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Original poster

Buying a repossession [sad}

17 replies

critterjitter · 22/11/2008 20:04

I'm looking at buying a repossession (please don't shout at me if you've been repossessed! ).

It's on for £235k. Similar sorts of houses in the area are on for £265-299 (but not necessarily moving!). Its got a new kitchen and bathroom, but the rest of the house looks a bit 'tired.'

My question is whether the prices for repossessions are 'set in stone' by the banks selling them. Or can you offer on them?

Agent said that bank would stipulate a 28 day period for completion. I don't have anything to sell, so would be a good bet!

OP posts:
BayeauxT · 22/11/2008 20:51

I think you can offer on them - I saw a repossession a few months ago (which incidentally had been TRASHED by the owner and the building society didn't have the funds or the inclination to clean it up!) - anyway, the agent made it clear we could offer below the asking price... which we didn't in the end as we had the 'pleasure' of meeting the neighbours... dodged that bullet!

If they say no you can always go up from there...

feedthegoat · 22/11/2008 20:54

We enquired about one when searching for our last house and was told by agent that you can offer and that sometimes banks will take a lower offer from someone who can complete quickly. We didn't go for it in end and don't honestly know if this is true or just agent trying to reel us in!

lalalonglegs · 22/11/2008 20:57

Prices aren't set in stone but if there is a shortfall between the price the house sells for and the amount the lender is owed, then the former owners will be pursued.

Original poster
critterjitter · 22/11/2008 21:57

Thanks for your replies.

I've looked it up on Zoopla, and it looks as if the bank are selling it for more than it was bought for (7 years ago). But I suppose the owners might have remortgaged after that.

OP posts:
mumwhereareyou · 23/11/2008 07:36

One of the houses in our street was repossed, the owners had brought it for £195 6 yrs ago and obiouvsly (sp) remortaged as bank had it on for £250, it was sold after 8 months for £212 so guess bank took a lower offer and the previous owners still owe the difference.

If it was me i think i would go in with a lower offer and go up if necessary.

Lizzylou · 23/11/2008 07:41

You can offer on them, but there tends to be a lot of competition with repossessed properties at the moment, because they are "cheaper" than other properties.
The repossession company will normally go with the highest offer from whoever can get them the money the fastest. So if you have nothing to sell, you are in a great position.
If you have to sell in order to buy make an offer and hope that noone outbids you.

guyFAwkesreQuiem · 23/11/2008 07:41

My understanding is that these days banks aren't supposed to just sell it for the amount of money that's owed to them - they have to sell it at reasonable market value - so in theory the previous owners may end up getting something back - once the court costs/fees/whats owed on the mortgage etc is taken by the bank.

So don't be too stingy

guyFAwkesreQuiem · 23/11/2008 07:44

yes here you go

and a couple of questions above that one

"Lenders have a legal responsibility to get the best price for the property that can reasonably be obtained" (so may go for less that it's actually worth - but they still have to be realistic in the price)

wendylanguage · 23/11/2008 22:09

How does one know when a house is a repossession - does the estate agent just tell you?

Original poster
critterjitter · 23/11/2008 23:14

Yes, the EA should tell you. Another give away would be the 'DO NOT TOUCH' tape which the bank's agents put over the bath, sinks, cookers etc. Sometimes the front door window panes are boarded up (where the bailiffs have forced entry).

OP posts:
JillJ72 · 24/11/2008 13:44

Just adding my tuppence worth. We're living next door to an empty repossessed house, the windows have been boarded up, not because of bailiffs but because we made repeated requests until the work was done. The windows are in very bad state (or the glass doesn't exist!) and we didn't want problems in the future with damp creeping through to us, nor did we think potential owners would be pleased to move in and find the house in worse condition than when initially viewed.

Good luck with your purchase!

Original poster
critterjitter · 24/11/2008 17:09

Have been to see it. Its on for £235k. EA says the bank will take offers. They had it on for 250k before.

Downstairs the rooms are not too bad, but upstairs the bathroom is tiny (7'7" x 4'6")and there's an awful corner bath in it which makes the room even smaller looking. To get a decent sized bathroom, you'd either have to do a double storey extension (60k) or use one of the bedrooms, therefore making it a 2 bed house rather than a 3.

The bedrooms are a bit boxy (IYSWIM!).

The staircase that leads onto the landing is cut into (triangle shape missing) at the top so that the stairs can go either side. But its quite dangerous looking. You really need to be careful when you contemplate walking downstairs. So stairs would definitely need sorting out as well.

Double glazing looks old.

I'd go for it if I could get it very cheap.

Where would you start bidding?

OP posts:
Fimbo · 24/11/2008 17:10

£199k

Original poster
critterjitter · 24/11/2008 17:17

Thanks Fimbo. I was thinking around that. Maybe start at 190k.

OP posts:
Fimbo · 24/11/2008 17:25

They can only say no and you could up your offer if you so desired. They may just bite your hand off in the current climate.

Original poster
critterjitter · 24/11/2008 17:49

I'm a bit worried in case the previous owners have done anything to it (in anger at being repossessed). I looked at a repossession a few years ago that had been totally smashed up by the previous owners!

The agent on this housesaid the banks don't tend to want to know about anything (when I asked him about damage), they just want it shifted.

OP posts:
wendylanguage · 24/11/2008 21:46

Good luck if you decide to offer Critter! Keep us posted.

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