Buying a property with a secured loan attached to it

Doczoc

Well it is definitely going down the route of repossession and bankruptcy. So I guess I'll just have to wait and see.

Just thinking, could I be accused of dedgey dealings if I attend the auction for it. I guess it could be argued that I'm pushing up the price to reduce my brothers liability? £45k would be my limit for it.

G_M

Doczoc wrote: »

Well it is definitely going down the route of repossession and bankruptcy. So I guess I'll just have to wait and see.

Just thinking, could I be accused of dedgey dealings if I attend the auction for it. I guess it could be argued that I'm pushing up the price to reduce my brothers liability? £45k would be my limit for it.

Don't see what's dedgey about this. If you are willing to push up the price and pay more, the various creditors get more.

TrickyDicky101

It's not anything like shill bidding either as presumably you would go through with the purchase were you to be the winning bid at £45k or less.

poppysarah

Doczoc wrote: »

Well it is definitely going down the route of repossession and bankruptcy. So I guess I'll just have to wait and see.

Just thinking, could I be accused of dedgey dealings if I attend the auction for it. I guess it could be argued that I'm pushing up the price to reduce my brothers liability? £45k would be my limit for it.

There has been a case recently where someone shill bidded their own items and this created an over-estimate of the value as seen by other people - can't find a url for it right now and you're unlikely to be spotted at an auction if you do it over the phone or put in a pre-auction bid.

If you plan on buying it and your cap is £45k then go for it.
If there are other properties that might yield you a better return then don't.

And it was you who originally refered to your brother as a ducker and diver so I was merely pointing out the merits of renting to someone who might see you as a soft target.
Whilst you might trust your brother it's easier for someone on the outside to spot potential problems.

And yes I do see people wriggling out of debt far too easily - in my world if you spend it you should pay it back.

clutton_2

i dont understand this ""Anyway, the house has been valued at £60K and he has a mortgage of £22k and a secured loan of £35k attached to the house.""

how can it have been valued at £60k if current sale of next door was at 45k ?

Doczoc

clutton wrote: »

i dont understand this ""Anyway, the house has been valued at £60K and he has a mortgage of £22k and a secured loan of £35k attached to the house.""

how can it have been valued at £60k if current sale of next door was at 45k ?

Next door went for £45k at auction. There is another house on the road going for £60k but no interest. Maybe in these tight times estate agents are inflating the asking price because they know they will get beaten down? Dunno

poppysarah

Watching an auction online. His guide prices are lower than reserves though so they're not selling even though people are budding more than the reserves...
Just make his auction sale look bad imo.

nomoneytoday

IMHO why not buy another unrelated house for £45k in the area?
Since the auction prices ended at 41k and 45k, and the other isn't selling at 60k that would indicate to me that you should be lucky

calypso_rhapsody

If you've got £45k to invest in a BTL property might it not be more straightforward to look for another house to buy? You can't really help your ducking and diving brother here - it might be different if you were prepared to pay enough to help him avoid bankruptcy - so it seems that you are muddying the waters unnecessarily?

Avani

poppysarah wrote: »

If you buy it then who will live in it?

The same ducker and diver who wants to wriggle out of his secured debt?

So what if he does? Times are hard finacially and, beleive it not, people need more help than the banks. Bankruptcy is a hard thing to face, people are not just 'wriggling out of their debt' My aunt is facing bankruptcy due to her training business being geered around the new property market and low property sales has caused a large drop in her salery. This is a viable option for her, so she can still live in the house she has worked so hard for and remain in the village she loves.