Advice on buying a house that has been repossessed?

GDB2222

AndyMac wrote: »

Hi there, I'm new to the forum and was hoping I can ask for some advice on this thread rather than start a new one (I know other forums don't like new threads on similar subjects!)

We've had an offer on a repossessed house accepted and the final notice ad is going in the local paper on Thursday, so fingers crossed;)

The EA selling the property on behalf of the broker has told us that the 21 day period to complete / exchange begins once the contract has been 'released' to us rather than when they accepted the offer (last Friday)- is this correct???

Also, is it possible to complete before the 21 days (i.e if everything is in place can it be done earlier) or do we have to wait out the full period and risk other bids?

Hope somebody can help!

For goodness sake, don't panic. Once a vendor sends out a draft contract to you, the process gathers momentum. Even if you go past whatever deadline they set (21 days or whatever) they may not notice for some time. Even if they do, what can they do? Readvertise the property - but they probably are keeping it on the market anyway. Basically, you are ahead of the pack, and as long as you are sensible about it (ie don't take months) there won't be a problem. I've bought about half a dozen repos in my time, and they are a piece of cake compared to buying from private vendors.

The only other advice I can give you is not to buy at the moment, during a falling market, but I guess you don't want to hear that.

AndyMac_2

Thanks for the advice GDB - it's greatly appreciaited:beer:

I now have a few more questions if anybody can help...

If we were to be outbid during the notice period, where do we stand - can we get the EA to prove they have a bona fide higher offer (or do we have to take their word for it)? As you can probably see, I'm a natural cynic.

How much work is normally undertaken between exchange and completion and typically, how long would this normally take?

Finally, how often do people tend to outbid during the notice period???

GDB2222

In my experience, you probably won't be outbid. It's certainly the last thing the estate agent wants. The sellers of repos are banks and so on. They don't mess about pretending to have bids that they don't have. One reason is that they are bureaucrats. Another reason i

Most of the legal work is done before exchange, which is why this stage can drag on. It's usual to leave 4 weeks between exchange and completion, but that's really just so people can get packed etc. All the finance and so on needs to be sorted out before exchange. I really don't see how the vendors can insist on exchange within 21 days, unless you are literally a cash buyer.

claire1978_2

Good luck Hoora and Andymac.

Well since offer has been accepted, the finance co has decided not to put a notice in the paper, EA says that he will not accept any new viewings on it and the only people who are allowed to put in an offer now are the other people who viewed it, but he knows they cannot get the finance.

Im still skeptical, wont believe it till i get the keys.

Meantime solicitor and my finance all in place and have memorndum of sale.

Wish market was better so i could sell mine nice n quick but hey ho!

JayZed

claire, if it's not being nosey I'm intrigued to know how much you offered in the end?

little_light

the first house I brought was a repo, and all those intersted in it had to put in sealed bids. Although it needed slight modernisation, all that was really wrong with it was that it was dirty! It was advertised at roughly half of the value of the surrounding houses, It too had token meters which cost me nothing to have removed. Overall I got a bargain and a great opportunity to get a foot on the housing ladder. :j

claire1978_2

hoora & Andymac updates please?????

ElleWoods

claire1978 wrote: »

Wish market was better so i could sell mine nice n quick but hey ho!

Hi Claire,
I viewed a repo property at the weekend and am really interested in it, but I also have a house to sell so am stuck at the moment. Can I ask how you are funding your new purchase? Are you renting your current house out?

Also, what did you offer on the repo house in the end?

Thanks,
CC x

claire1978_2

hi Cuba

whats the house like you are interested in? Am renting mine, buy to let mortgage, it seems like the only way at the moment.

ElleWoods

It's a 3 bed end terrace in a block of 4 (but is as large as a semi), needs a bit of work but is liveable and the work could be done over time. Some of the previous owner's things are in the house and it needs decorating throughout but with a good clean it would be fine to live in. It's in my ideal area too, close to my parents and near a good school (I have a 2 year old son, so v important!).

Not sure about renting mine, would rather sell to be honest. What will you do if you don't have a tenant by the time your mortgage starts for your new house? Will you have to pay 2 mortgages?

CC x