Repossessed Property Buying: Quick Briefing Discussion

H.Org

What you really should be careful about is when the contract arrives - there will be an Agreement with it that imposes special conditions, ususally around seventeen of them the biggies will be:
You have to complete within a very limited time and, if you fail to complete at around lunchtime on the day of completion you will lose your deposit, AND, if the property is subsequently sold for less than you offered you may also become liable for the shortfall, (you will have to pay the difference between what you offered and the selling price) to the seller PLUS all their legal costs. Almost all repo's are sold with No Title Guarantee (you may not get the deeds when the sale is complete and, you may not even get them within the 21 days they say will provide them in. You could end up having to then sue for the deeds.

If you have a survey, thinking that if something awful shows up they will give you something off the price you offered - FORGET IT. They won't even give you a £1.

As always - its BUYER BEWARE!! EVERYTHING is stacked in the sellers' favour so get a really good solicitor.

SLTrooper

Hi guys,

There are alternatives to the sites mentioned below.

Pure Acquisitions act as 'Buyer Agrent's' for subscribers across the UK.

We have nutured some fantastic relationships with some of the largest auction houses in the country which now provide us with access to hundreds of distressed sales and reposession each week, the majority of which are exclusive to us.

Without trying to sound too 'salesy' its always worth giving us a call if your interested in distressed & reposessed sales it may well be worth giving me a call on 01903 868597 or drop me a line at [EMAIL="julian@pureacquisitions.co.uk"]julian@pureacquisitions.co.uk[/EMAIL]

Many thanks

Julian

Drop me a line at [EMAIL="julian@pureacquisitions.co.uk"]julian@pureacquisitions.co.uk[/EMAIL] and

silvercar

SLTrooper wrote:

We have nutured some fantastic relationships with some of the largest auction houses in the country which now provide us with access to hundreds of distressed sales and reposession each week, the majority of which are exclusive to us.

:rotfl::rotfl:

Please explain why any auction house would keep lots "exclusive to us". Surely an auction house wants to publicise its lots, not keep them a secret!

PropertyEarth

Hi Debbie1980, jsward60,

We apologise for any difficulty you had getting onto the site last week. As you might imagine, the site had huge visitor numbers after Martin featured it in his email, which led to some slight technical issues. Rest assured, we have now upgraded and moved the server!

Thanks for your interest in PropertyEarth and hope to see you on the website very soon.

PropertyEarth.Net

geoff2

loveandlight wrote: »

Now that it has been promoted by the MSE site to go buy repo properties at up to 30% and with the massive following this site has, by promoting repo properties in such a focused way, means more demand for these kind of properties will now have been created as the MSE' ers flock to bid on them and it will no longer make it possible for anyone to buy at such a discounted rate, so where's the saving in that? You're more likely to get a better discount making offers through estate agents now.

Well, you could say that about all the advice on MSE but I can't say I've seen savings rates withdrawn, special offers closed, or indeed auction property prices rocketing because they've been highlighted on the site. Are you saying it would be better if Martin kept a few things to himself? I hope not. Having read through all the contributions on this thread, I very much doubt that MSE fans will be "flocking" to bid. It's not the housing equivalent of a yellow-stickered pack of mince in Sainsbury's. There are plenty of warnings against getting carried away and most potential repo buyers are likely to be cautious. Surely it has to be approached with a much different mindset to normal purchase and needs careful management to see it through and if you can do that, you'll get a bargain.

harryhound

H.Org wrote: »

What you really should be careful about is when the contract arrives - there will be an Agreement with it that imposes special conditions, ususally around seventeen of them the biggies will be:
You have to complete within a very limited time and, if you fail to complete at around lunchtime on the day of completion you will lose your deposit, AND, if the property is subsequently sold for less than you offered you may also become liable for the shortfall, (you will have to pay the difference between what you offered and the selling price) to the seller PLUS all their legal costs. Almost all repo's are sold with No Title Guarantee (you may not get the deeds when the sale is complete and, you may not even get them within the 21 days they say will provide them in. You could end up having to then sue for the deeds.


If you have a survey, thinking that if something awful shows up they will give you something off the price you offered - FORGET IT. They won't even give you a £1.

As always - its BUYER BEWARE!! EVERYTHING is stacked in the sellers' favour so get a really good solicitor.

The standard contract makes the buyer responsible for the seller's consequential losses, should the seller fail to complete (I should know, I once had to get my solicitor to change the contract to "the buyer will lose only their 5% deposit").

The firm of solicitors will know absolutely nothing about the property they are selling hence the "limited title guarantee" - the same applies if the seller is an executor. Just make sure as a buyer that you pay special attention to the iff's and but's before signing; and warn the solicitor not to leave everything to his clerk.

What do you mean by "deeds" - what you get on the land when you take possession has to be registered at the Land Registry - that leaves the possibility of the dry rot certificate and the planning permission for the extension going missing. ?

The huge advantage is that you are not part of a chain. I've been stuck at the head of a chain for 6 months in the example of the 5% deposit above - I also agreed to a 3 month completion ( which in fact turned out to be 6 weeks) to get things moving again. You cannot expect the tame solicitor of a mortgage provider to wait that long, especially if the amount of the mortgage is covered.:rolleyes:

H.Org

Dear Harry

Thank you for your comments but I didn't say Limited Title Guarantee - I said 'NO Title Guarantee' which is exactly what it says. As for Deeds I mean the title deeds to the property - which you may not get and have to sue for. (The latter referring to properties bought at auction).

harryhound

I'm still confused about this "deeds" business. Your title is at the Land Registry. Most of the rest of the !!!! in "the bundle" can be thrown in the bin?
Surely if the seller cannot provide sufficient evidence for the buyer to register a free hold to a house, then you don't pay them?
Obviously the mortgage provider cannot guarantee that the previous owner has not got a dispute with the neighbours, has not left his pregnant wife behind and you can expect hassle from creditors etc. BUT normal enquiries on site should reveal most of this information if it is relevant.

DMC75_2

Please advise with a repo , is it 28 days to complete from offer accepted or some other way ?

johnson293

DMC75 wrote: »

Please advise with a repo , is it 28 days to complete from offer accepted or some other way ?

It is generally 28 days after offer is accepted to exchange contracts, i.e. the point at which everything is legally binding. Completion (moving day) can then follow to suit all parties in the process.

However, when we bought our repo, the buyers for my property were dragging their feet while my solicitor was ready to exchange at 28 days, so we actually exchanged on day 52 after our offer was accepted.

The 28 day deadline is often quite flexible - you just need to prove to the vendor/repo company that you are doing everything you can to get to exchange. As long as you are proceeding through the process quick enough, it may not matter if you dont exchange on day 28.

However, remember that you are at risk of being gazumped right up until you exchange contracts, so do push your solicitor and any other parties to get things sorted as soon as possible.

Good Luck!