Anyone know about home repossessions?

[22s]

Morning all,

I'm working on a new project and was wondering if anyone has a good understanding of how the sale of bank-repossessed residential properties works?

My understanding - laced with assumptions which could be/are very likely wrong - is that:

- Borrower takes out loan for resi property
- Lender packages up this loan with a bunch of others and sells them on to mortgage servicers
- Mortgage servicers receive and process the monthly payment from the borrower
- The borrower defaults
- The lender repossesses the property
- The mortgage servicer is responsible for selling the property and recovering the debt, and does so by marketing the property through its network of agency/auction house partners

Is that right? I believe that mortgage servicers are not always involved in the loan administration - and that the lender and mortgage servicer may be the same company - but I'm finding it difficult to get a clear answer. I'll be speaking to some mortgage servicers and lenders, but was hoping to get some basic understanding first!

If relevant, my new project would come in at the end of this process to sell the repo properties for the lender/mortgage servicer.

Thanks in advance!

[22s]

mcflurry said:

What would you do betterer that the existing Estate agents / Auctioneers aren't?

Offer a guaranteed sale price at near market value. Enable the company selling the repo to draw down money immediately for a fee.

[22s]

98elise said:

MV is dictated by what someone will pay for it. The EA will advertise the house on right move and when an offer has been made and accepted, they will advertise that as well.

The mortgage co are obligated to get the best price, so how are you going to offer more money?

Would market the property as a normal estate agent, but with a guarantee it would be sold for X amount within 90 days.

If it does not sell, then we would advance the cash.

The value would be in the certainty (and speed, if they want to draw down on the guarantee early) - but don't know if this is valuable to those selling repos or not.

Lots of valid points from everyone - maybe it won't work - thanks for the input!