bank repossesion wants CASH ONLY ! WHY ?

shaf

Hi Folks

Apologies in advance if its been answered already.

Seen a nice house, got it reduced from 220 to 175k, but my mortgage advisor has been told its "Cash only" ?? I really liked the place, but obviously dont have 175k in cash lying around !

I know its been repossessed from a dodgy builder who has since fled the country !

Should I try and pursue why they want cash only ! and more importantly how to sway them to take on my mortgage offer. I am aware that the previous owner chopped the house in 2 to make 2 semi detached properties without seeking proper planning permission. Now according to the council, thats since been approved, but the building regs havent. Should I try and suggest to the vendor (the bank in this case) that I will pay for any work to get the building regs approved etc etc ? or should I bail as its potentially a legal landmine ??

Any help would be much appreciated. Thanks again folks and take care..

Mallotum_X

Its probably cash only as they know its not mortgagable - possibly to do with regs and planning permission.

It may well turn out to be full of problems, but without investigating further thats only speculation.

shaf

Thanks Mallotum

Yes your right it may well be a structural issue, I might try and find out from the vendor if it has known major structural problems or anything else which may impact my mortgage tied offer. Seems tough to walk away from as with some TLC is would be a profitable long term investment ! and a bloomin nice home :]

I'll pursue it tomorrow and try and get some more information is suppose.

Thanks again dude

PasturesNew

Cash only means the house is unmortgageable. It'd be cash only even if it weren't a repo.

There was one round my way .... they'd taken out just about every supporting wall inside and built into the roof. Council had gone in, put props in to keep it standing until it was sold at auction. Children weren't allowed to be present during viewings as it was so unsafe and the wording on the website said that the props holding it up would be removed on completion day as they were only on loan.

So maybe your man did some really daft stuff. Even completely removing the kitchen, so there's no sink, would make it unmortgageable. Or maybe there's a big subsidence issue that can't be see by driving by.

But the "cash only" reflects the state of the house, not it's sales method.

Werdnal

It might be worth asking why its unmortgageable - just out of interest if nothing else. But once it has been quoted as a "Cash only" deal, its unlikely you'd be able to convince them to lend on it, so its probably a no-go for you anyway.

Flashmanchop

Ultimately, bank, and lenders often look at these deals (especially quirky ones) that have attached risks as, well, a RISK.

Hence, they won’t lend on it, as it may not be re saleable if you defaulted. Anyone who has bought commercially recently would have heard about the 90 day valuation rule – called so, in case you de faulted and they had to sell, within the 90 days.

ALL Mortgage lenders will not lend on somewhere ultimately they cannot sell on, so bathrooms and kitchens are always a must.

IF you can buy cash, add these necessities you can make a LOT of money.

They want people with Cash, who can complete quickly, and so the risk is their cash, and not mortgaged cash.

It does sound like somewhere with potential, and potential to make money.

My rule of thumb is, the more different a place is, the more headaches you will have trying to buy it.