TVNZ’s CLOSEUP program – Mortgagee Sales Article
Mark Sainsbury from TVNZ ran a CLOSE UP programme about the risks of buying a mortgagee property. The program tonight suggests some of the risks buyers of mortgagee properties take.
Mason Parker’s advice:
- factor in the risks in your offer (eg if damage occurs or if chattels are not onsite can you cover those costs?)
- suggest changing the locks on acceptance to add further security
- have your solicitor approve any mortgagee purchase deal before confirming (or even before signing)
- do your homework before making any offer LIM’s, PIM’s view code of compliance etc
- it is impossible to take away all risks – make sure you take measured risks where you are aware of the pro’s and the con’s – if you are not comfortable with risks on any property simply don’t buy it!
See the program here http://tvnz.co.nz/close-up/mortgagee-sales-fraught-risk-2788023/video
Remember:
- mortgagee sales are generally purchased at lower prices than vendor offered sales and they do have an element of risk – that is why they are generally purchased for lower prices. Make sure you know the risks go into any sale/purchase with your eyes open.
- “mortgagee sales are not giveaway’s” the mortgagee is duty bound to get as fair value as they can for the mortgagor – in fact if the property sells for more than any debt the balance is paid to the mortgagor.
Am I saying don’t buy a mortgagee property? – ABSOLUTELY NOT! There are some great properties that end up at Mortgagee Sales and often bought at more affordable prices but I recommend buyers research before making offers and take reasonable steps to minimise any risks.
