Considering buying a repossession...

Clarabella01

Hi! I'm new, please be kind!

I am a first time buyer and have been considering putting an offer in on a repossession.

I have looked into the "process" and undertsnd that once an offer is accepted that there is a 28 day period to completion during which i would be expected to instruct a solicitor and conduct a survey on the property.

However I understand that other people are able to put in higher offers right until the last day of the 28 day period (?!). can somebody please clarify what happens then? If the higher offer is accepted does a new 28 day period start??

In theory could people keep gazumping on the 27th day of each period therefore meaning the process goes on and on?

Understndably concerned that all could go very wrong just before completion. ( and lose a lot of money!)

Is there any way around this?

Also, in order to make an offer are you expected to have mortgage offer etc ready to go? Any particularly good fixed rate mortagges out there at the mo??

Thanks!

sonastin

You need to exchange contracts as quickly as possible. You can't be gazumped once contracts have exchanged. If you are ready to go before the 28 days is up, you don't have to wait to exchange. You are at risk right up until exchange but if your offer is good and you are nearly ready to exchange, it would have to be a much better offer to attract the vendors - bird in the hand and all that. If it is the right house for you, just go for it. Don't lose the right house because of "what if"s

kiddy_guy

Clarabella01 wrote: »

Hi! I'm new, please be kind!

I am a first time buyer and have been considering putting an offer in on a repossession.

I have looked into the "process" and undertsnd that once an offer is accepted that there is a 28 day period to completion during which i would be expected to instruct a solicitor and conduct a survey on the property.

However I understand that other people are able to put in higher offers right until the last day of the 28 day period (?!). YES - but not if you've already exchanged obviously and you can do that quicker than 28 days can somebody please clarify what happens then? The agent might have to relist the property for 7 days in the local paper advising your new offer. Alternatively they will proceed with the highest/best positioned offer. If the higher offer is accepted does a new 28 day period start?? Yes

In theory could people keep gazumping on the 27th day of each period therefore meaning the process goes on and on? Yes - happened to us 2 days before exchange (we were just awaiting local searches and everything else was done), and it ultimately cost us an extra £7k.

Understndably concerned that all could go very wrong just before completion. ( and lose a lot of money!) Yes - you run a risk.

Is there any way around this? No - but you can mitigate your risk.

Also, in order to make an offer are you expected to have mortgage offer etc ready to go? Yes - decision in principle Any particularly good fixed rate mortagges out there at the mo??

Thanks!

Hi Clarabella

Having bought a Repo myself, I've added my comments above. I'd also add that if you can get everything lined up in advance and then submit your offer, you could have the survey done the next day. Also get a very good solicitor who has experience in getting it done quickly - get friends to recommend, or I can suggest to you the ones I used. I think the major worry is that you rely on the local council/govt to provide you with answers on searches, and therefore you are reliant on sombody who won't be hurried, and you can't really chase.

I'd advise that if you really like the house, keep a few £ up your sleeve, so even if you get gazumped you can come back in with a new offer. We got gazumped at the last minute, couldn't get to the bank to get a new offer (which would have taken additional time to get signed off at their H.Office), so had to borrow it from family. We then stuck our new offer in after everything was done and got it accepted. Told the EA to ignore calls from the other party (House had been stuck in the limbo offer-counter offer-relist process for 6 months, so they wanted their money and were happy to ignore the other party so they could get their commision) and exchanged within 3 hours from submitting new offer :beer:.