Mortgagee Auction No Access

[Maccachic]

Have you got kids? Legally you can knock on a door right? So grab some kids and take them there selling cookies / raffles whatever the school is fundraising for, you will see inside the door at least?

[Wayne]

kick the ball over the fence and go fetch

[Davo36]

Thanks for the replies guys.

I spoke to the agent yesterday regarding a conditional offer, he said this (this is his well worn spiel I reckon):

1) The bank wants a resolution. It may have taken 18 months to get to this point and if they entertain conditional offers now, then there's a 70% chance that the conditional offer will not go through and so no, they will not accept conditional offers.

2) I should use the 'acceptance time' to do my due diligence. This time is the gap between tenders closing and the bank accepting an offer. This is often around a week, so I should put in an unconditional offer and then get the council property file CD etc. to do my due diligence.

And yes, I realise the idea is not to ask them if you can put in a conditional offer first, just whack one in. But I wanted to know what he would say. It's all very interesting.

The amount of pressure applied to purchasers is quite strong, for instance, the constant idea of a 'bargain' being missed etc. Plays very well into the 'fear of losing' which is an extremely powerful motivator.

But the level of effort put into helping that purchaser actually make a sensible decision is basically nil. It's all just 'buy buy buy!'

The tender ends today, I might what in a land value one, you never know. I'll keep everyone here updated.

[Bluekiwi]

I have bought a few by mortgage sale and looked at quite a few and gone to auction.
This is what I would do, and what I have done, in cases just like this.

In most cases the people are in denial, or pissed off with the agent and or bank.
Most of the time they are not nasty or aggressive.

If you win the property you will have to visit it anyway.
So get it over with now.

Rock up and knock on the door.
Have your humble face on and say you live nearby and say you heard this property is going to auction.
Is it possible to have a look through.

75% of the time, they will let you in for a look.
But you have to listen to their moaning about the bank and about the agent.

If you win, you will have to talk to them, have to do this anyway.
Its a lot easier bidding if you know thy enemy.

Note: Once, I had to get court order and police around, this took 3 to 4 months for me to get access.

[Leftette]

I'm confused. How can you use the acceptance time and opt out if something from the council file worries you, when it's an unconditional offer?

[Davo36]

Well if an offer's not accepted, it's not a contract is it.

You can always withdraw an offer prior to it being accepted, conditional or unconditional.

BK, hmmm. I dunno if I'm cheeky enough to that. I live almost straight across the road too, they're about 4 'doors' up (it's a slip road, shared driveway thing they're on, bush in between, all a bit hard to describe, but their house number is only 1 different to mine). Never met them before. Seems stink to knock on their door and say, hi I've lived nearby you for years, never once said hello but now that you're in trouble I'd like to kick you while your down and nip in and buy your house! And so to do that more easily, will you let me have a quick nosey around?

I'd prefer it if it wasn't so close to my house actually.

Hey what you doing today BK? Fancy a lunchtime trip out west? You could scope if for me?

[Leftette]

Dunno, that seems to be playing with fire a bit. You'd be assuming the week duration was correct. If the council is slow to get you the file, or there's just one more thing you want to check out, and leave it to almost the last minute, and the bank just happens to accept it a day or two early, then you're screwed.

[Bluekiwi]

Well if an offer's not accepted, it's not a contract is it.

You can always withdraw an offer prior to it being accepted, conditional or unconditional.

BK, hmmm. I dunno if I'm cheeky enough to that. I live almost straight across the road too, they're about 4 'doors' up (it's a slip road, shared driveway thing they're on, bush in between, all a bit hard to describe, but their house number is only 1 different to mine). Never met them before. Seems stink to knock on their door and say, hi I've lived nearby you for years, never once said hello but now that you're in trouble I'd like to kick you while your down and nip in and buy your house! And so to do that more easily, will you let me have a quick nosey around?

I'd prefer it if it wasn't so close to my house actually.

Hey what you doing today BK? Fancy a lunchtime trip out west? You could scope if for me?

Same thing you will do once you bought it.
If you feel that way, probably best not to look at any mortgage sales.

The wild west aye.

Plus good to find out now, before you buy, what sort of gun he has

[Davo36]

I have amended my post above. Regarding the agent saying it could be withdrawn during the tender period, I think I misheard or misunderstood him there.

Reading the tender docs, the tenders, once entered, cannot be removed during the acceptance time. So my mistake. So not quite sure what he meant, must have been "Oh don't worry, just buy it!" lol.

BK, yep I realise how it is once you've bought it. Bought 3 mortagee ones but 2 of them were commercial. Man the commercial world is sooo much easier, you're not buying someone's home, just a place they did business in.

[Nice]

I'm with BK, have done this myself. Had a good chat with them about where they were financially (in general terms), and found out they were about to resolve the situation with family help, and it came off the market a day or two later anyway.

The other option would be interesting, make them an offer that would allow them to walk away ? Might not work in this circumstance, but you have to find out the circumstance first.

[Bluekiwi]

Commercial world is a scary place for us residential property investors.
Its a whole new world, do you have property managers or do it yourself.
You need a few more braincells to work the leases and legal stuff.

Plus you need money to start with as its 60% or 70% LVR.
Maybe an end game for some property investors.
But I would imagine it being very risky with one tenant industrial sites.

[Davo36]

Well I whacked in an offer just now.

Just over land value at $300k. GV is $600k or so.

It's this one: http://www.trademe.co.nz/property/re...-621029045.htm

And you can see more in that picture than you can in person standing there. So that's all to go on really.

[elguapo]

lol, I love the 'Agent on site' bit. He must just lurk around the drive trying to describe it to punters!

[Davo36]

He parks across the road in a bus stop / car parking area and hands out flyers, info etc. Then we walked up the road and waved to the poeple in their kitchen, through the trees lol.

So yeah I was expectign to at least be able to walk around the site etc. but maybe not inside.

Oh the other funny thing is they smashed the for sale sign to bits!

[Xav]

Yeah the signs usually don't last long .

Not putting in any effort to help purchasers is probably intentional (ie. instructed by the bank). As you know the agreement has no warranties etc so the bank doesn't want that undermined by the agent representing something that turns out to be incorrect.

Good luck with the offer!