Property foreclosures Australia is the legal act of filing a notice of default in the public records and a lawsuit against the borrowers for the purpose of retaining or publicly auctioning the given asset unless defaults are repaid.
Property foreclosures in Australia are a typical example of today’s real estate market condition resulting from economic distress. Anywhere in the world, the real estate market has its share of foreclosures.
Speaking of foreclosures brings our mind to homes repossessed from owners who fell behind on their mortgage payments. The bank now becomes the owner of these homes. A typical foreclosure proceeding starts after the completion of a given deadline, with a minimum default period of 2 months. The good part of the deal is that the borrower is afforded the right to settle or make back due payments up to a certain point agreed upon by lender and borrower. The settlement period differs from state to state in Australia.
Foreclosure homes more often than not, have a lot of work to do on or have defects. You would have to do your due diligence if you’re scouting for a new home or want to invest in mortgage sales. Increasingly, distressed real estate assets are purchased and offered fully renovated and / or managed for leasing purposes. This approach offers you obvious benefits and securities. Nonetheless, prior to investing take into account these several options in foreclosure. Distressed assets can be:
- purchased as a short sale, meaning you get to purchase directly from the mortgagee for less than the outstanding debt before the property goes to auction, or
- purchased as an REO (Real Estate Owned by a bank) if the property has failed to sell for the required amount at auction, hence such is retained by the lender.
With such transactions usually involving banks, you might have the impression that banks today are into the business of selling homes. Truth is, banks are in the money- making business and not into owning homes. They only become aggressive and motivated to sell homes as their last resort to recuperate from the unpaid debts.
Whatever reason you may have for your delinquency, be it—a result of a loss of income, sickness or even a death in the family, mortgage companies seem to be sympathetic and lend a listening ear. But in reality, they are only after the clearing of the debt in the soonest time possible. They just want to move foreclosures off of their books quickly.
In such an instance, banks become desperate to sell by offering a low, but competitive bid on the home. Why, because if they don’t dispose of the property immediately, they would be responsible for the costs of holding a foreclosed property. Such includes property taxes, maintenance and the loss of income a homeowner would have contributed if he was making payments on a mortgage
Finally, while a few mortgagees allow for a payment extension in the event of such circumstances, but many do not. So if you’re a homeowner on default and foreclosure is in the offing, don’t waste any more time. Act quickly before it’s too late.
Whether to save your own home from foreclosure or earn from purchasing distressed real estate, Dominique Grubisa, renowned Australian Debt & Legal Specialist is the professional to go to. Visit her at http://www.dominiquegrubisalive.com.au to learn of her strategy that can help you and your family have a better lifestyle and secure financial future – if you are ready!