House purchase becomes a repo!

doozy_floop

Help please!

We had an offer accepted on a first property before Christmas, but the sale was slow to progress from the seller's end. We seemed to be getting close to exchange, until today, when we received a call from our conveyancer advising that the seller was much more deeply in debt than anyone had suspected and the property is being repossessed at 11am today!

We know that the sellers had two mortgages over the property but do not know who exactly is doing the reposessing. We do still want to buy the flat, but what should we do? Is there any way to persuade whoever has taken ownership of the flat that they should take us on as ready-made buyers? Might we have to just give up on it?

Thanks!

ajay_182

Well, im not sure what the process is. But if it gets put out as a repo for sale. You may pay at least a few grand less, it could work in you favour. However, as i keep saying today, repo's are nightmares!! Theres a few threads about them on here, just search repo. You may be able to prsuade them, there will be a notice put in the window with who to contact with regards to the property, it may take a few eeks to line up an estate agents and stuff. It may even go to auction. I wouldnt give up on it, if its the house you want, just be prepared for a few headaches and lots of ringing and waiting around. Good luck!

Robert_Sterling_3

Anybody who reposseses a property, by law, must obtain the best obtainable price for it.
One way of satisfying this requirement is by selling the property at a public auction.

poppysarah

Robert_Sterling wrote: »

Anybody who reposseses a property, by law, must obtain the best obtainable price for it.
One way of satisfying this requirement is by selling the property at a public auction.

So why has one EA told someone they don't put the offer in the paper to publicise it?

I've seen one EA list the offers on rightmove & their site - which I think is probably better than putting a listing in a local paper which barely anyone reads...

m_13

Your conveyancer should know who is repossessing the property. If not they need to find out.

You may end up paying less for the property that you were before so don't jump into anything. However, you need to be prepared to walk away although it sounds like it is going to cost you quite a lot of money.

m_13

poppysarah wrote: »

So why has one EA told someone they don't put the offer in the paper to publicise it?

I've seen one EA list the offers on rightmove & their site - which I think is probably better than putting a listing in a local paper which barely anyone reads...

I think any EA who is brave enough to not publicise the offer with a seven day notice is being overconfident when it comes to proving they got the best price. Everything is supposed to be transparent to stop EAs selling to their pet developer and when it comes to repossessions where a low price may leave a remaining debt this is even more important.

However, an auction is considered to be a public sale where anybody (with the funds) is able to bid and so the price reached, subject to reserve, is the price it sells for.

Buying post auction via a private treaty appears to be a half way house. That is what we are doing. Bought under auction terms but not at the auction and no seven day notice required. It would appear if they don't sell at the auction then this is some proof of the private treaty price being the best price.

poppysarah

m_13 wrote: »

I think any EA who is brave enough to not publicise the offer with a seven day notice is being overconfident when it comes to proving they got the best price. Everything is supposed to be transparent to stop EAs selling to their pet developer and when it comes to repossessions where a low price may leave a remaining debt this is even more important.

So who has the right to ask where they publicised sales?

And what is an EA isn't a member of a national association?

doozy_floop

Thank you everyone: so is it inevitable that the mortgagee will be re-advertising the property in one form or another and couldn't just take our offer as it stands? Not that this would be a bad thing if we could buy it for less, but we've already waited for ages!

JFC_2

As the previous owners had a lot of debt, will that mean that for a while the address will be on a bad creditors list or will it immediately vanish as soon as the house is sold?

silvercar

The solicitor for the seller should be going to court and getting the repossession suspended on the grounds that a sale is iminent.

alexlyne

JFC wrote: »

As the previous owners had a lot of debt, will that mean that for a while the address will be on a bad creditors list or will it immediately vanish as soon as the house is sold?

I'm curious to know this as well.
Also, do you get hassled by utilities chasing payments?