Lenders Hit Back At Disquiet Over Us-styie Auctions

摘要

Lenders this week retaliated against accusations from UK auctioneers that they compromised their duty to borrowers by selling through US repossession auction house, Real Estate Disposition Corporation (REDC).They argue that, by setting reserve prices, they protected their duty to borrowers and ensured properties got 'the best price that might reasonably be paid' - regardless of the 10% fee REDC charges to buyers.UK auction houses have claimed that the 10% buyers premium, which is at odds with the standard 1%-2% charged to sellers, would be deducted from bid prices and expose lenders to 'massive underselling', as well as increasing the liability to mortgagees.