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Issue 19 - November 2014

The FOS Approach to mortgagee sales


When a financial services provider (FSP) lends money, it may require the borrower to provide a mortgage over an asset, usually a home or investment property. If the borrower is later unable to repay the loan, the FSP can take possession of that property to sell it and reduce or pay out the loan. 

An FSP in possession of a borrower’s property must take reasonable care to sell the property for either its market value or the best possible price.

If we believe the FSP did not take reasonable care, we may award the borrower compensation for any difference between the sale price and the market value of the property sold.

You can read more about our Approach to mortgagee sales disputes here.

Visit to see all the available FOS Approach documents.