Gazundering pre-repossession

leitmotif

Deleted......

Fire_Fox

There is no legal impediment providing you have not exchanged contracts, but someone who has let their finances get to the stage of repossession probably has a shot credit rating anyway, they could well be looking to go bankrupt. If you muck about the vendor could voluntarily hand the keys to the bank and you have lost the house and a few hundred quid in fees, unless you have exchanged in six weeks the bank may refuse to sell at that price. If the house is up for an inflated price that would suggest to me that there is a lot of money owed on the house, they may not be in a position to sell low as there will be outstanding debts. Do you know how much the vendors paid? https://www.houseprices.co.uk And do you know if there are any second charges? Pay £4 to land registry I think.

DVardysShadow

Leaving aside the moral dimension. OK, purely practical. You might think you have the owner overa barrel, but it is the bank who would call the shots if you went in too hard. Any bank which knows the gloating bidder is in the courtroom will argue that the judge should give an order for repo subject to completion by a certain date at a certain price. Of course it is legal to gazunder. But if the other party is having none of it, then it would be a waste of time.

flea72

a judge wont delay repossession just because a sale is in progress, all that will happen is you would then have to start renegotiating with the lender, and they will accept any higher offer up until exchange, so its you who would be over a barrel

so either try and push the sale through quickly now before it reaches court, or expect to be on tenter hooks for the whole of the sale, as the lender plays you off against any other interested party

F

oh_well

If you think it is worth x offer x for it. End of.

Doozergirl

leitmotif wrote: »

Well, something is worth what somebody will pay for it. I'm the only buyer prepared to bail him out, so in that sense I do have him over a barrel. Without lubrication.

Lovely. :eek:

The house may be worth more to the vendor even after all the resulting fees are paid back to the mortgagee after repossession if you're going that low. It depends on how concerned they are about being repossessed.

The judge won't take kindly to the goalposts being moved if he does agree that the sale can go ahead before repossession. They don't always allow the sale to go ahead - if you're mucking around rather than being seen as supportive, they'll cut the legs from under you.

bitsandpieces

You're not 'bailing out' the seller. If the price is right, someone will buy it whether or not you do; if it's overpriced when you buy, it's overpriced.

I'd view the legal proceedings as an additional hassle. Because of this - and the seller's need to sell quickly - you may get a good price. Go too low, though, and the seller would have strong motivation to auction the property - or just to promote it heavily at a low 'offers above' price and see what the best offer is.

Anyway, this isn't a good situation to try to shaft the seller in. Aside from annoying a judge, the seller will know where you live after the sale and you may not like the state of the place when you complete :rotfl: If you're looking for situations in which to be a b***ard, this isn't a good place to start!

jockosjungle

Not sure what you think you can do? Offer him 35k and he'll bite your hand off? He can sell it himself at a bargain price and get his hand bitten off, he doesn't massively need you. He can have it taken to an auction if he needs the money badly

R

GDB2222

leitmotif wrote: »

They paid around £115K. They owe around £35K. No other charges.

The courts are reluctant to issue possession orders, and on those numbers they won't. Or at least they won't initially. I expect that the most the lender will get is a delayed possession order, giving the owner another 6 months to sell. Of course, the seller may not know that.

Fire_Fox

If you are the tenants then mucking the vendor about with silly offers and gazundering could earn you an S21! The property will be less valuable with sitting tenants than it will be with vacant possession.

GDB2222

leitmotif wrote: »

The seller is over a year in arrears and has apparently been ignoring correspondence from debt collection firms, estate agent selling his house, estate agent renting his house, etc. It's a real bury-head-in-sand job. He moved to another part of the country two years ago and didn't even let his mortgage lender know he was gone. I suspect this is a clear repo case, but we'll see - if the court case is open to the public I intend to be in the courtroom sitting quietly at the back.

I think you'll be disappointed. I imagine that the lenders will only be asking for a deferred order anyway.