Bidding on a repossession house? Anyone encountered this before?

Milliewilly

I am bidding on a repo at the moment and there are 2 other bidders. The EA has told me that they don't always put a notice in the paper it depends on the bank reposessing the house. I thought this was a legal requirement but the EA has told me if an acceptable offer is on the table then the bank just want their money back asap and will go with that offer.

jhe

yes we were also told that by the e.a. When they accepted our offer the ea back tracked, they told us it had to go to public notice as the bank has to get the highest possible offer.we offered the asking price and it still went to public notice.i was prepared to walk and still am if a bidding war starts,

superskilly

From the repos we have viewed recently, they have all been under- valued, which gets people interested.
We didn't go for either in the end, but both have got offers above asking price.

missk_ensington

Hi for what its worth my mum has a property company, she buys up property and then rents them out, theyre all on 15 year loans so that when she retires, all the properties will be owned outright and the rent is her income. So she's pretty au fair with buying property having around 20 in her portfolio and she refuses to entertain a repossession property for this very reason.

You can have a survey done and pay mortgage arrangement fees - and the agent will still keep trying to get a better price for the property. They have an obligation to do so, and will put a notice in the paper saying "we have received an offer of £X please contact us if you have a higher offer" and this can go on and on and on.....

Theres a very good chance several people will lose hundreds on survey fees during one repossession, I would advise keeping well away from one

Milliewilly

True but there has to be a cut off at some point otherwise ads could keep going in the paper and bids could dribble in. Thats if an ad goes in at all!

Doozergirl

missk_ensington wrote: »

Hi for what its worth my mum has a property company, she buys up property and then rents them out, theyre all on 15 year loans so that when she retires, all the properties will be owned outright and the rent is her income. So she's pretty au fair with buying property having around 20 in her portfolio and she refuses to entertain a repossession property for this very reason.

You can have a survey done and pay mortgage arrangement fees - and the agent will still keep trying to get a better price for the property. They have an obligation to do so, and will put a notice in the paper saying "we have received an offer of £X please contact us if you have a higher offer" and this can go on and on and on.....

Theres a very good chance several people will lose hundreds on survey fees during one repossession, I would advise keeping well away from one

Fantastic advice from someone who has never bought a repossession passing on advice from someone who doesn't buy repossessions telling other people not to buy repossessions.

I have bought more than one repossession. I do not entertain those where there is a bidding war going on but those that I have bought, there has not been any competition to start with and each one has gone through smoothly. I have never even had news that there is another bid on the table. I would not actively avoid a repossession, in fact, whilst they are stressful it does go through quickly and it's all done and dusted with no vendor politics which is also a huge cause of sales falling through.

It used to be one in three sales that collapses. It must be more at the moment. I have a suspicion that the statistics on repossessions would actually be much lower due to the initial vettting by the vendors and the habit of best and finals where there is a lot of interest.

jhe

hi,the house we are trying to buy is cheaper than others in the area, but it is in very poor condition, in fact its been trashed. for what it will cost to put right, it will be equal to buying a house in reasonable condition in the area, but we will have a blank canvas to work on hopefully! and definetley a challenge. we are not buying to make a quick profit,it is to be our home if we eventually complete.the possible loss of survey, solicitor fees is a concern and must put lots of people off even trying to buy a repo.milliewilly, i think if your offer is accepted and solicitors involved,completion dates given anyone else would have to offer a substantialy more than your accepted offer. good luck hope you are succesful

Milliewilly

I have been to the EA today with proof of funds. They tell me there are 2 other offers, one is 'significantly' more than mine but is not cash. The EA told me the bank were waiting for me to take in proof of funds before they made a decision so I am hoping that means that my offer is the one the bank are going to go for otherwise they could have just accepted the higher bid that needs a mortgage. A decision is supposed to be made by the weekend.

jhe

sounds promising milliewilly.but if same happens with you as happened with us they might ask you for your final bid if others are interested in the hope you will up your offer. good luck and will you keep us posted on outcome?

Milliewilly

Hi
They asked me if I would up my offer today when I called in and I said no.
Will keep you updated!