Offer refused on a repossession

roger215

Hi,
Two weeks ago I made an offer on a repossessed property, the agent asked me to prove my funds etc and sent me written confirmation of the offer. Yesterday I phoned the agent and was told my offer had been rejected as a higher offer had been accepted by the bank/agent. I asked what offer had been made but was told that they could not tell me and that I had to wait 10 days for the offer to be published, it would be only at this time that I could make a higher offer. The agent went on to say that even if I was to offer a higher price at this time that it may be refused as the buyer may be a near to completion and in a stronger position. The agent refused t.o accept or put my higher offer to the seller before the offer was published
Is this correct as I would have thought the agent should have phoned me the moment someone made a higher offer and gave me the chance to ammend my bid, I also would have thought they should have put my higher offer to the seller as soon as I made it today instead of refusing to accept it.

poppysarah

Don't bid up a repo. Each house that's sold for less lowers the price in the area.

G_M

Why are you duplicate posting. Please delete one.

http://forums.moneysavingexpert.com/showthread.html?t=2047255

Doozergirl

poppysarah wrote: »

Don't bid up a repo. Each house that's sold for less lowers the price in the area.

ie. give up on the house you want for the 'greater good'. The most bizarre comment I've seen on this board, nearly.

OP, they are obliged to pass on offers. You can download the title register for £4 and find out who the lender is with the charge on the property - if you don't know already from the previous formal notification of offer.

I would ask to speak to the sales manager and let them know in no uncertain terms that you know who the lender is and that you know that the EA is obliged to pass on all offers on repossessions as the lender is obliged by law to obtain the best price for the property.

That offer, refused or rejected should be followed up with an official notification of offer sent to you. You should really have been given the opportunity to raise your offer already.

DVardysShadow

poppysarah wrote: »

Don't bid up a repo. Each house that's sold for less lowers the price in the area.

You may think you are doing everyone a favour by poking the lender in the eye. But truth be told, if sale of a repo does not clear the loan and charges, the borrower can be chased for the difference - equally if the loan and charges are cleared the difference goes to the borrower.

So, everyone should just bid based on what they feel the property to be worth, taking into account whether there is damage arising from the repo process

g_attrill

poppysarah wrote: »

Don't bid up a repo. Each house that's sold for less lowers the price in the area.

Repos aren't usually published in the Land Registry stats so future buyers would need to know of that sale specifically.

poppysarah

People who get repo'd will probably be in such a financial mess they'll not see any benefit from someone bidding a few extra grand on the property.
What % of people who get repo'd don't go bankrupt?

Don't ever try and justify paying off someone's debt as a reason to up bid on a house. Giving yourself more debt to pay off someone elses's is the most insane reason to want to pay more.

You are not responsible for other people's debt (Only through Gordon's insane QE and encouragement of debt... which is messing up the economy beyond belief)

Doozergirl

poppysarah wrote: »

Don't ever try and justify paying off someone's debt as a reason to up bid on a house. Giving yourself more debt to pay off someone elses's is the most insane reason to want to pay more.

You are not responsible for other people's debt (Only through Gordon's insane QE and encouragement of debt... which is messing up the economy beyond belief)

Don't ever try and justify manipulating someone not to buy the house they want because you want cheaper house prices.

The OP is not responsible for the price of other people's houses. The only rule is not to offer more than you think the house is worth, after having done plenty of homework.

DVardysShadow

poppysarah wrote: »

People who get repo'd will probably be in such a financial mess they'll not see any benefit from someone bidding a few extra grand on the property.

Sorry, that is ridiculous. They could be in such a mess that the few extra grand is less that they will be chased for by the lender in a few years time

What % of people who get repo'd don't go bankrupt?

Fairly substantial I should imagine and banks do chase for repo shortfalls

Don't ever try and justify paying off someone's debt as a reason to up bid on a house.

People should only bid what they feel a property is worth. I thought I made that quite plain. People should bid up if they want the house and are prepared to pay more.

Giving yourself more debt to pay off someone elses's is the most insane reason to want to pay more.

Er, no, it is not a reason to pay more. It is an objection to your apparent social campaign to knock down the prices of repos specifically. It is not a victimless campaign - it does not hurt the banks, although you could wish it might - but it does hurt the repo'ed. Specifically I object to interference with a free market which damages the finances of the repo'ed section of the community

You are not responsible for other people's debt (Only through Gordon's insane QE and encouragement of debt... which is messing up the economy beyond belief)

Fair point. You are however responsible for not adding to other people's debt by misguided social campaigns

Ian_W

DVardysShadow wrote: »

You are however responsible for not adding to other people's debt by misguided social campaigns

Particularly when there is a fair chance that the EA may be involved in some skulduggery with an acquaintance or developer to obtain the property for less than a fair open market price - to the detriment not only of the OP but also the repo'd former owner. But to the material benefit of the skuldiggers!

OP I would do as suggested re the lender details and also contact your local Trading Standards office. There are legal requirements to obtain the best price and for EA's to pass on offers which don't appear to be being complied with.

Running_Horse

Ian_W wrote: »

OP I would do as suggested re the lender details and also contact your local Trading Standards office. There are legal requirements to obtain the best price and for EA's to pass on offers which don't appear to be being complied with.

It's not just best price. The other bidder may have bid substantially more, and also have been a cash buyer with a proven record of such purchases. No doubt the price will become apparent shortly.

Just out of interest, how much below the asking price did they bid?