How not to have a mortgagee sale

Mortgagee sales increasingly common

In our offices, we are suddenly seeing an unfortunate rise in mortgagee sales. A mortgagee sale occurs if a property owner can no longer meet their mortgage repayment obligations, and their lender or bank forces the property to be sold.

Disadvantages of distressed property sales

There are significant downsides for a property owner in having a distressed property sale, with properties often being sold for less than market value, and on the bank's terms, meaning the owner has little or no control over the sales process.

In addition, the public nature of a mortgagee sale, as well as the negative impact on credit scores and the need to cover other unexpected costs – such as the mortgagee's legal fees and interest – make a mortgagee sale an extremely distressing process.