Can I buy repossesd house from bank?

gurm

Hi,

I hope someone can give me some advice on the following problem.

My uncle bought a couple of houses a few years ago during the property boom and let them out successfully, however now he is finding it difficult to keep up with the mortgage repayments on both of them. He has ended up paying for the mortgage through his own personal income. The banks have now threatened to reposses the houses unless he pays the outstanding defaulted mortgage payments.

Is there any way my uncle can keep hold of the houses?

Or if the houses do get repossed can myself or other members of my family buy them and if so would my uncle still be liable for the difference between the price he paid for them and the price we buy them for?

Thanks

Gwhiz

Yes you can buy from the banks ALTHOUGH at that stage they will be looking for the best price so it may go to open tender. It may be better to approach the banks with a proposal to buy before it gets to that stage.

Yes - they will come after your Uncle for any shortfall.

PasturesNew

If you buy them at auction, he will still owe the difference between his mortgage and what you bought it for. PLUS: there will have been repossession fees, possibly Estate Agent fees, auction fees and interest on all the outstanding amounts. And, the property will have sat, potentially insecure, for a few months while it happens.

kinglewis

Or if the houses do get repossed can myself or other members of my family buy them and if so would my uncle still be liable for the difference between the price he paid for them and the price we buy them for?

If the houses get repossessed the banks are obliged to get the best price so they will have to put on the open market / put in into auction to prove that they have attained the best price.

Your uncle will be, as previously mentioned, liable for shortfall between mortgage and sale amount, legal fees, extra interest... it really is the last resort for him.

Why wouldn't you buy the property directly from him?

MissMotivation

Why don't you just buy the house from him for the amount of mortgage outstanding? Simples!

MissMotivation

gurm wrote: »

Hi,

I hope someone can give me some advice on the following problem.

My uncle bought a couple of houses a few years ago during the property boom and let them out successfully, however now he is finding it difficult to keep up with the mortgage repayments on both of them. He has ended up paying for the mortgage through his own personal income. The banks have now threatened to reposses the houses unless he pays the outstanding defaulted mortgage payments.

Is there any way my uncle can keep hold of the houses?

Or if the houses do get repossed can myself or other members of my family buy them and if so would my uncle still be liable for the difference between the price he paid for them and the price we buy them for?

Thanks

Yes....pay the outstanding mortgage payments

Why is he not renting them out at the moment?

Fire_Fox

Why doesn't he sell at least one house to limit his liabilities, and work with the family at paying up to date and keeping one on? Has your uncle had any advice from the free debt charities, CCCS and Payplan?

Trollfever

Be aware that if the house is sold at undervalue and your uncle goes bankrupt, the Official Receiver has the powers to reverse the transaction.

gurm

Thanks for all your advice.

I've contacted one of the banks and put in an offer to buy one of the houses. Hopefully I should hear back from them soon.

My uncles family home is under my aunts name, therefore if my uncle goes bankrupt can the Official Receiver take the home as well even though its not in his name and he only lives there? I think the house was transfered to my aunts name several years ago.

dopester

Your Uncle has had a nice ride, but caught out with gentlest of market corrections (in comparison to what might be to come.) He's had his time of being able to proudly strut about, telling everyone of his success as a property-investor/landlord.

My uncles family home is under my aunts name, therefore if my uncle goes bankrupt can the Official Receiver take the home as well even though its not in his name and he only lives there? I think the house was transfered to my aunts name several years ago.

I'm not sure... I'd guess it depends on how long ago the property was transferred. Also I've read the bankruptcy process can include creditors putting a claim on inheritable stuff on the bankrupt (but as it will never apply to me I didn't soak up the info that well during my read about that, so am not exactly sure how it works). You'd probably get a clearer picture to your question on that in the Bankruptcy/Debt forum on MSE.

clockworks_2

dopester wrote: »

Your Uncle has had a nice ride, but caught out with gentlest of market corrections (in comparison to what might be to come.) He's had his time of being able to proudly strut about, telling everyone of his success as a property-investor/landlord.

Do you have an issue with landlords? Why would you assume his uncle would go struting around telling everyone of his success as a property -investor/landlord. You seem to have a chip on your shoulder.

I still don't get why you don't offer to buy it off your uncle first rather than wait for it to get repossessed?