putting in an offer for a reposession!

Louise80

Hi guys,

just found a really nice house which has been reposessed and want to put in an offer.....do i put it in now or wait for the notice to go in the paper (with the highest offer)and then offer????? just dont want to lose it

either way if i put in the asking price now...it will then go in the paper with that offer and the option for others to offer higher which will leave me in a pickle.


please help dont know much about reposessed properties.

thanx

babe_ruth_3

If someone puts in an offer and it is accepted it won't necessarily be put in the paper (Or so I was told by an estate agent), it all depends on what the vendor (Bank, lender etc) wants to do. Having said that most do advertise it again.

If it were me I would put in a lower than asking price bid, if it is not accepted and someone elses bid is, chances are you will get a second chance at it if you really want it that much.

double_d77

Might seem a daft question, but where do you find repossion houses??

Also I'd agree that you should put in around 10% less than the asking price for it

Tassotti

Quite often, a bidding war ensues and the property becomes much less of a bargain.

Don't get carried away and end up paying over the odds for it.

Jorgan_2

The majority of lenders will go down the 7 day notice route, they have a duty to get the best possible price for the property & this is seen as one of the fairest ways of doing things. If you get an offer accepted on a repossessed property, its probably worth waiting on getting the survey done until after the seven day notice appears.

Tassotti

Jorgan wrote:

The majority of lenders will go down the 7 day notice route, they have a duty to get the best possible price for the property & this is seen as one of the fairest ways of doing things. If you get an offer accepted on a repossessed property, its probably worth waiting on getting the survey done until after the seven day notice appears.

The fairest way of doing things is to STOP THE REPOSSESSION

Jorgan_2

Tassotti wrote:

The fairest way of doing things is to STOP THE REPOSSESSION

Tass, if you lent someone, something, it would be fair to expect it to be returned.

When entering into a mortgage, people are accepting that they will repay the mortgage to the lender, why should the lender not be able to claim their money back if the borrower breaks their side of the contract?

For many lenders repossession is the last resort. They will work with the borrower to try & avoid this. I have attended a number of evictions recently, one where a father had lost his job 12 months & hadn't got a new job, mum didn't work & looked after the 4 kids, all under the age of 10, youngest was two months old. Unfortunatley they had tried over the last couple of years to keep up with the Jones' & had over extended themselves with their borrowing. Another one had rented her property out, taken the rent from her tenant & not paid the mortgage for six months.

Some people are unlucky & loose jobs thru ill health or no fault of their own, these I feel sorry for. Others are stupid & just don't pay the mortgage, they in my opinion, get everything they deserve.

Jorgan_2

double_d77 wrote:

Might seem a daft question, but where do you find repossion houses??

Also I'd agree that you should put in around 10% less than the asking price for it

Repossed houses are sold either thru auctions or agents. Lenders or the management companies they use will general stipulate that it shouldn't be disclosed to potential buyers that the property is a repo, how we are supposed to do this when we have to place a notice in relation to chattels in the property & usually a seven day notice I don't know.

Don't bank on getting a massive drop between the asking & purchase pricewith a repo, most lenders will get 2-3 surveyors to value a repo & a couple of agents, before setting the asking price.

LizzieandThomas

It is not always the highest bid that gets accepted - its the person in the best position - usually a cash investment buyer. With most repossesions the estate agents will still carry on marketing the property even after your offer has been accepted right up till you exchange. good luck - but dont get carried away !

Doozergirl

Seeing as there are a couple of EAs on this thread now, do 7 day notices attract much attention?

We've bought a couple of repossessions without challenge, though it's certainly a nail biting time and we had to treat the conveyancing money as a bit (more!) of a gamble compared to the regular process. We had to wait over two weeks for a reply this time and were then given a deadline of two weeks to exchange. Luckily we were given the go ahead from the lender just after deadline for the local paper, so we had just over a week to get as far down the line as we could before the ad appeared. Not much breathing space, but better than nothing!

OP, offer what you think is fair for the house. There's no point in playing games. My view is that particularly low offers are more likely to attract competition and bidding wars that may end up in you paying more than you might. Saying that, we did get ours for silly money, but that's all we were prepared to pay.

Jorgan_2

Doozergirl, 7 day notices can attract some interest, although most people seem to feel it means the lowest offer below whats been said in the 7 day notice, 'cos were in good position, being a cash buyer', usually means cash fom related sale or as I was once told, 'cash mortgage.'