Er, what does a mortgagee sale mean?

[mr funny]

http://www.straitstimes.com/Invest/S...ry_396344.html

June 28, 2009

FINANCIAL QUOTIENT

Er, what does a mortgagee sale mean?


Where do you see this?

In financial news articles, classified advertisements and auction houses' list of properties on offer.

What does it mean?

A mortgagee sale takes place when a bank force-sells a property after it has repossessed it, when the borrower cannot pay his mortgage. The repossessed property is usually sold via an auction by the bank - and often as a last resort - to recover the debt of the defaulted borrower.

Why is it important?

Such forced sales can throw up great bargains for investors.

A surge in the number of repossessed properties is a sign that the economy is not looking good. It signals a worsening property slump.

For instance, the number of such properties shot up at auctions during the economic crises of 1986 and 1998, when many homeowners struggled to pay their mortgage instalments.

But this time round, the number of mortgagee sales has not risen.

So you want to use the term. Just say...

'I have been monitoring auction houses' list of mortgagee sales to see if I can get my hands on a real bargain.'

Joyce Teo

[scott7777]

hi,

IMHO, there hasn't been many mortgagee sales this time around because the developers and banks are trying to solve the problem through more flexible terms and conditions, rather than create PR problems.

Newspaper reports of folks being forced out of their home is bad news for developers, banks, the property market, and Singapore.

If this more flexible approach doesn't work then folks are guided towards auctions. So instead of the bank offering up property for auction, the owner offers it. Much nicer all round.

[focus]

means head not so big.. go and wear too big a hat..
now have to sell the hat coz find the hat dont fit loh.

[Property_Owner]

Guess this will happens when the dude really kapur

[WolleyDragon]

means head not so big.. go and wear too big a hat..
now have to sell the hat coz find the hat dont fit loh.

well for some people, when they bought their hat.. their head really that big. (Head full of blood with all the excitement around)

However, with the current situation, their big head also kiu Jui. You'll know what I mean if you have seen Seinfield's episode with George experiencing shrinkage due to having a cold swim..