Due to complete friday...someone has put in a higher offer

Saver-Rob

GDB2222 wrote: »

I think you are worrying unnecessarily. Selling a repossession is a process that the lenders are used to. They have thousands of these to get rid of each year now. Basically, all they want is to get shot of the property, whilst leaving themselves bulletproof against any possible comeback from the borrower (who after all is responsible for the balance of the loan). They have a checklist to go through, and as long as they can tick all the boxes they are happy.

Consequently, they advertise the property after they have accepted your offer, because that is on the checklist, but the last thing they want is somebody else coming along and rocking the boat. Consequently, the advert is normally very vaguely worded, often with an address and a price but no details of the property. The estate agent will probably do his best to put off anybody replying to the advert. After all, it just means more work for the estate agent and probably virtually no more commission at the end of it.

Similarly, the person at the lender's end just wants to tick the boxes and get on with the next case. So, if somebody does put in an alternative offer, the lender will probably scratch around for all sorts of excuses for not accepting it. The lender will ask for a report on the alternative buyer from the estate agent, and of course the estate agent will oblige the lender by badmouthing the buyer.

In short, once somebody has got into the sort of position the OP has got into, the lender and the estate agent both want the OP to succeed, as it is very much in their interests that he does so (or at least it is the least work for them). The big advantage for the lender of having the extra potential buyer in the wings is that the OP is now very unlikely indeed to gazunder.

Overall, buying a repossession at the moment is considerably less fraught than buying privately, where the private seller can simply change his mind and not sell at all or may find that they are caught up in a chain that does not move.

Thanks for your post, its appreciated and has answered some of my own worries. I have spoken to the EA and he said that obviously his duty to the bank is to get as much as he can for the property. He did say however that he is personally against the whole idea of somebody being able to come in and offer more and me get 'outbid' even after the cost of surveys etc. He stated that although the property would still be on the market technically that he does not go out of his way to advertise it and said that his own time is better spent trying to sell properties that have had no offers. He did say that obviously he would have to submit any offers that did come through though, so until you get those keys I guess there is no way of knowing (but I suppose that is the case with private sale, as you stated).

The difference being with a private sale you can put an offer in on the basis the vendor withdraws the property from the market and accepts no more viewings? This is something you cannot specify with an offer on a repossession (?)

TopKat*1

Im in a funny position with a repo aswell, put an offer in 2 weeks ago--was accepted, then we had to wait for the 7 day notice which took ages as it is only advertised every 2 weeks in my area. Anyway it went in and 7 days is up tomorrow, but estate agents have told me someone came in with a higher offer, and repo company will make their decision tomorrow. They will not tell me how much these other people offered as they said the repo company may ask us to make our best and final offer.

But how do I know this other party exist??

littlened

TopKat*1 wrote: »

Im in a funny position with a repo aswell, put an offer in 2 weeks ago--was accepted, then we had to wait for the 7 day notice which took ages as it is only advertised every 2 weeks in my area. Anyway it went in and 7 days is up tomorrow, but estate agents have told me someone came in with a higher offer, and repo company will make their decision tomorrow. They will not tell me how much these other people offered as they said the repo company may ask us to make our best and final offer.

But how do I know this other party exist??

We were in the same position. We put an offer in, then a few days later the EA said they'd had another offer and that the selling company asked if we would put our best and final offers in. We put an offer in 5k above the asking price, and our offer was accepted, that was at £90250.

We had some problems getting a mortgage and rang them up and said we needed a bigger deposit and couldn't afford the deposit on 90k, so we got the house reduced to 85k. Then the boiler was stolen, and we got it down to £82500. We're almost 8k off our original offer.

Anyway, my point is, to this day we don't know the other party actually existed. The same today, our IFA thinks the EA telling us there was another offer this morning was a tactic to see if we would increase our offer by 2.5k, which we couldn't.

Luckily for us our offer never went in the paper because they didn't advertise over christmas.

mrsnow101

TopKat*1 wrote: »

Im in a funny position with a repo aswell, put an offer in 2 weeks ago--was accepted, then we had to wait for the 7 day notice which took ages as it is only advertised every 2 weeks in my area. Anyway it went in and 7 days is up tomorrow, but estate agents have told me someone came in with a higher offer, and repo company will make their decision tomorrow. They will not tell me how much these other people offered as they said the repo company may ask us to make our best and final offer.

But how do I know this other party exist??

About what % under the asking price did you offer?? I'm only asking, as i'm (well, me and the OH) contemplating putting an offer in on a property - although it would be way under what it is advertised at...

TopKat*1

15% under asking price but it asking price was quite cheap because it had been decreased by 20k in few months, im imagining they just want to get rid of it.

Thing is if i stick to my offer im quite likely to loose it, if i up my offer a bit at least i got a chance

what do u think...stick or increase slightly

Saver-Rob

My non professional opinion is that it depends how important this place is to you. On one hand it may be pefect for you but on the other if things dont work out when you do eventually find somewhere you might be glad you didnt up your offer this time around.

Some things are just a gamble - but ultimately if its a home you want then you need to offer what it would be worth to you.

TopKat*1

we have seen about 10 houses in last 6 months, all similar, in a new estate as that is the area we have chosen, and none of them have really got my pulse beating but this one we instantly had a attraction too. We cant explain why as its no better/worse than a couple of others, it just feels right and I always go with my instinct have never been let down before.

I am concerned about money though as its a big step, I am of the opinion i have to do it at some point may as well be now!!!

Saver-Rob

I understand the money worries. I am in a similar position at the moment, we have seen a property but there is so much to consider, especially financially. Best of luck though.

TopKat*1

Well today is the day I find out if the repo is mine or not, still dont know if I am going to go higher if they ask for a best and final offer, I think I am going to have to as we know somebody else has put in a higher offer.

m_13

You may have seen my other posts about the repossession we are buying. We made an offer, it was accepted and then were told another higher offer had been made. Only £2k but we didn't want to increase our offer. We said we weren't willing to get into a bidding war but reinforced when we could exchange and complete and asked if the higher offer fell through perhaps they could let us know. A horrible week later we had a telephone call saying that the higher offer had been withdrawn and would we like them to put forward our offer again. We said yes and got a letter stating when we had to exchange and complete by for the offer to stand.

However, the property was still marketed and on the Friday we were due to exchange there was a mix up with the deposit monies (nothing to do with us) and so we didn't exchange. We were then told there were two higher offers waiting to see if we didn't exchange and so had an incredibly awful weekend waiting to see if the vendor was going to allow us to exchange on the Monday morning or if they were going to go with one of the higher offers. Luckily we had paid over our deposit and signed the contracts over a week before and were able to prove the delay was not our fault but our solicitors. They exchanged and we complete next Tuesday, 10th March.

If you cannot afford the £2.5k then don't offer it especially if you've got a new boiler to fund! I wish you luck today. It's hard to walk away but it can work out!