Buying a repossessed house

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GDB2222 wrote: »

"She also said the other offer will be published but she doesn't know if any further offers will be accpepted from my daughter if she waits until then."

I think that that must be nonsense. What possible reason could they give to their borrower for not accepting an increased offer from your daughter after they have re-advertised?

That's what I'm thinking. If my daughter continues with the paperwork then goes back after the latest offer has been published with a higher offer and armed with the ability to make an immediate exchange I don't see why the seller shouldn't accept. especially if they're supposed to be bound by law to get the best price they can for the defaulter.

Quote Regina.filange:
"Also - should I ask for the notice of the higher offer in writing? As a way of putting them off making 'ghost offers' so we'll increase ours?"

I'd be interested to know that as well. Does anyone know if this works?

designergraphics

GDB2222 wrote: »

I suggest that you ring the EA and say that you're just about to cancel the valuation and the solicitor as you won't raise your offer. See what happens. If no joy, then do of course cancel them.

I'll have to wait until I talk with my daughter and her fiancee this evening before doing anything. I just spoke to my daughter on the phone and she said her fiancee wants to make a higher offer and cancel the surveyor but she wants to let the valuation go ahead and hold out on the offer. I'm inclined to advise them to let the valuation go ahead, wait a few days for the mortgage confirmation then make an increased offer of £1000 max and say it's on condition that exchange of contracts takes place immediately. Any thoughts?

GDB2222

Sorry, that comment you quoted was referring to Regina's post.

designergraphics

Ah, thanks for explaining GBD2222.

Regina.filangie

Update: EA just phoned to say they are going to sealed bids on friday so they need our best and final offer in writing before then. Why would they do this? If they've received a higher offer than ours why wouldn't they just accept that and proceed. Makes me think this other 'buyer' may be a figment of their imagination.....
We just want this house so much - but we don't want to pay over the odds for it because it needs a lot of work etc etc. Aaarrrrgghhhh :wall:

Regina.filangie

Oh, and the other bidder hasn't had to arrange a valuation survey because they haven't had an offer accepted. Whereas we have because ours was accepted, even though it's now gone to sealed bids. Luckily the survey hasn't been done yet so we've put it on hold - not paying for it if we don't need it!

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A bit of bad news today. My daughter was told the other bidder is a cash buyer. After the valuation's been done today she'll try to find out when the mortgage offer will be made. The EA told their mortgage advisor that an offer of an extra "£3000 - £5000 should do it". They've decided to offer an extra £2000 then call it a day. I'm inclined to think that the cash buyer will have only offered £1000 more than the published highest bid, especially if they really are in the strong position of being a cash buyer. The problem with my daughter & fiancee increasing their offer is that the valuation is being done on on their current offer so, unless they want to re-apply and pay for another valuation, any amount over their initial offer will have to be paid in cash or they'll be back to square one.

designergraphics

Things have moved on - and not in a good way. My daughter increased their offer by £3000 yesterday and was told that they were slightly higher than the other bidder and that their offer was accepted. She was also told that the seller had said that no more bids would be considered before next weekend provided they exchanged contracts this Friday. After feeling relief last night she was told this afternoon that a higher offer had been received and that last and final bids have to be in by midday tomorrow.

She's naturally very upset after being told it was off the market until the weekend but what makes it worse is that the bids aren't to be 'written and sealed bids', they're to be made over the phone like previous bids, so there's no guarantee that they'll be binding.

They've decided to up their bid and see what happens. They aren't going to bid what the market value of the house is or it would be defeating the object of buying a repossession, considering the general condition of the house and possible hassle involved with creditors calling etc.

I'm tempted to go down the EA's office at 11.45 tomorrow with a written bid and wait in the office until two minutes to twelve then hand the bid over, just in case they contact the other bidder offering him another chance to increase his offer. If nothing else, the nightmare should be over tomorrow - or maybe not!

designergraphics

Went down the EA at 11.45 and handed 'final' offer in. Told EA that our solicitor said final offers aren't legally binding and she said that's right but if my daughter's offers is the lowest then the seller would take her out of the running but would still accept higher offers from newcomers. I told her that this was nonsense as the seller was legally bound to accept the highest offer, whatever the source. We then went to see our solicitor and mortgage offer and everything else is in place and they're ready to exchange. The only hold up is the seller's solicitor who hasn't sent the contract. The EA is aware of this.

The funny thing is, as we were leaving the EA's office we saw someone we know waiting. Had a chat and it turns out he's the other bidder. We didn't let on that we were after the same house. What's odd is that he said he said he was placing a bid on the house but he had to sell his own. Our solicitor advised us to go back to the EA and ask if they were aware of this (having told us the other party was a cash buyer). The EA said she was aware he had a house to sell but he was a cash buyer. The EA is also acting as agent on his house.

Anyway, final offers are in so all we can do is wait for a phone call before the end of the day.

GDB2222

Have a quick chat with your solicitor. The EA has a conflict of interest if they are trying to sell to someone who has a house for sale through that EA. This should be brought to the seller's attention.