Distressed Property Auctions

N

newbie

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If a property comes up for sale at a destressed property auction, can a family member of the owner put in a bid through a third party and be successful in buying it.
Just wondering if this is allowed..
 
Why use a third party to buy? (although they're entitled to do so) when they can buy it themselves providing the funds are available and above board for revenue.
 
noproblem said:
Why use a third party to buy? (although they're entitled to do so) when they can buy it themselves providing the funds are available and above board for revenue.
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Normally the bank won't allow someone connected with the debtor to purchase the property.

So people put an unconnected 3rd party between the debtor and the connected person as a work around. As the OP has asked the purchaser is not connected with the debtor so therefore would not be excluded. Depending on the agreement with the bank it probably would never come to light.
 
That's news to me about that bank rule. Only last week I was with a brother of a man who did this and the bank were well aware of the relationship, no problem at all, but there you go.
 
noproblem said:
That's news to me about that bank rule. Only last week I was with a brother of a man who did this and the bank were well aware of the relationship, no problem at all, but there you go.
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I understood that this was the rule from listening to auctioneers/solicitors and financial advisors. Any harm in asking you what bank was involved in the case you referred to in yourpost
 
I don't know if i'm allowed to say it so i'll say it was one of the Irish one's beginning with B and ending in I (for short)
 
Dont see how a bank would care who buys the property, its up for auction, highest bidder wins.
 
At the big property auctions bank/auctioneers won't know who's bidding on what until after the hammer falls. If they object to who the highest bidder is they'd have to put it to auction again.
 
The banks refusing money? I just don't think so somehow. As agents for the bank, the auctioneer conducts the sale and checks the bona fides of the money / seller. That's it.
 
newbie said:
If a property comes up for sale at a destressed property auction, can a family member of the owner put in a bid through a third party and be successful in buying it.
Just wondering if this is allowed..
Click to expand...

You can be sure this is going on all the time. There was a high profile case of it actually last week, but related to cattle. The grandfather bid on half the herd that were being auctioned off by ACC bank. Unfortunately or fortunately for him, the money from his pension didn't arrive on time to meet the conditions of sale. I was amazed at the receivers costs so far in this case where were apparently 1 million (so far)
 
Once a property under a receivership is put on the open market it is open for purchase by anyone!
 
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