Repossession 28 Days

matjw2000

Firstly if this has been already answered I apologise.

I am currently going through the motions of buying a repossessed flat, when I had my offer accepted by the repo company I was told that the exchange of contracts had to be completed within 28 days, this point was stressed a few times.

Can anyone explain this to me, I've had many versions told to me but no solid answer.

Robert_Sterling_3

It means that after 28 days you have to exchange contracts. i.e. Pay a deposit, perhaps 10%, and fully commit yourself to completing the purchase at some time later, usually about four weeks. It is a bit like the point of no return. Up to the exchange of contracts either side can drop out. Once you have exchanged contracts niether side can drop out.

matjw2000

Ah ok, I've heard many people say that the buying process can take many months and the estate agent made me assure them that my solicitor would be able to turn around the purchase within the 28 days because it was so short.

I suppose my question is why is the turn around time capped at 28 days? I've been told this is standard to repos

Robert_Sterling_3

A repo is a forced sale. Usually at a competitive price. Often at auction. Sometimes the vendor changes their mind and goes for an auction at some stage diring the 28 day period leading up to the exchange.

So if you are thinking of buying a repo you now know about the 28 day period. You need to have a mortgage agreed in principle before you start looking at actual houses.

matjw2000

Thanks, I've had a bit of a rough ride with this, I put in a offer on the flat on the 26th Jan and had it accepted and during the 3 weeks up to the 16th Feb I had the valuation done and the mortgage offer through. However a week before the 28 days was up I found out that the estate agent or the repo company had mis-communicated and the sale hadn't been kick off and the draft contract hadn't been sent. So I had the 28 day turn around reset to another 28 days (annoying) and apparently I can't make it go any quicker. (even more annoying) So I have to go though the nail biting wait again.

m_13

I'm surprised they won't go any faster. We exchanged on a repossession on Monday this week and had a date by which time we had to exchange (was less than two weeks after our offer was accepted) and had to complete 28 days after that.

Have you signed the draft contract yet? Sent your deposit to your Solicitor? We did these things on the 12th February so when things started to go pear-shaped with our exchange we were able to point out that we were ready on the 12th and it wasn't our fault that nobody else was until the 20th! On the 20th there was a different problem when our Solicitor send the exchange funds 'held to order' and then went home without releasing them but that's another story altogether :rolleyes:

I'd be pushing your solicitor and signing the contract (which isn't dated) and ensuring all finances are in place so your solicitor can push for exchange sooner. For most repossessions they've been repossessed for a while by the time they come on the market so there should be very little for the vendor's solicitors to do.

Our vendor is represented by a large company of Solicitors in the Newcastle area who deal almost exclusively with repossessions in teams named after colours. They seem super efficient. So much so we are now pushing for completion 14 days after exchange as it's just the money to transfer now.

jamtart6

ooh thats horrible for you we had a few probs at the end of buying our repo. It was done within 21days before xmas so it can be done (completed on 23rd dec!)

Ring the solicitor several times a day, he'll soon get it through. I just bugged him so much, he knew not to mess around (he hated me but i dont care, i have my house! )

Has it been in the paper for 7 days yet?

poppysarah

Someone's said not all lenders require it put in the paper - don't know how lawful that would be if someone accused them of not having made all efforts to get the best price possible.

I'd warn solicitors when you're getting quotes you're considering repos -

zxsilver

it really depends on how good is your solicitor

when the offer has been accepted subject to 28 days deadline, get the mortgage ready as soon as possible. During the time when you are waiting for you formal motgage offer, you could ask your solicitor to prepare all the legal paperwork ready for you to sign off. As soon as the mortgage offer arrives, send the 10% deposit next day, and then ask your solicitor to do exchange of contracts on the following day. Target done!

week 1: offer accepted
week 2: sign the paperwork
week3: mortgage offer arrive and exchange of contracts

that is what I did in Feb to buy a repossession

matjw2000

Thanks Guys, I contacted the Solicitor (who I also think is beginning to dislike me) and he told me that so far he hasn't received the draft contract (10 days after the restart of the 28 days). I have my mortgage offer in hand and my deposit ready to go. It seems like the repo company is deliberately stalling (although this is probably just my imagination). I've checked the local papers for the notice but it hasn't appeared yet. The EA told me that one most likely would have to be done.

poppysarah

I'd give them a nudge via the EA. Tell them your solicitor hasn't had draft contract yet...