Mortgagee sale
A mortgagee sale is when a lender sells a property after the borrower defaults — sold as-is, with no warranties, vacant possession not guaranteed, and often below market value.
Buyers carry unusual risks: no chattels guaranteed, no access for inspections in some cases, occupants may still be present, and the standard vendor warranties are stripped from the contract. The discounts are real, but so are the traps — legal review of the particular mortgagee terms is essential before bidding.
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