This afternoon two further properties sold by Mortgagee Auctions. The two properties of 24 Tuiti Street in Waitara and 28A Record Street in Fitzroy went up for auction at 5:30pm today at our Auction Room in New Plymouth. There was a very large turn out of people who were obviously out to hopefully bag a bargin.
This is what Wikipedia says about a Mortgagee Auction:
Mortgagee auction is the term used in both Australia & New Zealand to describe a property foreclosure auction. It is the process by which real estate is forced to auction by a bank or lending institution. This normally happens when the borrower defaults on their mortgage. Although the term “foreclosure auction” is the most common terminology in America for this type of real estate sale, this is not so in either Australia or New Zealand. In these two countries, the term that is recognized by both real estate agents and property investors alike is mortgagee auction.
The advertising for 24 Tuiti Street, Waitara was:
A PROPERTY WITH POTENTIAL
On a rear 948 sq metre, fully fenced, FREEHOLD section, sits a tidy 3 bedroom home with a double garage.This property is a must view if you are contemplating adding to your property portfolio or about to begin your journey into property ownership.
This property was Auctioned publicly first and sold for $175,000 with bidding starting at $150,000 there were two bidders bidding on this property on the night which is much less than I thought would have turned up considering the lower end of the price bracket this property was in.
The advertising for 28A Record Street, Fitzroy was:
SMASHING HIT ON RECORD
Mortgagee Auction, With an easy walk to the beech and town this is the perfect property for someone looking to enter the popular Fitzroy location coming up to summer. Low Maintenance with two bedrooms and open plan living and a single garage, this property wants you.
This property was Auctioned publicly second and sold for $205,000 with didding starting at $120,000. With two strong bidders bigging against each other. One of these bidders was on the phone. I was again surprised to see only two bidders as this property is in a prime location and had a lot of potential to make very nice.
I personally dont like to see mortgagee sales. They are on the increase. This was the third one to actually go to Auction with us at Harcourts in the past 2 weeks. The first one being 371 St Aubyn Street. Mortgagee sales are a fairly sad time as it usually means that the owner has not met their mortgage commitments and the lender has taken over the property to recover the money they have lent on the property.
The best advice I can give someone is if you are getting into a situation where you are falling behind on repayments take action quickly and try and sell your house before the lender does. Aquire professional advise early in the piece from your solicitor, accountant and your real estate professional. By taking proactive steps you may save yourself huge worry and in some cases a lot of money.
2 thoughts on “2 Mortgagee Sales Sell at Harcourts Auctions in New Plymouth”
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Mortgagee sales are part of the deal, you take the risk if you fail you pay the price. People that are in a position that they can’t handle they need to get on to their bank managers ASAP, to get them on side and let them know what you are trying to do. It will save the feeling of loss of control and at least you have the option to settle on your terms. No-body likes the idea of your home been sold from underneath you, but someone has to call it when people can’t keep their obligations.
The buyers are out their but buying at mortgagee sale is not for beginners. They need to be on the ball and understand the process, have all the issues in order before the auction and it is alot of work to put in. The pay off is good for the people that put the money where their mouth is and understand the situation.
Are you getting many buyers enquiring about these types of sales at the moment?