Buying a repossesion Question

Clarkey_24

Hi

I was just wondering if someone could help me with my question. Myself and my partner have made an offer on a repossesed property and we are just awaiting an answer from the company that owns it via the estate agent.

Basically we have a mortgage in principle and our deposit ready to go. But the estate agents have called me this morning and advised me that even though we have our mortgage in principal with our bank we still have to go into their branch and see their financial advisor. I asked what this was for and she said it's to check our finances and so we can be 'signed off' by their advisor as its a requirement with repossed houses.

Can someone confirm if this is correct? Surely, the people who should be querying my finances is the bank, the ones who will hopefully approve my mortgage.

Thanks

Lisa

not_loaded

Most EAs will genuinely want to ensure that you’re in a position to proceed. They also would want the opportunity to try and do a bit more business if they can.

I would call in as requested, but be ready for their selling tactics.

Clarkey_24

Thanks for your response.

Im just concerned that they will start running credit checks and things that will show up on my files, I dont want to jepordise getting a mortgage approved with the bank and I dont think that they will be able to beat the deal from the bank anyway.

So am I right in thinking this is not a requirement, merely just an attempt to try and get my business?

not_loaded

I suppose you have to consider how an outright refusal to visit would look.

vegasvisitor

You should not give too much of your financial details to an estate agent you are considering buying from, as this is a conflict of interest. Your financial details allows them to push you on the price.

I would provide them with a copy of your agreement in principle...that is your proof that you have a mortgage agreed. Also, if you're not sure, why not tell your own financial advisor and ask what they think?

Think very carefully before doing this. It may well be that they have a good reason, but it may also not (and in desparate times they may be trying to get more business!).

Clarkey_24

Thanks for your reply.

I also thought that they may just be trying to get details of my finances to see how much I can afford and if they can try and push me to up the price.

My question is, in order to buy the house do i have to go and have this meeting with them or can I just direct them to the bank that we have the mortgage in princial with?

4littleone

Hi,

my partner and i bought a repossesion. You are not obliged to go to a meeting with them at all. You can provide them with a copy of the mortgage offer and that is more than adequate.
We had the same thing and it was just a sales tactic. We refused to go in, they got a little shirty, we still refused to go in and pointed out that the vendor had accepted our offer and we had shown proof of the funds available.
The sale went through in under 5 weeks.

chickmug

Sorry to cut and paste a reply I have given so often but it is below.

I feel strongly, that as an agent, it is up to us to make fully sure the person offering has got the finance. MIP or AIP or whatever you call them are sometimes from a dodgy broker who will say anything to get you to pay them to go through a sham application to find out the eventual offer is short of what is needed. Then the dodgy broker can arrange a personal loan!!!!!!!!!!!!!

So I would want to scutinise new buyers but would accept information provided from a source I knew - such as a local broker. I would not tell my seller client to have the confidence if I lacked that same confidence and in this day and age you (as agent) could get sued for giving bad advice.

Just be carefull you don't get sold to BUT the deal they offer could be better than the one you already have!

---

Following from the NAEA Code of Practise

Offers
a) By law you must tell clients as soon as is reasonably possible about all offers that you receive
at any time until contracts have been exchanged (in Scotland, missives have been concluded)
unless the offer is an amount or type which the client has specifically instructed you, in
writing, not to pass on. You must confirm such offers in writing at the earliest opportunity and
keep a written or computerised record of all offers you receive.

b) You must not discriminate, or threaten to discriminate against a prospective purchaser of your client’s property because that person refuses to agree that you will (directly or indirectly) provide services to them. Discrimination includes the following:
• Failing to tell the client of an offer to buy the property.
• Telling the client of an offer less quickly than other offers you have received.
• Misrepresenting the nature of the offer or that of rival offers.
• Giving details of properties for sale first to those who have indicated they are prepared to
let you provide services to them.
• Making it a condition that the person wanting to buy the property must use any other
service provided by you or anyone else.

c) You must take reasonable steps to find out from the prospective purchaser his source and
availability of the funds for buying the property and pass this information to the client.

chickmug

4littleone wrote: »

my partner and i bought a repossesion. You are not obliged to go to a meeting with them at all. You can provide them with a copy of the mortgage offer and that is more than adequate.

So if there is more than one party trying to offer, the same amount, it could boil down to who the agent felt was the most co-operative. So need to be careful as opposed to being obstructive as the banks will expect the agent to do this aspect very thoroughly. More than the man in the street type of client.

Clarkey_24

Thank you for the reply both.

I have no problem going in to see them its just I wasnt 100% sure why it was needed. Now Ive got a little more information and I understand it a little bit better I dont mind popping in and listening to what they have to say.

Chickmug, can I just ask are you an estate agent or in that type of proffesion? If so, can u tell me what this meeting will involve? Will they basically just ask us for some figures or will they start doing credit checks etc?

Thanks

chickmug

See my signature.

It should only be a basic chat through, no credit checks, but I can't legislate for all agents and what they may do. As many are smarys b's.