Home Auctions
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Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=38068
Printed Date: 28 August 2025 at 4:39pm
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Topic: Home Auctions
Posted By: yermasyada
Subject: Home Auctions
Date Posted: 18 February 2011 at 8:38am
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Hi there,
I'm not a fan of auctions, but there's a couple of houses we like that are going to auction. Can anyone tell me, do you really HAVE to have a 10% deposit ready to hand over on the day, if you win? It's a right royal PITA for us to have this ready if we don't end up being successful. Basically, our savings are in UK£ in the UK and I don't want to move I unless I HAVE to. The exchange rate is crud at the moment 
hummmmmmm I guess I could move some £ into a £ account here in NZ. It won't earn any interest, but I guess we won't be loosing out on the exchange rate, unless we need to. Sorry, thinking aloud now 
Still curious as to whether you can pay the deposit in say something like 5 days? Thanks |
Replies:
Posted By: Bizzy
Date Posted: 18 February 2011 at 8:52am
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i dont really know but i do know it is a binding agreement if you win and you do need to come up with the goods.
be careful of mortgagee auctions. What you see when you buy isnt necessarily what you get. The previous owner can basically strip them after the auction of anything they want. ------------- http://www.myfitnesspal.com/weight-loss-ticker"> 
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Posted By: Hopes
Date Posted: 18 February 2011 at 9:06am
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Could you arrange a loan (in addition to any mortgage you'd be taking out) for the money you need, so that you have it on hand if necessary but don't have to convert your pounds? I imagine most banks would understand why you're asking, and feel quite secure in lending to you knowing the situation? -------------   
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Posted By: Anonymous55
Date Posted: 18 February 2011 at 9:08am
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Sorry, I'm not much help either, never bought at auction because I hate them to the core.
But I've been to a few and I've never heard of that rule. All I know is that you have to be a cash buyer and I presume you would have to prove that somehow (maybe bank statements, preapproved mortgage)? I may be wrong
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Posted By: busymum
Date Posted: 18 February 2011 at 9:16am
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Call the lawyer who will be doing the auction for you, or ask the REA for a copy of the auction agreement (that would would have to sign on the day). It would ask for the deposit to be paid on the day by default but then you need to know whether it is void without it or if there is, say, a five day notice period for cancellation if you don't pay. I think it would be the former. -------------  |
Posted By: clover
Date Posted: 18 February 2011 at 9:23am
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You usually have to pay the deposit that day, there can be exceptions but they are rare.
Your bank should be willing to cover it with evidence of your UK funds. ------------- http://lilypie.com"> 
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Posted By: yermasyada
Date Posted: 18 February 2011 at 9:50am
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You'd think the bank would do that wouldn't you, but no. I asked
Thanks for the replies. Yes, very wary of mortgagee auctions. We went to look at a place once, and the agent basically said the guy was well pi**ed off and was almost certainly going to trash the place. She was suggesting we offer him about $30k cash not to destroy/remove anything WTF ??? errrrrr no! 
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Posted By: clover
Date Posted: 18 February 2011 at 5:04pm
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Bummer, I guess they are strict these days with the whole economic crisis. I guess opening a GBP account here is probably your best bet then. ------------- http://lilypie.com">
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