Reply To: Where can I find a listing of houses that are being auctioned by a bank?
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In Australia the system works differently to the US. You often won’t even know that a property for sale or auction is a foreclosure unless the real estate agent decides to use it as an advertising strategy. In Australia, you very rarely get your house foreclosed by anybody other than the lender, so you don’t tend to get the city or local authority auctioning off homes for back-taxes like happens in the States. And the lenders here aren’t quite as ruthless; consumer protections are much higher here and the lender is obligated to get the best price possible for the property, not just get enough to cover their mortgage in the minimum amount of time. So properties that are sold due to foreclosure tend to sell at or near market value, not at a significant discount like can happen elsewhere.
The best way to buy under market value in Australia is actually to find a property that has been badly marketed, isn’t advertised because the vendor is too cheap to pay for advertising, is being sold because of a divorce or death, or has disadvantages that could be remedied for less than it the price has been discounted to take that factor into account.
But generally, it’s true that buying under market value is not as common in Australia than in the US.