Unexpected setback in Wellington mortgagee property deal
Matthew, a property investor near Wellington’s airport, encountered unexpected difficulties after purchasing a property at a mortgagee sale.
Despite settling on the property a month ago, he has been unable to take possession due to the current occupant's refusal to leave.
Negotiations turn sour
Matthew extended the initial Dec. 13 settlement date to the end of January as a courtesy, but the occupant refused to vacate when the time came, RNZ reported.
Matthew’s attempts to communicate and negotiate were met with hostility, including severe accusations and verbal abuse from the occupant.
Legal actions and tenant rights
Despite Matthew’s efforts to resolve the situation amicably – including offering a tenancy at below-market rent – the occupant remained uncooperative.
She rebuffed his attempts to discuss rental agreements, telling him, “That’s your problem, effectively.”
Following her continued refusal to vacate and subsequent confrontations, Matthew was forced to seek legal recourse.
The Tenancy Tribunal granted him a possession order, and he obtained an eviction order from the district court, costing him $335, RNZ reported.
Valuation discrepancies and financial implications
The property, purchased for $770,000, was claimed by the occupant to be worth $3 million, though its council rateable value in 2024 was only $1.25m.
She had been in the house since 1982 and had benefited from more than $300,000 from the sale after mortgage repayments.
Signs protesting the process have now adorned the property, complicating the situation further.
Advice from experts
Property investment coach Steve Goodey highlighted the risks associated with mortgagee sales, noting that such properties can’t always be inspected beforehand and taking possession is never guaranteed.
Goodey said that emotional bidding at auctions could lead to overpaying and subsequent difficulties, such as handling the previous owner’s belongings or dealing with leftover rubbish, RNZ reported.
