When to use Yellow Apricot - Mortages |
YELLOW APRICOT WORKING FOR MORGAGEES
When a Mortgagee has the unfortunate reality of repossessing a property, the property must be sold as quickly as possible at the highest possible price to ensure that the debt is paid off as soon as possible.
Yellow Apricot Auctions can be useful in achieving a quick sale at open market value, with completion normally in 28 days. Most importantly the Mortgagee is seen to be acting in its best interest by selling the property at open market value, so there can be no arguments that the property was sold off too cheaply.
Example: Oxygen Mortgages Plc have repossessed a property with a mortgage outstanding of £302000 (including arrears and repossession costs). The property is worth between £300000 and £350000, so there is a chance that the property may not be able to pay off the whole debt owed to the mortgagee. But the debt is rising and Oxygen Mortgages Plc decide to place the property into the next Yellow Apricot Auction with a Reserve Price of £300000.
The property ends up selling for £310000, which ensures that the outstanding debt is repaid to Oxygen Mortgages Plc 28 days later and this chapter can then close.
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