the house we were buying is being repossessed...anyone know how it works?

[lilsmum]

basically..to cut a long story short...

we have been in the process of buying a house over the last few weeks, we have shelled out £175 for the survey, paid solicitors £250 (520 owing) and then had a prob with the mortgage, they said they would take my self employed income into the equation (sp?) but then changed their minds (GGRRRR)

so the house was selling for 85K, we can only get 74k on a mortgage, since then i have found out the reason the vendor was wanting to sell so quickly is because she has a court hearing for repossessing on 3rd oct, she owes 84k...now my solicitor advised to offer the 74k (because she will lose alot more if repo'd) the vendor said no.

if the house is repossessed can we buy straight from her mortgage co?

will the price be alot less than 85k?

will we be favourable because we have had the searches and survey done?

would really appreciate ANY advice given, as dont have a clue from here on..

TIA xx

Ok i don't have a clue either but i am sure the house does go for less as this happened to one of my friends parents houses and when it went back on the market it was up for less, they just want there money at the end of the day

IIRC a lender is almost always better to allow the vendor to sell instead of repossessing and then selling themselves. Repossessing is a costly exercise. I suspect if the mortgagor knew that an offer was in they would urge the vendor to accept an offer. I think the mortgagor would very likely sell to you direct but its worth making your intentions clear now insetad of after repossession

not that its happened to me, i used to work in the banking and insolvency unit of a large firm of sols and pretty sure this is how it worked

If you can exchange before the 3rd you might still be ok. Is there an estate agent acting for her, or are they acting for the mortgage company ? Presumably they stand to lose commission if it does get repossessed and might be able to "persuade" her and renegotiate on your behalf (although that is a big drop so she'd have to be fairly desperate to accept).

If it goes to repossession they might still prefer to auction it, if they think they can get more than 74k or if she owes more than that, or they might take your offer but it may have to be published in the paper in case anyone is prepared to pay more, which would leave you in limbo.

I expect your solicitor would know how it might work anyway.

thanks everyone, the thing is, its not like we are just trying to save ourselves some money, we cant get any more on our mortgage, so you all agree it would be worth writing to her mortgage co?

the only way we could up the money is by getting a bridging loan(which we would really only be able to go up maximum 4k), which we dont really want to do obviously.

it is such a mess, and if it all falls through...we will lose £600

I would have thought your solicitor should approach the mortgage company. He could argue that you are in a strong position(mortgage arranged, survey, searches etc) to get them their money quicker than if they repossess and remarket it. Don't see what you have to lose apart from the 600 you may lose anyway, they can only say no.

thanks LIZS/everyone...why do these things ALWAYS happen on a friday so i cant do nothing till monday lol.