Borrowers often tell us that they are refinancing although often it is their inability to achieve this that has prompted the receivership, but nothing prompts borrowers into action more than placing the property into auction. Having a set deadline focuses borrowers’ minds and, where they have a genuine refinance underway, they will typically have the 3-4 week auction marketing period to complete it. Alternatively, it sometimes becomes clear that the borrower is unable to refinance, and we need to sell the property in auction, but either way, the method of auction brings about a positive outcome for the lender – recovery of the debt.
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Everything we do as receivers has to be justifiable and provable and we use a range of auction houses as appropriate. However, a strength of Strettons is the number of property services we provide, and we are lucky we have an in-house auction team so we can work collaboratively with them. The advantage is that we have full access to their systems and can have more in-depth discussions over strategy and pricing. It also enables more live intel than we get when using other auction houses. We can see the registered bidders’ details, which is important as we do not always permit borrowers or connected parties to bid as they can frustrate the sale process.
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We have direct access to the auction team so there is greater flexibility for borrowers who may redeem their loans with minutes to spare before the Lot is auctioned. We have even had occasions where we have withdrawn during the actual bidding for the lot!
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