Beat The Bank!
If the bank is putting a Mortgagee Sale sign on your front lawn, let's talk - URGENTLY!
The Story
The owner of this home rang me one Sunday evening seeking immediate action on the sale of his property.
There was a bit of compliance admin required but, as the owners agent, we got the property on the market at the same time as the banks agent put their sign up.
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The banks auction was set for a date four weeks out, so we set ours for three weeks out. Our aim was to get the property sold under the owners control before the bank sold it.
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Within seven days we had presented seven pre-auction offers to the owner. This brought our auction forward to 19 November when the property was sold for $190,000 more than the original offer and the bank's debt can be settled before their auction date. The owner walks away with some change and avoids the unhappy ending that can follow a Mortgagee Sale.
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If you need to beat the bank, we should talk urgently. When we meet, we'll save a lot of crucial time if you have at hand:
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your passport
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your driver's licence
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a letter with your residential address on it, from:
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Council,
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your power company,
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your phone company, or
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your bank;
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the balance of your mortgage.​
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I'll bring the title to your property and we can work out a plan from there. When we catch up, we'll talk about getting legal and financial advice if applicable.
Your Options
When the bank takes your property to a Mortgagee Sale, you as the owner have the right to settle the debt with the bank right up until they sell it themselves. You might do this by either re-financing, or selling it yourself.
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The bank will engage a real estate agent to sell the property on their behalf to recover their debt.
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You may be able to engage a separate real estate agent yourself to sell your home, provided you can settle the debt to the bank.
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Generally the bank will accommodate your selling plans, if you get started early enough. Depending on circumstances, you may need their approval to sell the property before they do.
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Legal advice is wise, and any caveats on the title will need to be understood.
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The Banking Ombudsman has a very good article here, providing guidance about what the banks can and cannot do. The best thing you can do is act early. I'll help you work with the bank if there's still time, but either way, let's talk through your mortgagee sale avoidance plan very soon.
I've been through a similar event myself, so I know how it feels. I take a lot of personal satisfaction from helping others avoid the same experience.
I do not provide legal or financial advice. That is the domain of other experts. I can help arrange those meetings if you wish.