Buying a repossessed house

cattie

No, I'd give them a call as there is always a chance another offer has been accepted & not all ea's will bother to phone unsuccessful buyers to tell them.

If this is the case, better you're put out of your misery asap, but if the news is good or more favorable, then you won't be worrying so much about whether you are likely to be lucky with your offer or not.

Good luck anyway.

green_dragon_3

how did you find out about this repo ive been asking people about them but no one wants to tell me.if ou could pm me i would be greatful
cheers

sealady

Are there any real do's and don'ts about purchasing a repo house. We've seen a really nice one that needs a little work and would like to offer about 10 grand under the asking price.

Jorgan_2

green_dragon wrote: »

how did you find out about this repo ive been asking people about them but no one wants to tell me.if ou could pm me i would be greatful
cheers

The majority of repo's are sold via estate agents, you don't get a list of properties in an area of properties that have repossessed. Its only with the advent of HIPs that many agents have found out who the lender actually is as many lenders sell via management companies. You generally won't get any bargains via this method of sale, many people are under the impression that the lender will take a really low offer, this is not the case. If a repo doesn't sell via the agent it will probably go to auction, which may be held hundreds of miles away.


There aren't any real do's or don'ts of buying a repo. Make sure you and any chain you have is advanced as possible when putting the offer in. I've known offers rejected because the buyer's buyer didn't have their mortgage offer. As has already been said on this thread, you will usually have to exchange in 28 days, although some lenders are stipulating 21 days at the moment.

sealady

Jorgan wrote: »

The majority of repo's are sold via estate agents, you don't get a list of properties in an area of properties that have repossessed. Its only with the advent of HIPs that many agents have found out who the lender actually is as many lenders sell via management companies. You generally won't get any bargains via this method of sale, many people are under the impression that the lender will take a really low offer, this is not the case. If a repo doesn't sell via the agent it will probably go to auction, which may be held hundreds of miles away.


There aren't any real do's or don'ts of buying a repo. Make sure you and any chain you have is advanced as possible when putting the offer in. I've known offers rejected because the buyer's buyer didn't have their mortgage offer. As has already been said on this thread, you will usually have to exchange in 28 days, although some lenders are stipulating 21 days at the moment.

Thanks for that info, we are lucky as we have the finance in place and are FTB so it should be rather simple, I hope

Jorgan_2

sealady wrote: »

Thanks for that info, we are lucky as we have the finance in place and are FTB so it should be rather simple, I hope

Make sure you ask your solicitor whether thay feel they can meet the timescales imposed, not all are geared up to do it.

Andy_Hamilton

I put an offer in on a repo house for £5K under market value. The offer was accepted then it had to be advertised for 7 days.
The estate agent phone me to tell me there was 2 other couples interested so I offered Market value.
I got a phone call on the 7th day to say I needed to put the offer in writing and give it to them for the following Monday, this was the Thursday. I asked what other information they would require in the letter as I was away for that weekend and returning on Sunday. "nothing else" was the reply.

When I arrived back at 7pm on the Sunday the letter indicated that they wanted £15K over market value to secure the house but I also must be able to give the name of my solicitor, bank details and maximum mortgage offer.

The letter I wrote to the EA was blunt. I told them what I thought of there process and I was not able to give the information required on a sunday night but the offer of market value still stood.
I never got the house but I did speak to the people who did. There were told I put the offer in for £10K extra so they spent £15K over the odds, all that was over the phone so no proof.

Never trust estate agents when it comes to these properties as they will airm to get as much commision as possible and they don't have to let the vendor know.

Jorgan_2

Andy_Hamilton wrote: »

When I arrived back at 7pm on the Sunday the letter indicated that they wanted £15K over market value to secure the house but I also must be able to give the name of my solicitor, bank details and maximum mortgage offer.

The letter I wrote to the EA was blunt. I told them what I thought of there process and I was not able to give the information required on a sunday night but the offer of market value still stood.
I never got the house but I did speak to the people who did. There were told I put the offer in for £10K extra so they spent £15K over the odds, all that was over the phone so no proof.

Never trust estate agents when it comes to these properties as they will airm to get as much commision as possible and they don't have to let the vendor know.

The process used was laid out by the management company or lender handling the sale of the repo. Its quite a common system that many management companies/lenders use.

All offers have to be passed to vendors, be they repo's or private sales.

markvirgo

I have found a repo house and have 28 days to complete but have not even put my house on the market yet. will it be possible to get the money from the bank to buy the new house and put my house on the market. I have been offered £150000 to buy another house if I rent mine a couple of months ago the repo is on at £210000 my house is worth £214000 by the banks valuation.

Also is there anyway to extend the 28 days?.

Premier_2

markvirgo wrote: »

I have found a repo house and have 28 days to complete but have not even put my house on the market yet. will it be possible to get the money from the bank to buy the new house and put my house on the market. I have been offered £150000 to buy another house if I rent mine a couple of months ago the repo is on at £210000 my house is worth £214000 by the banks valuation.

Also is there anyway to extend the 28 days?.

Have you explained this to the EA? I'm surprised the seller is even considering your offer based on current circumstances...perhaps its a sign of the times.
The problem is if you don't get contracts exchanged asap (and based on what you say it seems you need to have a buyer for your place to be able to do that), if someone comes along in a position to proceed and offers the same, or even a little less than you've offered the seller will get you into a contract race.

The seller may even kick you to touch entirely if you don't seem to be proceeding as quick as they would expect.

Remember every day the house remains unsold is costing the person who's had it repossessed money - the seller has to act in a way that mitigates losses for the original owner.