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My first repo?

alexlyne
Posts: 740 Forumite


Well me and my fiance (finacee??) are about to embark on what could be a very short foray into the world of repos.
I stumbled on a remarkably good value house last weekend, being offered at well below market price with no onward chain. A call to the EA on Monday confirmed this. The house is generally ok, needs a lick of paint and new carpets.
The house is bigger than we really need (4 beds instead of 3), but the asking price is that of 3bed houses. The house itself is only 8 years old.
We have a meeting with the EAs FA tonight. The asking price is on the limit of what we can afford, regardless of whether we can get a mortgage for more. Our sums calculate we can afford to run a house of this size, but seriously struggle (but survive) if one of us were out of a job. No kids... yet. I currently own our current home, and reckon we can get the new house before selling the old one. The FA suggested I rent it out, but we could really do with the money that would be made on the old house (which'll only be around 10K , but that's our wedding next year!)
Now, the tiny twist is this: the EAs have now pulished an offer on the property, this actually occurred on Tuesday. This was for 6.5k under the asking price (which in itself is around 50k below market price imo). I see two possibilities for this offer: someone has actually seen the house and put an offer in, or, someone has put an offer in without seeing it yet, and could retract it.
Anyway, I can't see this as a major stumbling block. It does mean my plan A of offering a silly price then going at it auction style in order to get the house is out the window, and now we would have to consider going in at the asking price, knowing that is our limit, and won't be that disappointed if we are outbid. As other posts are querying potential phantom bids in order to up theirs, this really can't happen in our case!
We are seeing the house on saturday.
I stumbled on a remarkably good value house last weekend, being offered at well below market price with no onward chain. A call to the EA on Monday confirmed this. The house is generally ok, needs a lick of paint and new carpets.
The house is bigger than we really need (4 beds instead of 3), but the asking price is that of 3bed houses. The house itself is only 8 years old.
We have a meeting with the EAs FA tonight. The asking price is on the limit of what we can afford, regardless of whether we can get a mortgage for more. Our sums calculate we can afford to run a house of this size, but seriously struggle (but survive) if one of us were out of a job. No kids... yet. I currently own our current home, and reckon we can get the new house before selling the old one. The FA suggested I rent it out, but we could really do with the money that would be made on the old house (which'll only be around 10K , but that's our wedding next year!)
Now, the tiny twist is this: the EAs have now pulished an offer on the property, this actually occurred on Tuesday. This was for 6.5k under the asking price (which in itself is around 50k below market price imo). I see two possibilities for this offer: someone has actually seen the house and put an offer in, or, someone has put an offer in without seeing it yet, and could retract it.
Anyway, I can't see this as a major stumbling block. It does mean my plan A of offering a silly price then going at it auction style in order to get the house is out the window, and now we would have to consider going in at the asking price, knowing that is our limit, and won't be that disappointed if we are outbid. As other posts are querying potential phantom bids in order to up theirs, this really can't happen in our case!
We are seeing the house on saturday.
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Comments
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Your offer would have to either be the same as but you're in a better position or offer more.
Repos need 28 day exchange too.
There should be plenty more repos along anytime soon.0 -
Oh, the title should be 'Our first repo?' The future missus will kill me if she saw that!!0
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28 days eh? I wont be using the solicitor that I used when buying my first home then! (even though they do have a no-sale-no-fee guarantee)0
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Have you already seen the house or are you seeing it again on Saturday :huh:
The offer must have been put forward in time for the ad to be placed and published which usually takes a few days. Check out the local paper's ad placing policies if you are interested, it will usually give you the cut off times.
I would be cautious about putting in an offer that you know puts you at your limit unless you are going for a long fix on the mortgage. Circumstances change and you don't want somebody else to buy your new home as a repossession bargain in the future!0 -
Good luck buddy! Repo's are a nightmare. Be wary of the EA and be prepared to call their bluff when they start hitting you with mystery offers, otherwise they'll take you for a nice repo ride!I am NOT a mortgage adviser, or anything else!Infact, Im not an anything advisor and really dont know what im on about!0
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At this stage we have only seen photos. I think the ea were reluctant to show us around unless they can be sure we're not wasting their time.
The property was only put on the market last weekend (21st feb).
The offer was published on the website property details (ea website and rightmove) on Monday night/Tuesday morning.
I have no idea about details in local paper, surely the ea will have all the information (if I ask the right questions)?
Our financial limit is based on common sense, not on what we could really afford. When I bought my first home (4 years ago), the bank said I could borrow 120K on my income of the time of 21K. This did not mean I started looking for 120K homes, as mortage payments would have been uncomfortably high! The same can be said this time. I hope we factor in a change of circumstances into what we can afford, and set a limit based on this. And, if the brown stuff does hit the proverbial fan, then can we not sell up and rent? If this house is a real bargain, negative equity should not be a problem...0 -
I cant advise you on finacial things, i wouldnt have a clue. but from my point of view, I worked out what I could afford and then took some off. I could lend upto 120k from the bank. But I looked at it in reality and decided I couldnt take on more than about 75k. This means if I do get into finacial trouble, unless its mega serious, ill always be able to afford my mortgage. Had I gone for the 120k, it would be tight each month and any unforseen circumstances would hit me hard. I dont want to lose my house, therefore, I wont take on too much. Infact the opposite, I took on a very comfortable mortgage (hopefully) and have a low risk of cocking it all up!I am NOT a mortgage adviser, or anything else!Infact, Im not an anything advisor and really dont know what im on about!0
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Exactly right ajay. I was in exactly the same situation when I bought my first house (pretty much the same figures too). All my fixed outgoings were exactly half of my take-home pay, therefore had enough left over to save/spend. When my gf moved in and contributed, it made it even easier.
Now that the mortage will take into account both our incomes this time, in theory, we can afford twice as much as before, as we are both paid more than I was 4 years ago. As lenders are reining in their risk, it does mean that we could still not get one. Thankfully she just got promoted and I'm in a fairly recession-proof job which should be seen favourably.0 -
Well good luck, and I hope it works out u. Im sure you'll figure it out and lets just hope your plan goes to plan. I like to take risks, I am now trying to buy a repo, but on my mortgage, well ill stay on this side of caution, thats where I like to be.I am NOT a mortgage adviser, or anything else!Infact, Im not an anything advisor and really dont know what im on about!0
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Oh, and read my thread called 'What do you think? A rat?'. Its about this repo im buying, could give you a heads up and may help you see things that may come your way in the near future.I am NOT a mortgage adviser, or anything else!Infact, Im not an anything advisor and really dont know what im on about!0
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