Buying a repossession - time limit for exchange?

togarama

We had an offer accepted on a repossession two weeks ago and were told that the reposession company wanted us to exchange within 28 days. At the time this didn't seem like a problem since we're FTBs with a 15% deposit, AIP, good credit rating and stable employment history etc..

However, we've experienced a number of delays beyond our control (our bank's IT system went down for several days, our bank vetoed our first two choices of conveyancer and were so unhelpful that I switched to a different mortgage lender, the solicitor we finally instructed keeps asking for the same forms returned 10 days ago by signed-for post, my employer sent the payslips I needed to provide to the bank to someone else with a similar name in a different office miles away etc..). I'm now doubting that we're going to make the 28 day deadline and wondering what will happen if we don't?

I know the risk of being outbid at the last minute is going to be higher with repossessions, but in the absence of a higher-paying buyer would it really be in the repo company's interests to drop us just because it may take a week or two longer to exchange contracts? We've already had our survey done so it's clear that we're committed to this purchase.

Has anyone else been in this situation or is able to shed any light on this?

Thanks!

PS I'm wary of broaching this question with the Estate Agent who have a reputation for being totally ruthless and underhand. Currently they're still advertising the property but in a pretty low-key way. They'd go all-out to find another buyer to replace us at the first hint of a potential problem.

Doozergirl

If you are close to exchange then they will wait. They won't drop you - there's little point as they ahve to keep advertising so if someone else hasn't made a better offer in that time then they have to start looking for a buyer again.

You say you don't want to but it's best to keep the agent informed as communication and honesty is key. You need the EA on your side if you are going to be delayed. They just want a buyer; if they've got you then they can sell another house to the next people. Why sell one house twice?

soulsaver

EAs are obliged by law to keep marketing a repo up to exchange, seeking to get the best offer to mitigate the dispossessed owners residual liability.