Repossession Homes

johnson293

piglet25 wrote: »

If a house is reposessed and then sold by the mortgage provider, do they sell it for the market value or for amount outstanding on the property? Am thinking a property I know of may be repo'd soon and trying to work out if it would be plausible to make an offer on it as soon as the notice hits the mat before its advertised, or are the bank obliged to sell for as much as possible and hand over the difference to the previous owner? The property in question also has a tennent in, would that affect anything financially?

I would think they could only realistically market it for the current value - not an outstanding sum on the mortgage, which could be higher than market value, and no-one would pay it.

However, lenders will try to get the best price possible for the property, hence why it stays on ther market until a buyer exchanges contracts - a potentially higher chance of being gazumped on a repo.

Jackinbox99

Not really any bargains to be had in my experience as any house will go for its market value. 2 of my friends have bought repo`s in the past, and by the time you factor in the cost of doing the house up, its the same price as one already done up would cost in the same street.

I tried to by a repo a few months back, but got outbid at the last minute by someone else... as the agents have to keep it on the market until completion. I was already offering over the asking price, but the other party felt it was worth more and therefore offered more.

With regards to debt, you may have a bit of hassle with the utilities. One of my friends had npower come out to sort the electric out and they found that the meter had been hotwired and the previous tennant had been getting free electricity for the last 4 years! Even though the debt was nothing to do with my friend they wouldnt put him on a non pre-paid meter for some time afterwards. He had a few letters through from baliffs etc, but just sent them back.