Slow Repossession Purchase

jhe

hope it goes well for all of you. hopefully we complete next week, we can then breathe a sigh of relief.

Milliewilly

johnson293 wrote: »

Our repo purchase also took 7 weeks, despite the 28 day 'deadline'.

My side was also ready at/around the 28 day mark, but our hold ups were being caused by the buyers of my house - the husband worked away and they were not sorting their paperwork quick enough.

Anyway, luckily we didn't have any higher offers come in on the repo, so the vendor/management company were happy to keep extending the deadline, as I/my solicitors had done everything we could to exchange around 28 days.

That seems to be the case generally - as long as you (the buyer) are proceeding and getting stuff sorted, the vendors seem happy enough if it passes the 28 days, as long as you keep them informed of the progress and of any potential hold ups.

Sorry don't understand your comment - if your buyers weren't ready on your property then you couldn't complete on the repo in 28 days unless you were funding it cash? Do you mean the repo company waited for your chain? I thought repo companies were very strict about the 28 day deadline unless it was them holding up the sale?

jhe

in our case they were happy to extend the sale as long as things were ongoing and progressing from our side. but the longer it takes the possibility remains that someone comes in with a better offer as the property is still being marketed until exchange of contacts. we also found that everything is dictated by the vendor and we had to accept everything on their terms.

Milliewilly

Out of interest what was the mortgage valuation on the repo - did they value it lower than the accepted price?

jhe

had 2 valuations they both came in at the asking price, with advisories added. the valuations for the property after advisory work completed differed by thousands

johnson293

Milliewilly wrote: »

Sorry don't understand your comment - if your buyers weren't ready on your property then you couldn't complete on the repo in 28 days unless you were funding it cash? Do you mean the repo company waited for your chain? I thought repo companies were very strict about the 28 day deadline unless it was them holding up the sale?

Yes, sorry - the repo company extended the deadline due to my 'chain'.

My solicitor had draft contracts ready, and my formal mortgage offer around the 28 days.

We were pressing my buyers solicitors, but due to the husband working away, some of the paaperwork was unsigned, and progress fromt heir end was slow.

So what I meant was, if my buyers had been up to speed, we would have been in a position to exchaneg aroudn the 28 day deadline (give or take a day or two).

However, as deadlines passed, I kept in contcat with the sellers EA and advised that we were ready, but waiting on my buyers - they passed this onto the vendor who were 'happy' to extend the deadline, presumabely as we had virtually everything in place, in terms of buying the repo, and the delays were out of our hands.

It probably helped that there was clearly little/no other interest in the property I bought, but had there been other/higher offers, they may not have been as eager to extend.

Milliewilly wrote: »

Out of interest what was the mortgage valuation on the repo - did they value it lower than the accepted price?

Not sure if that question was to me, but the house we bought (3 bed semi with detached garage) went on the market at £119,950. It then dropped to £114,950. Then as we accepted an offer on our house, it dropped to £109,950.

After our first couple of (lower) offers were rejected, we finally had an offer of £100,000 accepted, which was the max. we could afford (£85k mortgage + 15% deposit).

So we got it 10% below the final listed price, and the mortage valuation valued the house at the agreed price.

Milliewilly

jhe wrote: »

had 2 valuations they both came in at the asking price, with advisories added. the valuations for the property after advisory work completed differed by thousands

Thanks just curious as I have had what I considered to be a very acceptable cash bid rejected by Lloyds bank on a repo in favour of someone needing a mortgage so I am wondering if the phone may ring.

jhe

i would think if they went with someone applying for a mortgage the other buyers must have put a good offer in.they also wont accept any offer unless proof of funds have been shown.the buyers must have had at least an a.i.p and in our case it didnt take long for the bank to decide whether to give a mortgage offer.

togarama

We've been told we should complete next week too. Hmmm. Believe it when we see it.

Good luck to everyone else.

Milliewilly

jhe wrote: »

i would think if they went with someone applying for a mortgage the other buyers must have put a good offer in.they also wont accept any offer unless proof of funds have been shown.the buyers must have had at least an a.i.p and in our case it didnt take long for the bank to decide whether to give a mortgage offer.

I had to take proof of funds into the EA before they would forward my offer onto Lloyds Bank.