Advice on buying a repossessed house

Thebantamboy

I am seeking advice regarding buying a repossession house.

We have placed a bid for a house which was advertised at 215k. When we first put in a bid the highest offer was already at 220k so we went in with 221k. The building Society (via the Estate Agent) immediately asked for our highest possible bid. We didn’t want to do this as we have had a mortgage offer up to 265k but obviously didn’t want to go straight in at that level. Therefore we told them 221 was our highest offer.

We were then informed that the other party had the highest bid at 222. This was advertised in the local press and higher offers were invited. Therefore we went back and offered 225. We were then instructed that we had to come back with our highest bid by close of business that day. We told them 226. We were then informed that the other bidders had the highest bid and that we were now excluded from placing any more bids, even though they were willing to consider any higher bids from any other 3rd party right up to exchange of contracts!

How can they do this? They have already told us they have a duty of care to get the highest amount possible (in the same way we have a duty of care to ourselves to get the house for the lowest price possible). I am still willing to bid higher but they don’t seem to want me to! We have a mortgage offer, and we have a first time buyer behind us who are knocking on our door to get us out! We can exchange in 10 days time and the Building Society is aware of this. I feel as if I am being bullied into paying the highest amount possible for the house without the opportunity to go through a fair process.

poppysarah

Thebantamboy wrote: »

How can they do this? They have already told us they have a duty of care to get the highest amount possible (in the same way we have a duty of care to ourselves to get the house for the lowest price possible).

. I feel as if I am being bullied into paying the highest amount possible for the house without the opportunity to go through a fair process.

They do and you are.

Walk away and buy a different house. Less stress all round.

jhe

hi bantamboy.we have bought a repo and in all honesty it was one big headache from start to finish, feeling constantly stressed incase someone comes in with a higher offer at the last minute. nothing is guaranteed and everything is on the vendors side. we also had to make final bids, but we were told anyone can offer more right up to the day of exchange,i am surprised they havnt forwarded your higher offer, but then the other buyer could well up theirs. we were told once we were seen to be progressing with the sale the vendors would stay with us unless somebody made a substantially higher offer. having said that we were also told any other offers over £500 had to be put to the vendors.

theartfullodger

Recognise that if buying a repo people will think (rightly or wrongly) you are taking financial advantage of other people's misery..

If happy to be thought of like that, go ahead...

Cheers!

Lodger

jhe

lodger, cant answer for every repo but in our case the previous owner had caused damage to property which was reflected in the price we paid. for what we paid and what the repairs are costing we paid a good price for the property we could have bought a house in good condition for what we are paying out, but we knew this when we bought. as for others trading on peoples misery! if the house is not bought it will only deteriate in time meaning the people who the house was repossesed from are just going to lose more money as time goes on.the circumstances of the repo we bought is probably different to most, but even so the houses have to be sold , whatever and surely the sooner the better for the previous owners

theartfullodger

jhe

Yup, Understand... I was simply, calmly, trying to point out what people will think... not what actually happened...so bantamboy knows what he'll be facing...

Cheers!

Lodger

clockworks_2

theartfullodger wrote: »

Recognise that if buying a repo people will think (rightly or wrongly) you are taking financial advantage of other people's misery..

If happy to be thought of like that, go ahead...

Cheers!

Lodger

if people think of you like that who cares.

planning303

theartfullodger wrote: »

Recognise that if buying a repo people will think (rightly or wrongly) you are taking financial advantage of other people's misery..

If happy to be thought of like that, go ahead...

Cheers!

Lodger

Rubbish,, if you can take the stress buy a repo. Personally i couldn't take the stress and didn't go through with the offer i made on one. The estate agents in my area have started advertising for a better offer on right move rather than just in the papers...

Oh and i'm pretty sure that legally all offers have to be passed onto the vendors.

Lodger.. You do realise that if people who actually want to live in the house don't buy it, it will eventually go to auction. At which point a developer will step in and literally pay !!!!!! all. He will then rent it out (after turning into 4 flats) and help rebuild an unsustainable housing market!

Good times

Thrugelmir

The lender wishes to sell the property for the maximum price it can.

It doesn't want to wait around while auction style bidding goes on. £1k increases at a time.

So the lender quite rightly asks for your valuation of the property. The price you are prepared to pay.

If you purchased a repossession property at a price less than market value. Then you've got a bargain. Be happy with that.

cattie

When bids are invited for a property by a closing date, some bidders are clever enough to word their offer something along the lines of £1k higher than the highest stated amount submitted. This could well be what has happened in your case, thus a bidder determined to get the property, even at a higher price, wins out.

silvercar

Interest on the mortgage repayment clocks up day by day, if the lender doesn't ask for final bids, the interest bill carries on increasing all the time. It is fair and reasonable that the lender asks for your final bid, after which you would be excluded. After all, if that really is the final bid, you won't have a higher one.