Repossesions for sale

PollyBanwell

Hello All,

I have been doing lots of research recently into buying my first property. We have a good deposit but because we're not "squeaky clean" customers the deposit will have to be 30%40% of what we borrow. That's all well and good and what I expected.

To capitalise on our maoney and to make it go as far as possible I have been looking into buying repossesions. Has anyone had any experience with this? Some are so cheap it almost seems too good to be true! Does buying a repossesion having any effect on your credit rating? I can't imagine it does but there must be a catch somewhere!!!

Any words of wisdom would be much appreciated!

Polly x :rotfl:

GMS

Time is the key to buying a repo. You need to get it done asap as there is always a risk of a cash buyer coming along during the process and buying from under you.

What is the issue with your credit rating?

CCJ's?
Defaults?
Arrears?

Credit rating cannot be affected by buying a repo.

PollyBanwell

Thanks for that - no major issues just self employed/low earners and I've missed a couple of credit card payments in the past. Haven't for ages though but my credit rating is still "poor". That's really useful advice re cash buyers. We've got 20k guarenteed and hoping to raise more for the deposit, and only need about £80k to purchase so hopefully not asking for very much mortgage with a largish deposit will mean we have a good chance of being accepted but I suppose they are so cheap in comparrisson that it's first come with the money first served.

I'm thinking of singing up to a company to receive alerts as to when new repros are on the market. It's £50 for 6 months. Sounds worth it?

Polly

Conrad

Polly - why would buying a repo be any different - it's still just a property. There will be good and bad property no mater what.

The only difference is that the lender is legally obliged to continue to offer the property for sale even when a buyer is found, because they have to be able to demonstrate to the repossessed person that they did thier best to get as much money as possible.

As your credit history is presumably meaning you need to use a sub prime mortgage scheme, be aware that those lenders will want only grade a property. They bare taking a risk by taking on people with poorer past track history, so they wont want to compound the risk further by also taking a property that is not grade a.

What do I mean by grade a?

+ Probably not ex - council unless it's a nice area with high resale demand
+ Nothing out of the ordinary such as concrete or next to pub
+ Often there are post code restrictions with some of these lenders. For example some only lend in thier own area.

As for the repo alert service I'm sceptical as lenders under the data protection act and other legislation are not supposed to make common knowledge that a property is a repo and usualy agents cannot advertise property as a repo.

Lastly be aware interest rates will be going up, so allow for this in your calcs.

PollyBanwell

Thanks for the advice. Its really useful to have a view from the other side! I feel like I'm gathering intelligence before I go into battle!

I'll bare it in mind re the type of property etc - if properties aren't allowed to be advertised as a repro how do you ever find out about them?

papermoney

I'm in the middle of buying a repo. At 1st when we booked to view it I didn't realise it was a repo (although I should have done due to the price).

Around here there are only 2 agents which take on repos, so if it is that sort of property you would like to look at, go into EAs and ask them to lt you know.

SallyD

I have put in two reasonable bids on repos, which have been held on the table for a good few months sometimes wonder if they are just "invitations to treat" to get me on their books. Last summer I put an offer in on a property that had snow in the garden on the agents website and details - still didnt get it and the property is still empty!