Bank not accepting full asking price.

Cludwyn

Hello,

Looking for some advice. Myself and my girlfriend are first time buyers and we have found a house which is a repossession, it is on the market for £69950.
So after getting the deposit together we put and offer in for £68000 which was turned down as the bank were holding out for the full asking, we tried £69000 and got the same answer.

We then went and put an offer in for the full asking price as we know that this price was still very cheap for the area, after waiting 5 days for the bank to accept (which we assumed they would) the bank said that they will not accept our offer because the property has not been on the market as a repossession for less than a month they want to hold out for more than the full asking price!
The estate agent has told us that to date we have offered the highest offer (the house was up for sale for £80000 before it got repossessed and did not have a offer more than £65000)

So im just wondering can the bank do this? surely they should have to accept our offer as it is the full asking price the bank agreed with the estate agents prior to it going on the market?

G_M

So im just wondering can the bank do this?

yes. They have a duty to get the highest price possible to offset against the debt on the property.
Even after they accept your offer they will continue to market the property in case a higher offer comes in before you Exchange contracts, so moving fast is imperative with repossessions.
Have your finance/legals/etc lined up and ready.

Cludwyn

Ok thanks for your help, guess its just a waiting game now until they review it at the end of the month.

poppysarah

That's quite insane. They have a duty of care to get on with it too -

Have you put it in writing?

maninthestreet

They obviously think they can get a better price over the next few weeks if they've already received an offer of the asking price.

Cludwyn

poppysarah wrote: »

That's quite insane. They have a duty of care to get on with it too -

Have you put it in writing?

No we have only contacted the EA via phone except for when I went down to give them my agreement in principle.

The EA are as frustrated as us because obviously they want to sell the house as quick as they can. They have also said that they have never had this or even heard of this happen.
I have a feeling that this is not a human decision to reject our offer but a computers, perhaps the outstanding amount owed to the bank is greater than the asking price, which then I question why did they agree with the EA to put it on the market for that price?

I've been advised to maybe contact the FSA about this, but I am unsure what they can do about it if they can at all.

RacyRed

Make your offer of the asking price in writing and give it an expiry date of a week, that might get you a more considered result.

Mum_of_3_3

I was going to suggest what Racy Red has posted.

A weeks notice may get them to wake up and move quicker and if it dooesn't then you could always decrease your offer if they get back to you after the week is up

Good luck!!

M_o_3

Cludwyn

Thank you for the advice, ill get it in writing today

GDB2222

Don't forget to include the magic words 'subject to contract' in your offer letter.

Milliewilly

Interesting, I posted a few weeks back about a repo I tried to view where I rang to say I would be late and the Agent had gone. Anyway - it was on with 2 agents at £229000 and I was told there had been an asking price offer so didn't bother with it. Low and behold its re-appeared with the same two agents this week at £250K. So looks like the Banks are putting their prices up.

http://www.rightmove.co.uk/property-for-sale/property-25539160.html