof to show ownership of the property for at least five years. Keep personal and investment borrowing separate. By keeping the loan separate, it becomes easier to calculate the deductible interest.
What is a Mortgagee Foreclosure ?
Foreclosure is the process in which the lender gets a legal termination of the mortgagor’s equitable right to redemption over a property. The process can proceed either through a court order or by an operation of law. To understand foreclosure, it is important to have a basic idea how mortgages work. Basically, the lender needs to get a security interest from the home buyer who pledges his asset as collateral to secure the bank loan. If the borrower defaults on the payment, the lender may have the right to repossess the property in question.
Want is the Mortgagee Investors Club ?
The Mortgagee Investors club is a syndicate of high net worth property investors managed by Mortgagee Property Limited to acquire large quantities of Australian property investments.
What is 'Short Sale' Pre-Foreclosure Alternative ?
Short Sale option still requires you to sell your property but you can do so at fair market value or less. If you are a struggling homeowner, you may qualify for a short sale. Among the information that should be presented include hardship letter, financial data, and purchase and sale agreement (attached to the lender forms). If approved, you can sell your property as a short sale. The lender will take a loss on the difference between what you owe and the fair market value of your property.
What is 'Forbearance' Pre-Foreclosure Alternatives ?
Forbearance is an agreement between you and the lender which will allow you to catch up on mortgage payments over an extended period of time. The amount of payment (on which you are behind) will be spread over several months until you catch up on the obligations. While this is a good option, it doesn’t present a long-term solution for borrowers whose financial problems are more than temporary.
What is 'Loan Modification' Pre-Foreclosure Alternatives ?
Loan Modification provides a new loan to the property owner without refinancing. Depending on the type loan you have, there are instances when the government may require the lender to modify your loan. Few people get this reprieve and there is a chance that your property will slip into foreclosure while you’re waiting for approval from the lender.
What is 'Rent the Property' Pre-Foreclosure Alternativesy ?
Rent the Property is for homeowners who can’t pay the mortgage now but still wait to maintain ownership, renting is an ideal option. Becoming a landlord allows you to pay off your mortgage every month. If the amount you get from the tenant is higher than the mortgage, you’ll also have money left over for other expenses.
What is 'Sell the Property' Pre-Foreclosure Alternative ?
Sell the Property is a good option if you have significant equity in the property, it is possible to sell the house at a discount. The amount you get from this is likely to be higher than if the lender repossesses your property.
What is 'Bankruptcy' Pre-Foreclosure Alternative ?
Before filing for bankruptcy, it is important to consult with an lawyer. Always remember that bankruptcy should be the last resort because it will affect your credit rating over the long term.
What is 'Liquidate Your Assets' Pre-Foreclosure Alternatives
If you have stocks, certificate of deposits, or even pension, you may ant to consider liquidation. It will allow you to avoid foreclosure. Consider borrowing from family members or even getting a part time job to pay off your debts.
What is 'Deferment' Pre-Foreclosure Alternatives ?
Some lenders may allow you to defer mortgage payments you’ve missed on. You can, instead, pay a lump sum amount at the end of the mortgage term. This option is best for individuals who can afford to resume regular mortgage payments but don’t have the funds to catch up on missed payments and penalty fees.
Mistakes to Avoid - Insufficient Research ?
Before parting with your hard-earned cash, invest time and effort in conducting research. There are varying considerations depending on your reasons for buying the house. Some people buy to become a homeowner, others want to be a landlord, a real estate flipper, or simply wait it out for the property to appreciate before cashing in on it. Whatever the case, there are some questions you need to ask including the following:
Is the property in located in a flood zone? Is it vulnerable to termite problems?
Is the property located near a commercial area and will construction occur in the near future?
What must be replaced in the property?
Why does the homeowner want to sell?
Are there problems in the community you should know about?
What are Directors duties and responsibilities?
The Directors of the syndicate are responsible for the corporate governance of the syndicate and acting in the interest of and for the benefit of shareholders. In addition, overseeing the functions and performance of the company HK secretarial services to ensure the company is compliant with reporting, government rules and regulations.
Mistakes to Avoid - Poor Financing ?
The type of financing you get approved for may seem suitable for your situation now. Will it be suitable for the long-term? Many buyers who secure interest-only loans or variable loans usually pay the price when interest rates start to rise. It is important to have financial flexibility to allow you to deal with rate increases if it does occur. In some cases, you may be able to convert to a fixed-price mortgage after a certain period.
Mistakes to Avoid - Overpaying ?
Finding the right property is difficult, time-consuming, and stressful. So when a buyer finds a property that meets his specifications, his first instinct might be to get the seller to select his bid. Fight this urge because many make the mistake of overbidding on some properties. Do more research on the property values in the area and take the condition of the house into account. As a fallback, ask for valuation from a real estate expert and look at the rates of comparable homes in the local newspaper.
Mistakes to Avoid - Doing Everything Yourself ?
There is a lot of expertise involved in property investing. Even if you have done it before, it never does any harm to befriend a competent real estate agent, a handyman, home inspector, lawyer, and insurance agent. They can alert you to any possible flaw in the neighborhood. These connections may make the transaction easier and less stressful.
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