New Home Buyers Hot Tips Part 17: Risks of Mortgagee Property Auctions:

New Home Buyers Hot Tips :

Part Seventeen: Risks of Mortgagee Property Auctions

h.) Mortgagee Auctions withdrawn at the last minute.

The mortgagee auctions can be withdrawn at the last minute without any notice being given to the prospective purchasers. The main reason this would occur is that the owner has found a way to clear the arrears or something has allowed them to refinance to another lender. The mortgagee who is selling the property is only here at last resort. The Property Law Act 2007 says that the mortgagee has a duty of care obligation to obtain the best price in a distressed sale for the owner. A lot of mortgagee sales are conducted by auction as it is deemed that it is a transparent and demonstrates a fair market value for the property.