Buying a repossession

Hectors_House

A house I tried to view 4 months ago (we turned up to be told the house was no longer on the market) has come back on the market with a different EA and we've been told it's a repo and that the bank 'is open to offers'.

As far as we're aware there is no HIP.

Can the knowledgable folk here tell me what to expect if I should put an offer in (it hasn't gone to auction yet).

I'm not a cash buyer but do have a good deposit in savings and am not part of a chain as I'm living with my folks at the moment.

I did have a mortgage in principle earlier this year when an earlier house purchase fell through - I backed out because of the amount of structural work that was needed and the seller wouldn't budge.

I'm viewing the property on Monday morning.

Thanks in advance for any advise.

GDB2222

Not many all-cash buyers around - virtually none. You are chain-free, so get a mortgage approval in principle and you will be their star buyer.

However, think very, very carefully about buying right now.

hethmar

Once you offer and its accepted they give you 28 days to complete, during which time they still keep the property on the market. I should think the EA will give you a guide re the price that would be acceptable to the Bank.

aj9648

Where can I find repo houses advertised? Is there a internet site with details on?

Hectors_House

Thanks for the advice GDB2222 and hethmar and the note of caution.

We're seeing repos going to action at guide prices as low as £37k here in Nottingham and we've already decided we'll only go ahead if the bank accepts a low offer.

I'm with the camp that believes we've got some lean years coming so we're only going to go into house buying if we can do it at a more realistic cost where one of us can cover the costs if the other loses their job.

hethmar

Son just got a repo flat in London for 50% off the price last sold 18 months ago. The guide prices at auction can be very misleading. The most undesirable may go very cheaply - give away - but the better placed will usually be at least the guide price.

sunnyp

hethmar wrote: »

Son just got a repo flat in London for 50% off the price last sold 18 months ago. The guide prices at auction can be very misleading. The most undesirable may go very cheaply - give away - but the better placed will usually be at least the guide price.

Which auction house was this through?

hethmar

It was an estate agent. They contacted him as hed shown interest in the previous year!! re similar flats. Thing is though, things have now got a lot more depressing and Im wondering if its such a bargain after all?

uk_steve

EA can be crafty we have a repo in my town which was at a figure of 45k so i looked round and fitted for my plans:D

I said i give the asking figure of 45k i can complete in 14 days being a cash buyer and i have a fast legal team which acts for me.
Then yesterday i get a letter and tel call to say we now have 4 people with the same offer, Our Corporate Client are now going to do sealed bids next week..

:rolleyes:

My feelings is silly move with the EA and their client
Because i won't up my offer due to the fact it was for sale at a asking price of 45k
i proberly do a lower offer now where they have changed the goal posts..:p

hethmar

Steve, same thing happened with son - best and final offers by a certain time, he didnt up his offer but still got the flat because he was in a position to proceed.(one person bid a few thou above him but was in a chain) You may find it will frighten a few people off anyway.

Premier_2

uk_steve wrote: »

EA can be crafty we have a repo in my town which was at a figure of 45k so i looked round and fitted for my plans:D

I said i give the asking figure of 45k i can complete in 14 days being a cash buyer and i have a fast legal team which acts for me.
Then yesterday i get a letter and tel call to say we now have 4 people with the same offer, Our Corporate Client are now going to do sealed bids next week..

:rolleyes:

My feelings is silly move with the EA and their client
Because i won't up my offer due to the fact it was for sale at a asking price of 45k
i proberly do a lower offer now where they have changed the goal posts..:p

I had an EA try that when I was trying to purchase a repo. They said the client was thinking of going to sealed bids due to interest from numerous other parties. I just told them I was not interested in partaking in any sealed bids and if that is what their client was going to do I would withdraw my offer from that point and not have any further interest in the property.

Strangely enough, I left them to sweat over the offer I had made for another 48 hours whereupon the EA called me and said their client had decided not to go to sealed bids and would accept my offer.

Don't ever be afraid to walk away from a deal.