URGENT - Need advice!

G_M

The important fact here is that original property owner is getting the best price possible for his ex-home, which reduces the debt he owes to the bank.

People think that when a bank repossesses someone's home that is the end of the matter. It's not.

The bank sells the property and if the price they get is less than the outstanding mortgage (often the case especially where arrears/further interest have added up), then the ex-homeowner continues to owe the bank (as well as being homeless!)

So there is a duty on all involved (bank, estate agent, Official Receiver etc) to get the maximum price possible for the property - which is what seems to be happening here!

Esp as you have now increased your offer.....

RabbitMad

I'm still at a loss how the EA has done anything wrong - (other than to try to ensure a sale to the OP by posting the notice as late as possible)

Taadaa

We bought a repo in 2007. We went over the 28 day rule, but this was because of waiting for searches etc, so the bank were patient enough. As it happens the bank got a massive sum back compared to the price the house was bought for by the previous owners in 2001, thanks to the rising market in that time.

I can't see why the OP has concluded that the EA has a vested interest here, just because they didn't post the public notice immediately. Apart from wanting to get the best possible price on behalf of their client, of course.

silvercar

You buy a repossession in the hope that you are paying less than market value ie the fact that the sellers information may be less than complete and the lender needing a quick sale is compensated by you paying a lower price. This comes with risks ie you have to move quickly and you have a greater risk of being outbid.

There is always a risk of being outbid on any property, it is not yours until exchange. The risks may be higher with a repossession, but you know this and decide to proceed.

So it is a bit rich to claim it all unfair, you are trying to get a bargain, that is why people go for repo's. So don't sit on the moral high ground and claim to be treated unfairly when you are outbid.

Lbarn

Two points..... as we all know what assuming does;

1) The previous owner has not lived in the property for several years, we dont them, they don't know us - so not distasteful.

2) Why is everyone assuming we are getting a bargain, we have gone £11k over asking price and it needs about £15k spending on it. I can assure you it is not a bargain, the only reason we want it so badly is because we love living on the estate we live on and our landlords want their house back in a few months.

We were due to exchange on friday... then EA recommended to the seller to give it over the weekend, then someone comes forward on monday morning at 9am.... very much coincidence.

Anyway everyone has pretty much judged me for wanting to buy a house, so whats the point, i certainly won't bother asking for any further advice.

But hey thats the world we live in.... hard working decent people, who save, pay their bills, never take a penny from society get slated!:rotfl:

FBaby

I don't think it is right for you to be judge for going for repossession, as you say, it is the world you live in, and I understand your frustration having won the original bid and having reached almost the last stage finding yourself outbid.

However, I don't understand why you think there is a conflict of interest. Are you saying that you believe the AE knew the outbidder and wanted them to get the house (beyond the fact that they are expected to act on the vendor's best interest and therefore always try to get the best offer for them) and that they held putting the notice at the last minute so that outbidder could come out with their bid? Why would holding on for two weeks to put the notice makes any difference if they knew there was someone out there would was prepared to outbid? Are you suspecting that they wouldn't be able to come up with the cash within the timescale and were trying to give them more time that way? Do you have any evidence or even high suspicions this is the case, rather than a commercial tactic to give more time for any unknown bidder to come forward to the benefit of the vendor?

ticktack_2

Lbarn wrote: »

We were due to exchange on friday... then EA recommended to the seller to give it over the weekend, then someone comes forward on monday morning at 9am.... very much coincidence.

You're just not thinking clearly. That's the estate agent's job -- to get as good a price as possible. The EA is paid by the vendor, not the buyer, and it's the vendor's interests the EA is supposed to look after. This EA seems to be doing an excellent job of that. Probably he or she made telephone calls to any clients he thought might be interested in the property, hoping that you would respond by upping your offer - which you did, so he was right to make the phone calls.

The EA doesn't have any duty towards you, only to abide by the law and whatever code of practice the agency has subscribed to. The code of practice certainly won't have been breached by the agent trying to get a better price -- that's what he's meant to do.

Say the 28 days elapsed and you failed to complete -- the agent would be remiss if he didn't try to have alternative buyers lined up.

DannyboyMidlands

I agree. The EA seems to be playing these buyers like a fiddle.

RabbitMad

Lbarn wrote: »

2) Why is everyone assuming we are getting a bargain, we have gone £11k over asking price and it needs about £15k spending on it. I can assure you it is not a bargain, the only reason we want it so badly is because we love living on the estate we live on and our landlords want their house back in a few months.

The asking price might have been artificially low to attract interest. I looked at a repo once that was clearly £100K under priced - surprisingly enough the agent had well over 20 viewings the first weekend it was on the market.

If its not a bargain you won't be out bid.

Good luck with your purchase - please let us know if you eventually get it or miss out

GDB2222

Just be sure that you are not over-paying, and you really want the place. But in a world where people pay £1500 fees to buy a place, an extra £4k on the price seems like pretty small beer.

BTW, there's nothing wrong with buying a repo. Someone has to. It's just that you've been screaming that you've been badly wronged, and everybody here is pretty convinced that you have not been.