One possible way of looking a agreement is a mortgagee sale. A mortgagee sale is where an owner has defaulted on their mortgage payments and their lender has taken rights of the property. The lender is now trying to sell the house to pay off the debt. The infer these gain often mean bargains for property buyers is because the bank naturally wants to pay off the loan and will take a price far below store value to do that. In essence it means taking benefit of person else's misfortune. However, the property is there to be bought so person will buy it. It may as well be you
Mortgagee sales are done by auction, so the top bidder wins, providing the bid meets the bank's minimum requirements.
Mortgage
There are a few disadvantages to mortgagee sales, however. Firstly, you do not get to dictate any terms as you would in a general sale. How it is, is what you get. Secondly, you will not have the same rights to access and discover the property before the sale. This is a major disadvantage. Normally you would insist on a construction inspection, but this may not be possible with a mortgagee sale, especially if the unhappy previous owner is still living on the premises. Thirdly, you won't be guaranteed what house fixtures or fittings on the house you are getting because you may not know be privy to what comes with the house.
Because of these disadvantages it takes a bit of reliance as there is an element of risk involved. However, looking a property at a discounted price can make a big discrepancy in turning a property cash flow safe bet or reselling for profit, so the rewards can be well worth it.
Mortgagee Sales
