Repossession / auction

k1984

Hi there,

I wonder if anyone on here would be able to answer this:

We have recently seen a 3 bedroom (plus box room) townhouse within the area we are wanting to buy. It is at a very low fixed price of £155k however was bought new in mid 2007 for £340k (according to nethouseprices and ourproperty). The houses either side were sold for £245k and £240k as new build (all houses are the exact same). There is a house around the corner from it (same house again) selling for £225k.

im assuming that this is a repossession.

Taking the house above. What happens if you buy that, get a mortgage for 90% (£140k). The value of the house is going to be well more than £140k i assume. Now for the daft question - once you buy that house - the value is prob going to me more, so does that then make your mortgage only X% of the value of the house. If that makes sence? Or will this only come into play if you sell?

What are the downsides about buying repossessed houses? could you find it difficult to get credit because the person in the house previously may have been 'blacklisted'?

thanks in advance.

K

tenke

The downside of repos is that the seller will want the best price and you can be outbidded by another buyer if your offer is low.

They publish offers in the paper, so anyone can enter the game at any time, basically you need nerves of steel and be ready to fork out more money in case someone else also wanted the property. It all depends how much you really want it as well :cool:

That house on that price does seem attractive, so you will have to move fast if you wan to secure it, i think :cool:

Anyway just a thought

Good luck with your buying !!!:j

Georgie4

You would need to ahve a mortgage in palce as well because some repossessions insist that you complete within 28 days. The percentage of mortgage will only come into play when you remortgage as you will be securing this mortgage on what you are paying compared to what the valuer of the mortgage company values it at

pipo

tenke wrote: »

The downside of repos is that the seller will want the best price and you can be outbidded by another buyer if your offer is low.

They publish offers in the paper, so anyone can enter the game at any time, basically you need nerves of steel and be ready to fork out more money in case someone else also wanted the property. It all depends how much you really want it as well :cool:

I wanted to know more about this. Do they actually list ALL the offers they get?

m_13

No, they list the highest offer and invite people to put in higher offers.

Doozergirl

m_13 wrote: »

No, they list the highest offer and invite people to put in higher offers.

The highest acceptable offer.

Blacklisting goes with a person, not the address. You may have letters from debt collection agencies which you will need to send back (well, I've just opened them in the past and called the people concerned as it tends to be the only way to get rid of them - and no, it isn't illegal but no doubt someone will want to argue because they always do )

KT1985

We bought a repo at auction for less than its current market value, and it is great, I love it and wouldn't change it for the world. We have had no debt collection worries, the post we just stuck in the letter box and it has almost decreased to nothing now.

One thing to bear in mind, the lender has to be seen to be getting the highest price they can for it. Almost guaranteed that they want more than the asking price. Also, 'tis true that you need your mortgage offer sorting and on the table before you offer- it is law that they have to check out your ability to buy before they can accept an offer from you.

Great book- Buying repossessed property bargains from Lawpack.