Mortgagees must adequately advertise mortgagee sales to ensure that the mortgaged property is not sold for less than market value.
The Banking & Finance Ombudsman has updated his views on adequate advertising to include his views on internet advertising:
“… an advertising campaign should include print advertisements in local, regional or state-wide newspapers, specialised real estate magazines and agents’ franchised publications.
However, we acknowledge that internet listings have become an acceptable and widely used medium by which estate agents promote a property for sale and potential purchasers search for available properties within their buying criteria. Internet listings are also available at a price substantially less than the cost of print advertising.
Therefore, we accept that advertising on a well known and well regarded Australian real estate sales website may be an acceptable alternative to advertising in a local, regional or state-wide newspaper. However, for remotely located properties not serviced by such websites, an advertising campaign in a local, regional or state-wide newspaper may still be required for a mortgagee to discharge its obligation to advertise the property for sale.”