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Buying a repossessed property?
vicvan
Posts: 2 Newbie
We sold our property 2 years ago and as the purchaser could not raise the deposit at the last stage we agreed to lend them the money as a secured loan for a 12 month period.
Unfortunatly we were conned as they never paid us a penny back, and had lied about other property they said they owned and were using as security.
We repossessed the property as the second charge, [the bank that provided the mortgage being the first]
In May we had interested parties to buy, but they could not secure mortgages as the property market had begun to drop.
By July another valuation revealed that we were in negative equity and our only option was to hand it over to the bank or try and buy it back and hold onto it until the market recovers some.
The bank had another valuation which came back at £300.000, which is not enough to even cover the mortgage.
We have offered them £250.000 to keep under the 3% stamp duty and can have the money available in a few weeks. Our offer has been rejected and they said they will put it in the hands of the receivers, and be in touch to take it off us soon. How easy is it for them to sell?
Our dilema is do we offer more when the market is falling so fast? or walk away. How strong a position are we in as a second charge in possession.
Unfortunatly we were conned as they never paid us a penny back, and had lied about other property they said they owned and were using as security.
We repossessed the property as the second charge, [the bank that provided the mortgage being the first]
In May we had interested parties to buy, but they could not secure mortgages as the property market had begun to drop.
By July another valuation revealed that we were in negative equity and our only option was to hand it over to the bank or try and buy it back and hold onto it until the market recovers some.
The bank had another valuation which came back at £300.000, which is not enough to even cover the mortgage.
We have offered them £250.000 to keep under the 3% stamp duty and can have the money available in a few weeks. Our offer has been rejected and they said they will put it in the hands of the receivers, and be in touch to take it off us soon. How easy is it for them to sell?
Our dilema is do we offer more when the market is falling so fast? or walk away. How strong a position are we in as a second charge in possession.
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Comments
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Not 100% sure I'm following your post. But when the mortgage provider repos, that doesn't wipe out the debt like a bankruptcy. The bank can sell for what it can get, then chase you to make good any loses.0
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amcluesent wrote: »Not 100% sure I'm following your post. But when the mortgage provider repos, that doesn't wipe out the debt like a bankruptcy. The bank can sell for what it can get, then chase you to make good any loses.
The Op doesn't owe the bank anything.
To the OP, you were conned out of your deposit. Sorry, but it's gone. OTOH, the house was sold 2 years ago, which now looks like a very, very good move.
The bank have the first charge and can sell the property to get (most of) their money back. They have procedures to go through. Typically, they get two valuations, insist on a certain amount of advertisement, etc etc etc. They have to cover their backs. No way are they going to do a quick sale to you.
Unless you have an attachment to this particular house, it's no better for you than any other repo. It'll always remind you of this unfortunate incident with your buyer. I would just leave it. BTW, whatever reason you sold it for originally presumably still applies?No reliance should be placed on the above! Absolutely none, do you hear?0 -
BTW, I'm not an expert on this sort of situation, but I don't think that someone with a second charge has any way of putting pressure on the bank with a first charge.No reliance should be placed on the above! Absolutely none, do you hear?0
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