how do banks sell a repossed house

j_and_h

Hello

i just need to know the process of how a bank sells a repossed house ??

Dose an auctioner contact the bank if so how ?

Or dose the bank contact the auctioner if so how ?

I think this is vital information for any home owner whos in difficulity and ive tried finding the awnser but am hitting a brick wall

hethmar

Repossessed houses dont always go to auction, they may be sold through local agents.

j_and_h

Thanks for a quick reply

but how do the houses get to the estate agents do they contact the banks if they do do you know how or do the banks cantact the estate agents if so do you know how ?

googler

OK, a bank with branches in Glasgow and Edinburgh has provided a mortgage to a client who bought a house in Aberdeen.

The bank has repossessed the house and wants to sell it.

Is it anything more complex than open up a yellow pages or go to yell.com for Aberdeen, look in the section 'Estate Agents' and phone round them asking if they want to sell it for them?

How do they contact each other? By phone, fax or e-mail, I would think.

Hope this helps, but I'm really not sure what you're getting at......

hethmar

Well, the banks or the mortgage provider would be the ones with something to sell, so they would contact the agents. As googler says, no doubt they have a department which will just ring the local agent and get the best deal they can re commission.

What is it that you really need to know?

poppysarah

They're the ones with a bit of paper in the window.
You'll spot that and the yellow tape on the loo & sink.

They get sold a variety of ways.

Some people reckon some EAs do dodgy things and pass on offers only from their mates on them.
Some EA play fair
And some go to auction sooner rather than later.

Completion is 28 days normally and you can't check half the things you want to. And it's easie if there's no mortgage to organise.
There's going to continue to be shedloads of them imo.

hethmar

I get the impression from the OPs first posting that they are concerned about being repossessed rather than looking to buy a property?

G_M

When a home-owner defaults on a mortgage, the account is eventually passed to the bank/BS's Repossession Dept. They work with the Legal Dept to go through the legal/court process to gain possession. Then they decide whether to put the property to auction or use a local estate agents.

They may appoint an asset management company to do this.

Either way, the Repossession Dept or asset management company will choose/appoint an auction house/EA which will then manage the sale.

There is a legal obligation to get the best price possible in order to mitigate the home-owner's loss, since any shortfall between sale price achieved and mortgage outstanding remains as a debt to the homeowner.

As to how the auction house/EA is contacted - in writing.

Benji_Brown

Usually, when a property is respossesed, a middle man (asset management company) will be intructed to sell the property on behalf of the bank.

The asset managment company will then instruct an Estate Agent to put the property on the market and get it sold. The Estate Agent communicates with the management company and the management company communicate with the bank.

** G_M's post is a good explantion of what happens