Gazundering on a repo

Gwhiz

gman20 wrote: »

I'm still paying more than what the original buyers paid, so technically anything over that amount is probably just benefiting the mortgage company who repossessed the house.
Presuming the previous owner didn't remortgage a lot.
Also presuming that banks only come after you for the amount left on the mortgage (Probably including some legal bills).

Oh no, a bank losing out.

Irrelevant. You made a closed bid offer you were happy with and now you want to renege on that. As has been said, bad form.

Running_Horse

gman20 wrote: »

I'm still paying more than what the original buyers paid, so technically anything over that amount is probably just benefiting the mortgage company who repossessed the house.

My understanding is any balance remaining goes to the previous owner.

In the end it's your decision, but the repossession process does not normally work by putting in high bids to secure the house, then reducing to pay less. You are just as likely to end up losing the house to someone else.

But feel free to come back and gloat if it works.

gman20_2

I probably wouldn't have minded if it was closed bid from the start.
Just seemed cheeky forcing that upon me after a little bidding war started.

Whatever. Note made. Gazundering = Touchy subject.

Running_Horse wrote: »

My understanding is any balance remaining goes to the previous owner.

That makes it slightly different. Anyone want to confirm this?

Running_Horse

Nothing was forced on anyone. You chose to bid.

You are free to do whatever you like, so any touchiness is in your mind.

johnson293

gman20 wrote: »

Gazundering = Touchy subject.

I hadn't even heard of 'Gazundering' until a year or so ago when i watched an ITV programme about this guy who bought a property to renovate/develop before the housing market crashed, and ended up finishing it and selling after the crash and only just breaking even instead of making a profit as he'd planned/hoped.

After months on the market and lowering his asking price a few times, he finally accepted an offer which gave him a modest profit - on exchange day, the buyer lowered their offer - by this time he needed to sell, and ended up accepting the offer, which left him breaking even, despite all the time/money he'd put in doing it up (did all the work himself).

As far as I'm concerned, 'Gazundering' is worse than 'Gazumping', as with Gazumping, even though its not nice, its simply someone else being able to afford more than you - and it happens in lots of things in life.

With Gazundering, the buyer is taking advantage of the seller, by offering lower when they may not be in a position to refuse the offer at the late stage.

Anyway, in this situation, I would suspect the mortgage company selling the property would just laugh at you, and go with the other offer.

As with buying a repo and negotiating a price, you aren't dealing an individual owner - your dealign with a company who just need to get the most they can for that property. So if you suddenly drop your offer that they'd accepted, they'll just walk away.

mr_fishbulb

johnson293 wrote: »

As far as I'm concerned, 'Gazundering' is worse than 'Gazumping'

I would say it's in the eye of the beholder.

gman20_2

mr_fishbulb wrote: »

I would say it's in the eye of the beholder.

:rotfl:

(too short)

ILW

gman20 wrote: »

I probably wouldn't have minded if it was closed bid from the start.
Just seemed cheeky forcing that upon me after a little bidding war started.

Whatever. Note made. Gazundering = Touchy subject.



That makes it slightly different. Anyone want to confirm this?

Yes it is true, the balance of the sale (after expenses) whether positive or negative goes to the person who got reposessed.

gman20_2

ILW wrote: »

Yes it is true, the balance of the sale (after expenses) whether positive or negative goes to the person who got reposessed.

Oh right, Ok. That's that then.

silvercar

gman20 wrote: »

Oh right, Ok. That's that then.

Well its not, because the repossessed don't get a say in whether your offer is accepted.

The company handling the repo is obliged to get the highest price it can. So if you drop your offer and the original bid was (a) higher and (b) proceedable, you lose. If you bid is still higher, albeit dropped, then I would have thought the lender was obliged to accept your offer.

Remember that a lower offer will mean that they are obliged to put the 7 day notice in the paper, so you can't just lower your offer on the day of exchange.