Re-Posessed Homes for buying

Frankie66

Ok am in the process of buying a re posessed house and have been told that even though the company has accepted my offer....up untill the day we exchange contracts someone else can come in and if they make a better offer can take the house off us?? And we lose ALL the money that we put up eg:solicitors/servars
This doesnt seem fair as the area we are in there seems to be only homes that have been repocessed
can anyone offer me some advice plzzzzz

clutton_2

cross your fingers and hope... thats how it is...

Thrugelmir

Then drive the sale along. The vendor just wants rid of the property. Nothing more.

You could pull out of the sale as well. So its not a one sided situation either. You may even find a cheaper repossession locally.....

BeccaBell

Thats the way Repo's work! I am in the same boat and my advice is to move as fast as you can. If you are two days from exchange and someone comes in with a slightly higher offer they are unlikely to ditch you as the process starts again but if you faff them around and are behind (I think you get 4 weeks to exchange) then it goes. You have to work out is the property worth losing your money for? Good Luck!

MobileSaver

As Clutton says, that's simply the way it is with repossessions.

On the plus side you generally get a better deal if you are successful and there's no chain so it can be quicker.

On the negative side the EA has a legal obligation to accept higher offers up until exchange of contracts.

G_M

MobileSaver wrote: »

As Clutton says, that's simply the way it is with repossessions.

On the plus side you generally get a better deal if you are successful and there's no chain so it can be quicker.

On the negative side the EA has a legal obligation to accept higher offers up until exchange of contracts.

Although the basic point is correctly indicative
a) the EA does not accept anything. They just pass offers on to the bank
b) The bank does not HAVE to accept a higher offer - as has been said, if you are close to exchange, they are unlikely to accept a marginally higher offer that would set the sale back weeks.

But they might.

Jojo1daffy

Because of the possible (and probably almost certain) mortgage shortfall involved on the repossessed property the mortgage lender (now seller) has to by law, accept the best possible price in order to reduce the shortfall which the original borrower will have to repay to them. If another offer is made that is better than yours then the mortgage company will have to accept that. The estate agent also has to make a declaration that the property was properly advertised and the best possible price was achieved. If they just accepted your offer as the final sale when other parties were interested in purchasing then they wouldn't be doing that (achieving the best possible price) and the borrower could make a case to not repay the shortfall in it's entirety.

Fire_Fox

Frankie66 wrote: »

Ok am in the process of buying a re posessed house and have been told that even though the company has accepted my offer....up untill the day we exchange contracts someone else can come in and if they make a better offer can take the house off us?? And we lose ALL the money that we put up eg:solicitors/servars
This doesnt seem fair as the area we are in there seems to be only homes that have been repocessed
can anyone offer me some advice plzzzzz

What gave you the idea that the property game was fair? Any vendor can pull out up to the day of exchange, there is nothing binding about an offer in England and Wales. It's down to you to put the best offer you can, then push the sale along. Get your mortgage in place and recommended conveyancing solicitor instructed before you offer, then chase chase chase.

MegaMiniMouse

For a lot of complicated reasons, it is possible that my house will be repossessed next summer.

So how will it work? If I get an 'offer to buy' at less than the mortgage settlement figure, will the lender negotiate with me about how to make good the shortfall? Will the lender release the charge on the property even though they have not received all their money?

If I decide to 'cut my losses', and walk away from the property, how soon will the lender take action against me so that I am no longer responsible for the buildings insurance and the council tax etc?

I'm trying to avoid getting myself into a situation over which I have no control, so any advice would be appreciated.

MMM

DVardysShadow

MegaMiniMouse wrote: »

For a lot of complicated reasons, it is possible that my house will be repossessed next summer.

So how will it work? If I get an 'offer to buy' at less than the mortgage settlement figure, will the lender negotiate with me about how to make good the shortfall? Will the lender release the charge on the property even though they have not received all their money?

If I decide to 'cut my losses', and walk away from the property, how soon will the lender take action against me so that I am no longer responsible for the buildings insurance and the council tax etc?

I'm trying to avoid getting myself into a situation over which I have no control, so any advice would be appreciated.

MMM

Please start a new thread. This one is about buying a repo'd house. It is going to get confusing to mix your situation in the middle.

clutton_2

""I am no longer responsible for the buildings insurance and the council tax etc?""

you can bet your boots that even if you walk away that the Lender will add these onto yout final bill......