buying a reposession..wwyd?

[EdlessAllenPoe]

We have accepted an offer on our house (whoop whoop)

but the house we were most interested in is under offer and is a repossession - so they have advertised the current offer..

wwyd? would you put in a higher offer if you could afford it? It feels naughty as the sale is under way, and if it was me, i'd want no-one else to muck up my purchase (though if i was the vendor, i'd want the highest price too..spose..)

how do these things work?

[EdlessAllenPoe]

repossession...

don't know, spelling error in the header Edgar, must try harder...

[KeepTheChange]

Are you allowed to do that? I thought once it went under offer then it was pretty much sold?

[Yorky]

We did that, and got it as the other offer was from a 'paint it magnolia and sell it on for profit' type company, they have to advertise the offer so that the finance company can be seen to be getting as much back from the debtor/previous owner as poss

Good luck if its the house you want

[nemno]

All the usual advice in buying a place applies etc etc, but I'd put in an offer if the house and terms are right for you. There is not much to worry about ethically in the case of a repossession ime. The mortgage provider (presumably them in this case) has to get the highest price for the property but in practice I reckon that they must be happy if their own outstanding bit of the loan is covered. The poor actual 'owner' of the house could be well out of pocket.

We bought a repossession and I think that the process is a bit of a nightmare. Our lawyer found some dodgy bits in the terms relating to possible claims on the property title. With the 28 days to complete the sale it was all a bit fraught to sort out.

[nemno]

And yes, as Yorky says, it is highly likely the offerer is a developer.

[kitsmummy]

Put in a higher offer if you want the house - there's nothing unethical or immoral about it. When you're buying a repo you're made very aware that someone can put in a higher offer than you right up til exchange as the bank are obliged to get the most money they can for it.

Put in an offer and go for it, but be aware that someone could still do the same back to you in a few weeks. If it's a bargain it's got to be worth a go?

[bekspolo]

By way of law the proposed highest purchase price has to be advertised in the local rag and I think a notice has to be put on the door/window.

If you want to put in an offer do so, but you have to demonstrate funds and an ability to complete pronto, they won't really consider a chain with a repo.

[EdlessAllenPoe]

thanks very much for guidance..

we will be going back for a second look.

the other problem is the extant offer is reasonably close to asking, and i don't want to get in a bidding war...we'll see.

[Springforward]

We lost a repossession to a higher bidder a few days (days!) before we were due to exchange. (We didn't feel able to go higher because of our valuation report, so that was that.)

It seems pretty normal for "corporate" sales.

Our IFA could not believe it, however... he thought they'd have stuck with us because we were so close to the end, but apparently not.

[bekspolo]

Makes no odds to the lender because whatever the difference is between the sale proceeds and the actual defaulted loan (I.e. any potential losses) the lender can pursue the person who originally defaulted on the loan. So the more "guaranteed" return they get from the new solvent purchaser then the better!

[WetAugust]

I bought a repossession.

The bank had that repossessed took the highest of 3 offers made for it.

Although structurally sound the repossessed former owners had left it in a real mess decoratively: wallpaper peeling from the walls, no carpeting downstairs and 27 separate holes in the bathroom tiles where they'd removed every fixture.

They'd even removed the wooden slats in the airing cupboard.

Just before I moved in, after contracts had been exchanged with the bank, the former owners came back and removed the garden shed. I rang the Police. It was resolved by the bank knocking £500 off the price I'd agreed to pay so I could replace the stolen shed. So the former owner gained a rotten shed and lost £500 - dickhead.

Took me 3 years to do the place up room by room, replacing bathroom, kitchen and painting every surface, before starting on the garden (jungle).

But the advantages are that you get it cheap, you're not in a chain, completion is usually fast and after you've done it up you get a house that is your own taste and you don't have to compromise by living with someone else's taste/decor.

[EdlessAllenPoe]

they have already removed the garden sheds, and skirting, architrave and the central heating system.

i suppose this shows there is so much debt attached to the property they had no hope of getting it back through sale.

there is a pergola which i believe was not removed as it is bolted to the walls...

[WetAugust]

.......Don't bank on it

But look at it positively - it's making the house cheaper and these removals are good bargaining points for reductions.