Buying a Repossession...a question!

[McDreamyingofawhiteXmas]

My DB and SIL are trying to buy a lovely house that is a repossession. The offer has been accepted by the building society, there is no chain so exchange could happen fairly quickly. The estate agents have informed them that as it is a repossession they are obliged to keep it on the market however as far as they were concerned they wouldn't be doing any active selling of it eg. open house (how DB and SIL viewed it), phoning clients etc

DB and SIL visited the house again on Sat only to find another member of the estate agent team showing another couple around and actively suggesting they should gazump my DB DB was horrified!

DB about to start paying out money for surveys etc and they are understandably worried about loosing it all. NOt sure what to say to them tbh except go and speak to estate agents again for a "chat"

What do you think?

[shonaspurtle]

Isn't the situation that if the offer your db has put in is less than the current mortage, the previous owners will be liable for the shortfall?

In that situation I can see why they would want the best possible price.

[mrsmharket]

definitely go for chat!
isn't it illegal to advocate gazumping????

[crumpet]

As I understand it the house remains on the market right up until exchange of contracts, and that the estate agent has to put a noitice in the paper every time a new offer is received, so this is not unusual. Will be a tense few weeks until they exchange as a new offer could come in at any moment.

[McDreamyingofawhiteXmas]

I can also se why the best possible price is wanted. I think the bit that has miffed my DB is the positive encouragement to gazump.

The estate agent DB was dealing with last week said while they had to publish the price DB had offered as far as they were concerned the house was sold and they would treat it like any other sale except keep it "on the market". But they would stop sending out the details etc.

The couple on Saturday looked really shocked when the EA agent said put in an offer and guzump the offer on the table.

I feel really sorry for them but deciding to buy this kind of house was always going to be a risk until exchange. I guess they have the time of year on their side. Would hink most people will start house hunting in the new year.

[Fizzylemonade]

Your DB needs to get a rocket up his backside and get the survey done and exchange as soon as possible.

You are right that at this time of year most people take a break from looking but still there may be someone out there who would and could offer more.

It is always a risk with a repossession, he just needs a good solicitor.

Of course the estate agent wants the highest price because they get a higher commission.

[McDreamyingofawhiteXmas]

Thanks Fizzy, you are of course completely right and in fact after speaking to DH this afternoon that is exactly what he is doing. His solicitor is hopeful they can exchange before Xmas - fingers crossed for them

[McDreamyingofawhiteXmas]

DB not DH!

[MortaIWombat]

Yes, we just bought a repossessed house, and it is nerve-wracking, but standard practice, apparently.

[LIZS]

The EA is obliged to get the best possible price. Usually they advertise the highest offer received in local paper before exchange.

[Fizzylemonade]

Fingers crossed. I am doing a normal house sale and that is stressful enough.

We are about to have the house we are buying surveyed. Nail biting time.