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Bank Assisted Sales - Bank's involvement

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  • 15-01-2015 3:44pm
    #1
    crisco10
    Registered Users Posts: 6,205 ✭✭✭


    Hey,

    quick question how do "Bank assisted sales" work? from what I gather the owner is "volunteering" to sell because they are struggling to service the mortgage? Is this right?

    furthermore, how much involvement do the bank actually have in the sales process (e.g. asking/as sold price)?

    Have been at a viewings recently where the EA has mentioned this type of sale.

    thanks...


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    #2
    Deenie123
    Closed Accounts Posts: 481 ✭✭Deenie123


    They're pretty much all "distressed" properties where the mortgage isn't being serviced/repayments aren't being met and where the balance on the mortgage exceeds the realizable value of the property i.e. they're in negative equity.

    On these properties, the banks have their own consultant estate agents working for them.

    Basically, when an offer is put in front of the bank, they go to their EA for an assessment of whether the offer is at market value. The bank's EA revert to bank with advice on whether to accept or reject the offer, bank make their decision. In their assessment of the offer, the bank's EA will consider the size and condition of the house, the number of previous offers (and what they were), as well as the amount of the offer relative to recent sales in the area, and will look at things like has the vendor's estate agent marketed the property correctly - is it on daft? on myhome? Are the pictures up to scratch? They also consider any engineering reports on any obvious or discovered defects with the property. And so on and so forth.

    The whole point of it is that when the owners of a distressed property agree with the bank to sell, the bank will probably be cutting them a bit of slack. Bank wants to ensure there aren't any antics going on where the owners know an estate agent who's not marketing it properly to reduce interest, or are giving wink wink nudge nudges to viewers to put in lowball offers that the bank rejects, with the result that owners get to stay longer (time bought!). Basically, they're just making sure they get what the house is worth and that external factors aren't reducing the offers below the value.


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