Mortgagee Sale

What is a mortgagee sale? 

A Mortgagee sale happens when a lender, known as the mortgagee, sells a property that was used as collateral for a loan. This typically arises when the borrower has defaulted on the loan payments. This sale allows the lender to recover the outstanding debt by selling the property to a new buyer. 

How can I find a mortgagee sale? 

Mortgagee sales are not typically advertised by lenders through usual means such as online listings and flyers. However, you can reach out to local real estate agents or buyer's agents, as they may have the means and connections to locate properties being sold under mortgagee possession. 

Are mortgagee sales a good opportunity for buyers? 

Mortgagee sales can sometimes offer opportunities for buyers to purchase properties at below-market prices. However, buyers should conduct thorough due diligence as these properties may have issues or be sold "as-is." These sales may come with inherent risks such as outstanding debts and liens.