just about to exchange contracts then haybrooks say higher someone has put bid in

monkeymoomoo999

Hi

I hope someone can helps my friend. He put in an offfer on a house 2 months ago it was excepted. There is no chain as the house was owned by the bank as someone did a runner. ( not paying the mortage).
Anyway he was just about to exchange contracts then Haybrooks have just phoned him to say someone has put a higher offer in and they have excepted it.
Is it me or is this strange? them playing games so he buts a higher bid in?

I just find it so odd

Thanks in advance

Jenniefour

So this is a repossession, isn't it. Unfortunately, not odd at all. I believe that the banks will take the highest offer and that one of the risks of trying to buy repo's is that you might lose it to a buyer coming in later on with a higher offer right up to exchange. Your friend needs to consider whether he wants/is able to increase his offer.

HAMISH_MCTAVISH

If it's a bank owned property it's not so strange. Your friends offer may have been low, and the bank/EA are obliged by law to continue marketing until the point of completion to get the highest price possible. If they can't show they've done so, they can be held liable if they try to pursue any shortfall from the previous mortgagee.

monkeymoomoo999

HAMISH_MCTAVISH wrote: »

If it's a bank owned property it's not so strange. Your friends offer may have been low, and the bank/EA are obliged by law to continue marketing until the point of completion to get the highest price possible. If they can't show they've done so, they can be held liable if they try to pursue any shortfall from the previous mortgagee.

Thank you both of you. The sad think is its only £2,000 more than what he put in.

could the estate agent be playing games so he bids higher?

monkeymoomoo999

monkeymoomoo999 wrote: »

Thank you both of you. The sad think is its only £2,000 more than what he put in.

could the estate agent be playing games so he bids higher?


2,000 is nothing to the banks.

JQ.

monkeymoomoo999 wrote: »

2,000 is nothing to the banks.

It's not the banks money. Any shortfall will be recovered from the borrower who had their house repossessed. That's £2,000 less they owe the bank, so I suspect they'll be very grateful indeed and I would imagine it's alot of money to them.

monkeymoomoo999

JQ. wrote: »

It's not the banks money. Any shortfall will be recovered from the borrower who had their house repossessed. That's £2,000 less they owe the bank, so I suspect they'll be very grateful indeed and I would imagine it's alot of money to them.

I see.

But when you buy a house and you are looking around can estate agents refuse to tell you what kind of person owns the house eg, if it been reprosest or not?

_s79

Seems strange that they would accept a bid of just 2K more if it's about to exchange. I would have thought that the bank would have accepted the lower offer given that it is further along / nearly complete. Saying that, why has it taken 2 months, don't repo's aims for within 28 days?

JQ.

It makes no difference to them, they are not emotionally attached to the sale - they just need to get the highest possible price, which it looks like they have. You never know, your mate may offer another £2,000, in which case they've achieved an extra £4,000.

If my house had been repossessed, these are exactly the actions I would want my bank to be taking.

monkeymoomoo999

_s79 wrote: »

Seems strange that they would accept a bid of just 2K more if it's about to exchange. I would have thought that the bank would have accepted the lower offer given that it is further along / nearly complete. Saying that, why has it taken 2 months, don't repo's aims for within 28 days?

yes I thought the same

JQ.

monkeymoomoo999 wrote: »

I see.

But when you buy a house and you are looking around can estate agents refuse to tell you what kind of person owns the house eg, if it been reprosest or not?

I thought you had to be told it was a repossession, but I don't know for sure. In fact, is it not normally clearly stated in the advert?