Buying a repossessed house

clearkav

RE "i was keen to sort another mortgage but then didn't want to end up getting out bid on it and possibly ending up with mortgage fees to pay"

I spoke to my FA yesterday, he advised that I put the mortgage fees on to my mortgage rather than paying cash upfront - that way I avoid fees if I don't complete. So, maybe push your FA - might save time at the end of the process, meaning if someone does outbids you at the end, they won't be able to complete as fast as you can which might be a larger consideration for the bank.

Bronnie

JayUK76 wrote: »

Thanks for your feedback and help. We are trying not to be that interested but at the same time are worried about someone else coming in with a good offer and we're not told. However i guess thats the way it is :rolleyes:

Our offer is quite low but its what we can afford and no other offers have been given yet, so touch wood. I wonder if they will come back to us and say what they're willing to accept? The EA seems very much on the bank's side rather than trying to assist us but we'll have to wait and see i guess.

Thanks again for your advice.

The EA is instructed and paid by the seller, Jay, that's why they appear on their side. If they appeared to be on your side, don't trust them either!!!!!!

myhooose

I've put a cash offer in on a repossession and have been told if it is accepted we only have 14 days to complete. Is this normal , I was expecting 28 days?

AMD1981

Its normally 28 days to exchange.

princessamy86

They sometimes shorten the length of time for a cash offer, as there is no need to wait for mortgage offers etc.

johnson293

I'm also in the same boat have had an offer accepted on a repossessed property this week, but have been told 21 days to exchange contracts, and we are 'next time buyers' buying with a mortgage.

However, my mortgage adviser told me that this is standard practice, and is often used to encourage potential buyers to get things sorted quickly - there can often be flexibility on the deadline, whether is 21 or 28 days.

We were also made aware of the local press listing looking for higher offers, so I am slightly nervous of someone offering higher as we can't afford to go any higher than our offer.

However, we have been advised that while the vendor has to get the highest price for this type of property (due to creditors, etc) they would be reluctant to accept a small offer above ours, if it looks like everything is proceeding quickly - it would have to be a significant increase for them to accept.

But my mortgage deal has a free valuation/survey, so hopefully I won't have paid anything/much out pre-contract exchange anyway to lose.

We have also been told that the estate agent will discourage any viewings/offers, but obviously anyone who is adamant to view can't be stopped.

Anyway, heres hoping everything goes through ok!!

Bronnie

We did find the vendor's solicitors fairly uncooperative when we bought a repo.

Our solicitor sent a few quite reasonable enquiries in and the gist of their response was that they weren't prepared to deal with those particular enquiries; if you wanted the house you take it and that was it!

On balance, we decided to go ahead and everything was ok, but just to forewarn their attitude can be intransigent.

TheMoneyMan

Goleo wrote: »

I hadn't heard from the EA's so i phoned them. They said the company who own the house are just waiting to see who offers the most. Apparently someone has offered more than asking price (why would they do that?). I could offer more as the asking price is below my limit, however, i don't entirely trust EA's.

Do you think they are playing a sneaky game? It's happened to me before (they said the house had been taken off the market and they not doing more viewings, then a mysterious buyer turned up and offered 2k more than me).

Sounds familiar! I was supposed to exchange contracts today on a repossesion I had offered the full asking price for! I heard nothing from the solicitors or EA until 4:30pm so I rang them and all of a sudden they said they've had a higher offer! They wouldn't tell me how much even though other people knew how much I had offered as it was printed in the local paper!!!

Did I make a mistake and offer the full asking price in the first place. Do they usually play games like this?

karenthemummy79

Yes this does sound like a regular pattern with repos!!!! I was supposed to exchange a couple of weeks ago but the asset management company were delaying things.

I was really pushing for Friday to exchange but late Friday I got a phone call.............. another offer had been placed through the 2nd agents!!!!!

I went into the EA on Sat and they assured me it was a legitimate bid and that the Asset Management company had decided to go to final bids by 12pm yesterday!!!

12pm came and went - we decided not to increase our offer as we are only 2500 under asking and are ready to exchange on the day! The other offer is more than likely only 2500 more!

We are still none the wiser!! Hoping to find out today but if they mess us around again - I think I am tempted to set them a deadline and say that if they dont get back to us with a decision by 2pm today that we are withdrawing our offer!!

Sounds to me like it is TOO much of a coincidence that everyone seems to be asked to increase their offer at the last minute!!!

TheMoneyMan

karenthemummy79 wrote: »

12pm came and went - we decided not to increase our offer as we are only 2500 under asking and are ready to exchange on the day! The other offer is more than likely only 2500 more!

We are still none the wiser!! Hoping to find out today but if they mess us around again - I think I am tempted to set them a deadline and say that if they dont get back to us with a decision by 2pm today that we are withdrawing our offer!!

Sounds to me like it is TOO much of a coincidence that everyone seems to be asked to increase their offer at the last minute!!!

That's a good idea. I've now told them that I am not going above the asking price and I have cash ready to buy it. If they're interested then they need to exchange by 5pm today as we were supposed to exchange yesterday.

Too much of a coincidence

Best of Luck. Let me know how you get on.