would you buy a reposession

[kizzie]

seen a house we both like. It needs doing up and we assumed it was a probate case but today have found out that its a reposession.

Just feel uncomfortable about it. DH says 'well someone will buy it'.

Think its partly down to the fact that ive recently had an episode of the anxiety/depression that I get every now and then after original PND 10 years ago. I have very good family / friends support which makes a huge difference and know others not so lucky and things can so easily unravel for people. Feels a bit like benefitting from someone elses misfortune (altho price not partic low.)

Soooo - would you?

Yes.

You wont make things any better for the people by not buying it. They will be responsible for any shortfall between the purchase price and the amount owed, so may be relieved when it does sell.

Yes. If you don't buy it then somebody else will and they will probably pay less for it. At least this way they will get a reasonable price.

If there was a wide-spread reluctance to buy repossessions it wouldn't stop homes being repossessed. What it would do is ensure that the market for them is smaller and therefore they would achieve a lower price. The price is important because if there is anything left after the mortgage is paid off then the owner gets that money. If the sale price doesn't pay off the mortgage then the owner still owes the balance to the mortgage company and the company can (and usually will) chase that person for the balance as soon as they have any equity.

I have bought a repossession in the past. We had bailiffs round a few times as the previous family owed lots of people. It wasn't a problem though and was soon sorted as they could see we were the new owners. Also absolutely anything of any value was stripped in the house - light fittings, door handles, the lot.

I do understand where you're coming from, it is a very sad situation (I have a part time job in an Estate Agents on a Saturday so have seen a lot of repossessions).
But, yes, someone has to buy the house, it no longer belongs to the previous owner.

One word of caution, we have had a lot of people who have been gazzumped just before exchange by someone paying a higher offer (often cash, often an investor).
Try and get exchange for asap and offer as close to asking price as you poss can, if you love the house. Otherwise you could be all set to move and have paid lots of money out on legal fees etc only to miss out at the 11th hour.

i would. if i had the money.

Scurry, I have seen some repossessions like that (fireplace/kitchen/light fittings ripped out, just a shell left) and some where it looks like someone just upped and left one day, leaving all of their furniture and possessions.

Yep. We did! I did feel a bit guilty about it until the story of what had happened came out.It turned out it was owned by someone from Africa who got a large morgage on it, and other properties, rented them out, charging the tennants 6 months rent in advance and money for bills, didn't pay any of the bills and left the country never to be found again!

The only thing I would say is that when we moved in we had trouble with the electricity company etc. We had to prove that we were not anything to do with the previous people. In the end I just wrote a draft letter to anyone I had any financial dealings with explaining that we bought the property from the bank on a certain date and we know nothing about the previous occupiers/ tennants. We've had no problem getting credit or financial services since.

I would go for it.

Yes, it must have been heartbreaking for the previous family....why is there always a dead pigeon in empty houses too?

Yes, but it depends on the state is was in.

I would say I'd buy one definitely if I didn't have to live in it.

My aunt and her husband do this, they have quite a portfolio of property.

And she's had some where even the copper piping was ripped out. Others full of stuff (usually belonging to other creditors)

There was quite a lot of sutff in the house when we moved in, some of which we're still using and some of which we just took to a charity shop of the dump. For the price we paid for it I really didn't mind!

You could look at it from the stance that the previous owners are still liable for the mortgage, so any losses incurred would be reduced by someone else buying the property.

While sad, it isn't easy to repossess a property, and (hopefully) all avenues were explored before the bank moved in (figuratively).

I know someone who during the last recession, just handed the keys back. Think he put them through the bank's letter box. The bank still had to go through the process of repossession though...

If you buy it (or another one), I'd be mentally and financially prepared to do lots of (possibly major) repairs.

If someone has lost a house due to repossession, they probably have not been able to afford any basic upkeep/maintenance. Probably best to assume the house has been neglected for quite a while.

I would.

(and someone bought my place quick enough when it was repossessed)

We did. You are buying from the bank so not benefitting from others misfortune really. That bit has been done and dusted before you've seen the house if you see what I mean.

Get a good survey though, we only got the basic one and then found loads of hidden damage when we moved in. (the previous family had blocked sinks etc and flooded the house. The bank had got a handy man to paint over the stains and put air fresheners everywhere)

Also, make sure you take meter readings the day you move in and photograph the meters. It took almost a year to sort out our electricity because of the previous debts.

Thanks for all the positive responses.

And all the advice too - hadnt thought about some of that (eg. probs with creditors/ electricity companies etc.)

I do really like it - and the condition not really a concern - its been sold to renovate so prepared for that bit.

Yes, and we're actually thinking about putting in an offer on one soon. It is in a good state (aside from being empty for a year). No qualms about the previous owners. They were fraudsters who fled abroad owing lots of people (including a good friend of mine) lots of money.

I'd buy one. But the downside is that it's very easy to get gazumped as the bank owes it to the sellers to get the best possible price.

We were in the process of buying one - seven weeks in (it should've been quicker but our solicitor was crap) and someone gazumped us. We couldn't go to the bank for more as it had already been valued at our price and we didn't have the difference.

Later we found out the people who gazumped us couldn't even get a mortgage - but by that stage it was too late as we'd found somewhere else (slightly bigger, a lot more expensive).

It was very frustrating, but had we got it, it would've been a fantastic deal. And someone was going to buy it.

If it's the house you want and can afford it, buy it and make it into your home. Forget the rest, make your own luck and be happy.

Our house was a reposession. Someone had bought it from the old lady who'd been here for years to do it up.
But then s/he hadn't found the time or money to do it.
It had been left empty for 3 years, and eventually they lost it.

We got post for the old lady (even after 3 years!) and we sent it on, she sent back a nice letter saying how happy she'd been here. All the neighbours were pleased that it wasn't empty any longer.

I didn't really feel anything negative about it because it hadn't been someone's home that they'd lost, it was a failed business plan instead, I suppose.