Overseas Perspective
In California, more than 5000 condominiums were offered for sale at a foreclosure auction in March 2007, more than triple the number in September 2006.
Ninety per cent of the properties failed to attract bids, a sign that falling prices were keeping real estate investors on the sidelines.
The US housing slump, coming on the heels of a surge of lending to borrowers with poor credit histories, is spurring repossessions by lenders as homeowners struggle with mortgage payments.
(Source Australian Financial Review April 13 2007)
Jeremy Reed, Director of AXIS Property Consultants Pty Ltd, says this highlights just how important the due diligence process is when undertaking substantial changes to a business. "If you don't have the right advisors guiding you through this complicated and potentially damaging process" says Jeremy "your company can suffer losses, not just financial but to your hard earned reputation"