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    • Fellton
    • By Fellton 18th Oct 16, 10:16 PM
    • 8Posts
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    Fellton
    Buying recently repossessed home
    • #1
    • 18th Oct 16, 10:16 PM
    Buying recently repossessed home 18th Oct 16 at 10:16 PM
    Hello

    New to this forum.. any help or thoughts very gratefully received. Relevant info.......

    •house repossessed today

    •want to settle debt and get property back

    •what do I need to know about this process

    Backstory.......
    Own house with ex. We separated and he left property in 2007.
    He was declared bankrupt in 2012
    Tried to buy his interest in property from his trustee.
    Trustee asking for unreasonable buy out. Wanted back-rent from lodgers since 2007.
    Resulted in me having to declare bankruptcy as no way out.
    Left property empty in 2013.
    Assumed repossession had happened soon after.
    Trustees fail to repossess house.
    Received notification of repossession order recently.
    Circumstances changed very recently (last week) and new partner and I interested in settling debt before repossession.
    Couldn't prevent repossession as needed more time to gather funds/get ex to sign documents etc.
    Thought that was the final deadline. Maybe not? What can we do if we have some funds available?
Page 1
    • AdrianC
    • By AdrianC 18th Oct 16, 10:36 PM
    • 12,042 Posts
    • 10,442 Thanks
    AdrianC
    • #2
    • 18th Oct 16, 10:36 PM
    • #2
    • 18th Oct 16, 10:36 PM
    If the house has already been repossessed, then unless the lender are willing to talk directly, you're in pretty much the same boat as any other potential purchaser.

    If you've just had a house repossessed, are you really going to be able to get a mortgage, though?
    • Fellton
    • By Fellton 18th Oct 16, 10:55 PM
    • 8 Posts
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    Fellton
    • #3
    • 18th Oct 16, 10:55 PM
    • #3
    • 18th Oct 16, 10:55 PM
    I was in discussions with the lender this afternoon before and after the house was reposessed, I was surprised but yes, it seems there is a possibility we can still settle the debt before the house goes to market. I've been given a number to call a different department of the lenders in a couple of days.

    Mortgage would be possible.
    • G_M
    • By G_M 18th Oct 16, 11:06 PM
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    G_M
    • #4
    • 18th Oct 16, 11:06 PM
    • #4
    • 18th Oct 16, 11:06 PM
    Then I fail to understand what information you are seeking here.

    The property is now owned by the bank which repossessed it.

    They will at some point sell it.

    If you wish to buy it, and have the funds to do so, and they are willing to discuss selling it to you, my advice would be to discuss the possibility with them.
    • Fellton
    • By Fellton 18th Oct 16, 11:36 PM
    • 8 Posts
    • 0 Thanks
    Fellton
    • #5
    • 18th Oct 16, 11:36 PM
    • #5
    • 18th Oct 16, 11:36 PM
    Just wondering if anyone had experienced this process before. I suppose questions around how fast the lenders like to put these properties up for sale, is settlement negotiation possible? Is a settlement from us preferable to open market sale at this stage? Will they have the property re valued? what's the difference between my position negotiation wise before and after repossession? These are the kind of things I'm considering...
    • G_M
    • By G_M 19th Oct 16, 1:11 AM
    • 37,032 Posts
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    G_M
    • #6
    • 19th Oct 16, 1:11 AM
    • #6
    • 19th Oct 16, 1:11 AM
    Just wondering if anyone had experienced this process before. yes, but not me

    I suppose questions around how fast the lenders like to put these properties up for sale,
    usually pretty fast - they don't want an asset sitting around doing nothing and costing them money
    is settlement negotiation possible?
    dpends on the bank in question. Some may have a sympathetic approach (esp traditional building societies) and incline towards assisting the former borrower
    Others may be more hard-headed.
    However you've already said they are willing to discuss.......
    Is a settlement from us preferable to open market sale at this stage?
    preferable to you? Yes!
    preferable to them? Depends
    Will they have the property re valued?
    of course
    what's the difference between my position negotiation wise before and after repossession? These are the kind of things I'm considering...
    Originally posted by Fellton
    Before repo you have a much stronger position.

    2 key questions will be
    1) how much is the bank owed?
    2) how much is the property worth?

    The bank will certainly want to get back what it is owed if it can.

    So if you can afford to pay what the bank is owed (including its substantial legal fees for reposession etc!), the bank may well be satisfied and not bother offering it on the open market.

    But if you cannot afford to pay what the bank is owed, and the bank values the property higher than what you can offer, then they are likely sell it on the open market and thus get back more of what they are owed than you can give them,
    • davidmcn
    • By davidmcn 19th Oct 16, 7:45 AM
    • 3,842 Posts
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    davidmcn
    • #7
    • 19th Oct 16, 7:45 AM
    • #7
    • 19th Oct 16, 7:45 AM
    In my experience the lender will always consider settlement by the borrower up to the point at which they've exchanged contracts for a sale to someone else. Possibly even if you don't have the full amount (as they will have additional costs and risks if they carry on with a sale). But you will need to actually have the funds immediately available.
    • AdrianC
    • By AdrianC 19th Oct 16, 7:46 AM
    • 12,042 Posts
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    AdrianC
    • #8
    • 19th Oct 16, 7:46 AM
    • #8
    • 19th Oct 16, 7:46 AM
    I suppose questions around how fast the lenders like to put these properties up for sale
    Originally posted by Fellton
    You know they haven't yet.

    is settlement negotiation possible?
    You know it is.

    Is a settlement from us preferable to open market sale at this stage? Will they have the property re valued?
    Unless you can come to an agreement with them, then you actively WANT them to achieve the best possible value, because it reduces the amount you owe.

    what's the difference between my position negotiation wise before and after repossession?
    Before repossession, you owned the property,
    After repossession, you do not own the property any more.
    • Fellton
    • By Fellton 19th Oct 16, 8:28 AM
    • 8 Posts
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    Fellton
    • #9
    • 19th Oct 16, 8:28 AM
    • #9
    • 19th Oct 16, 8:28 AM
    Thanks for the replies. Very helpful.

    Any idea (ballpark) how much repossession legacy fees can amount to?

    Thanks again
    • silvercar
    • By silvercar 19th Oct 16, 8:38 AM
    • 34,045 Posts
    • 142,324 Thanks
    silvercar
    You can get the repossession set aside if you act quickly.

    Before you rush to do that, you need to check on the trustees in bankruptcy. If they have a 'beneficial interest' in some of the equity in the property they will want their share.

    Getting the repossession revoked and then finding the trustee coming after their interest would be frustrating to say the least.

    As you had left the property before it was repossessed, it wouldn't have been considered your home at the time of repossession and that may give the trustees longer to claim their interest.

    May be worthwhile to post on the bankruptcy board.
    • Fellton
    • By Fellton 19th Oct 16, 8:40 AM
    • 8 Posts
    • 0 Thanks
    Fellton
    Silvercar, the trustees, both of them have no interest in the property. That was their position a couple of years ago anyway. Good point though, will definitely double check that.
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