Should I buy a mortgage apartment from a bank??

It is possible to make money by buying a mortgage apartment from a bank, but don't wait for prices several times lower than market prices. First of all need to pay attention on the condition of the apartment, location, repair and already comparing these data to make the final choice.

How can you purchase mortgaged property??

1. The seller is himself borrower. After the bank claims to repay the debt, he applies to the bank, to resolve this issue. Receives permission to sell an apartment in order to close the debt. In this case, the seller will try to set the price in accordance with the market. It will be possible to save money on such a purchase only if, if the borrower is in a hurry to get money in a short time, because his credit at the time of sale will not go anywhere. Here you can say no more than a discount 15-20%. In fact, such a deal is no different from an ordinary one.;
2. Salesman - bank, in the face realtor, received special "accreditation" for such transactions. In such a purchase, the buyer can both win, and lose, it all depends on the goals of the bank (accelerated sale in order to close the debt and return your assets or sale at a better price), from the professionalism of the realtor himself. Here we will consider the option, when the bank itself offers a mortgage apartment to its new client. The discount is usually 1-2% per annum of the original interest rate.
3. Auction. This method of acquiring a mortgage apartment has not yet become widespread., but for the buyer it is the most profitable. Such a sale takes place according to the same type of algorithm.. A court decision is required to list an apartment for auction, after preparation begins. First, information about the sale of an apartment is published on the official website of the bank., in the media and the website of bailiffs. The date of the auction is set, which can be held, if it gathers at least 2 bidders. Trades are conducted in a standard way: setting a minimum price (the amount is established by a special judicial commission with the participation of the bank), after which the participants increase it until then, until offers for an increase are no longer received. Sometimes the discount can be up to more 20% from the cost. We will consider this method below..

How to buy a secured apartment from a bank at an auction?

You need to carefully search and choose a mortgage apartment for purchase, do it only for official sites and bypass ads on marketplaces, you can run into unscrupulous real estate offices, which will easily mislead you.
Need to know, the apartment is admitted to the auction only by a court decision, it means, that information about the auction is certainly published in official sources. If you made a goal To buy an apartment in this way, then the first step is to constantly monitor the official websites of the bailiffs and the bank.
Often the most "tidbits" at attractive prices fly between "friends" and it is difficult to catch such an option for selling mortgaged apartments in Odessa, but you can. According to the law, the organizer of a public auction must inform about their holding no later than, than for 30 days, but not earlier than 60 days in one of the official state print media. An auction is held in the same settlement, where is the real estate for sale. That is, if the apartment is located in Odessa, then the host city will be Odessa.

According to the law, information on trading must be provided around the clock and freely available..

Why is it profitable to buy a mortgage apartment??

Purchase of mortgaged apartments in Odessa, as in other cities, is considered a bargain among buyers for a number of reasons:

• The apartment is always with a "good history". Before issuing mortgage loans, the bank thoroughly checks the property and only after that approves the mortgage;
• Usually such apartments are located in new areas of the city and are sold in good condition.;
• There is an opinion, what buying a mortgage apartment from a bank - low price guarantee, much different from the market. There may be inconsistencies with the last paragraph., it all depends on the method of sale and the purpose of the seller.

Cons of purchasing

1. The real estate market is practically stable and neither the owner of the apartment, no bank, does not want to allow large financial losses, so you shouldn't expect big benefits, even in an auction, you can usually count on not more than 5-6% discounts;
2. The pledge will need to be removed, this will happen only after the bank receives funds to pay off the debt. Sometimes the removal of the burden can fall on the shoulders of the new owner., and this takes a lot of time and entails additional costs for paperwork and notary services.