Buying repossessed property and 21 day exchange condition

Crosby

Hi all

I have a few questions, regarding mortgage and the conveyancing business..

I am buying a repossessed house, very stressfull matter as it turns out to be.. I have an agreement in principle with Nationwide and they have already done a valuation (which was ok according to my broker) but i still havent received a final mortgage offer. Its now been 3 days, and from my epxerience mortgage offers come out all finalised pretty much next day after a valuation takes place. I know Nationwide has been restructuring and all, do I take this into account and give them a few more days or do I start thinking worse? What could possibly go wrong with the mortgage offer if i had it provisionally agreed and valuation was ok?

Second question, coz it a repossessed house, one of the conditions is that we complete in 21 days, now solicitors are aware, working their way through. I am sitting on a time bomb, any day i could be outbid with a higher offer and I am already up my budget. Does anyone know of any problems arising from any land, environmental and other searches that could potentially delay my case?

Gosh, i sound so pessimistic, any comments and advice is very welcome and highly appreciated.
Thanks

Lynsey

One of the pitfalls when buying repossessions is getting gazumped - it can be costly.
Some great bargains though if it's goes through - I prefer auctions.

Good luck.

Lynsey

Crosby

Thanks Lynsey, would you know what the legal terms are for the public notice of offer? are they open to offers before the exchange of contracts or there is a time scale, say 7-14 days from the day of publishing the notice, or does it vary?

Lynsey

The ones we looked at had a 7 day timescale from the date of the public notice. Offers are generally accepted before the exchange of contracts, but not automatically accepted by the mortgage lender, it depends how far down the line it is.
It has two sides really, as a buyer you don't want to lose any costs by being gazumped and just want the sale to go ahead smoothly, but as someone who has had their home repossessed, then obviously they would want the highest price as they would still be liable for any shortfall. It depends what side of the fence you are on really.

Good luck, I personally think this is a good time for buying (in certain areas), there can be some silly prices about - it will pick up at some time and I think 20%-25% gains could be had once it does pick up.
I do know someone who works with mortgages and they still state that the banks have been told to hold back repossessions, but there are lots in excess of 7 months arrears and the repossessions could rise in 2011 (the arrears can't just escalate). Maybe still a further drop??

Lynsey

Thrugelmir

Crosby wrote: »

Does anyone know of any problems arising from any land, environmental and other searches that could potentially delay my case?

Every property is different.

I bought a new house in the early 80's. Sold it in 2005.

When I came to sell transpired that a chemical works was on the land in the 1860's. That the developement of 18 houses was built on. Took 6 weeks to have soil tests etc and research the background, and come to an agreeable solution with the purchaser.

Remember also at the time my conveyancing solicitor telling me about a case of a property on the site of an old brick works.

Rare occurences but it does happen.