Bank Foreclosure

[Julia]

Can anyone say if a bank forecloses on a property and then proceeds to sell it, is the asking price usually market rate, or do they rather just focus on getting the loan back? i.e. are these mortgagee sales often bargains?

 

[ShareGuy]

They are often bargains... Seen a few a mass auctions in Townsville a while ago...

Also, talking to a guy from ANZ - he said if they don't get the loan back they also go after ppl for the shortfall. I would have thought as the property is the security for the loan thats all they could take?

 

[Trevor_S]

I would have thought as the property is the security for the loan thats all they could take?

You are getting Aus. confused with USA. We have full recourse loans . ie you are responsible for all the debt.

 

[doctorj]

Good banks don't (and shouldn't) take equity-like risks on their debt. They have security on your property to HELP ensure they get the money back, not to limit their recourse. Just as banks don't participate in the upside when your home goes up in value, they shouldn't be exposed to the downside, beyond the credit risk.

 

[ShareGuy]

You are getting Aus. confused with USA. We have full recourse loans . ie you are responsible for all the debt.

Opps! sorry must have had a brain snap

I'm all for the banks going after all the debt, the USA is a basketcase because of that policy!