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This podcast gets to the heart of what outcomes the trust deed investor must be prepared for. There are two main outcomes: (1) get paid back, on time, with interest; and (2) borrower fails to perform, in which case there is a default and lender pursues a foreclosure to protect lender's interests.
Within this second outcome, there are two sub-paths: (2a) foreclosure auction takes place, and the lender is outbid by another investor, in which case the lender gets paid back, with interest and reimbursement of attorney's fees; or (2b) lender is the highest bidder at the foreclosure sale in which case lender owns the property after the foreclosure sale. Lender can then hire a broker to sell the property. If the loan wasn't excessively large relative to the value of the property, lender should ultimately get his or her money back, with an attractive return, to compensate for the hassle and work involved in foreclosing and having to hire a broker and sell the property.
@colettehollander The amount of time varies by state. In California, it takes about four months to foreclose, if the lender takes action immediately at the time of the default. The property is then fixed up, if necessary, and listed for sale. The selling process itself should take 45-60 days if the property is priced properly.
Brokerage fee amount by transaction value 1.
Trade online and settle your trade to a CDIA or CommSec Margin Loan 2.
Trade online and settle into a bank account of your choice.
Share Trades over the Phone 3.
CommSec Share Packs online 4.
CommSec Share Packs over the phone 4.
Trades requiring settlement through a third party 6.
1 For GST rounding reasons, the final brokerage fee may vary from the stated or expected brokerage fee by a couple of cents.
4 Normal brokerage will apply when a stock acquired through CommSec Share Packs is subsequently sold.
5 Amount per share will be noted as brokerage on each confirmation issued. There will be no substitution should a stock have a trading halt placed on it.
6 Includes third party Margin Lending, and where the Commonwealth Bank exercises its rights under the loan Terms and Conditions.
Other fees may apply. Please see the CommSec Financial Services Guide.
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Frequently asked questions.
Shares held with another broker.
For the transfer to be successful the name and address registered on your issuer holdings must match your CommSec account.
Your request will be completed within 72 hours.
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