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Repossession purchase
NanaHel
Posts: 1 Newbie
Hi
We've just put in an offer for a repossession. We're going to use the equity from our house (it's worth approx £230K and we owe £38K) to purchase the repossessed house, for which we've put in an offer of £54,950 (the asking price of the repossession). We had to put in at least that offer as someone else has also offered the asking price. We've been advised we can have this amount of cash from the equity in our home in principle by our mortgage provider.
If the other offer consists of a mortgage would we be in a better position to be accepted as we're using the equity in our house, ie are we going in with a cash offer?
If anyone could tell me what's the best position anyone can be in and then go down in order I'd be really grateful (ie pure cash first, equity second, first time buyer with mortgage third etc etc).
Thank you.
We've just put in an offer for a repossession. We're going to use the equity from our house (it's worth approx £230K and we owe £38K) to purchase the repossessed house, for which we've put in an offer of £54,950 (the asking price of the repossession). We had to put in at least that offer as someone else has also offered the asking price. We've been advised we can have this amount of cash from the equity in our home in principle by our mortgage provider.
If the other offer consists of a mortgage would we be in a better position to be accepted as we're using the equity in our house, ie are we going in with a cash offer?
If anyone could tell me what's the best position anyone can be in and then go down in order I'd be really grateful (ie pure cash first, equity second, first time buyer with mortgage third etc etc).
Thank you.
0
Comments
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The bank has a legal responsibility to get the best price for the house so you need to put in the highest offer.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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The bank has a legal responsibility to get the best price for the house so you need to put in the highest offer.
Not quite right. The bank has to take the best offer, allowing for price, certainty of it proceeding and speed. Sounds like the OP is in a very good position on both these last two points and has equalled the other offer in amount.No reliance should be placed on the above! Absolutely none, do you hear?0 -
I think if both offers are equal then a sealed tender is asked for and then they must issue a public notice with the offer price for a period of seven days to try and acheive a better offer.0
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flex-c-ment_demon wrote: »I think if both offers are equal then a sealed tender is asked for and then they must issue a public notice with the offer price for a period of seven days to try and acheive a better offer.
This does rather negate the point of the sealed tenders? Wait and see what the other guy bids, then beat it, or let it go.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Not quite right. The bank has to take the best offer, allowing for price, certainty of it proceeding and speed. Sounds like the OP is in a very good position on both these last two points and has equalled the other offer in amount.
But if they offer another, say, £50 they'd be in a good position to proceed AND be the highest bidder!Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
If you look in property papers you will see seven day notices where offers have been received for reposessed properties, I have bought several in this way. I believe it is law or a finance regualation or some type of legality, it also prevents underhanded agents taking advantage. It doesn't stop them all though, I have had experience of an agent telling a property developer of the highest bid they had received, the developer in turn asked me to renovate it after the sale was complete. Little did he know that I had also put in a bid, without saying anymore I ended up buying that property.0
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