House has been repossessed midway through purchase

Karlos1978

Hi, new to the forum and obviously that means I have a problem I'd like some advice with
I'm a survey and a mortgage application into buying my first home. I knew the vendor was in money trouble and wanted a quick sale but having bumped into the current tennant today at the bus stop he informed me that the vendor hadn't paid the mortgage since 2009 and it was being repossessed tomorrow (Friday 13/07/12). I've not been able to get hold of the estate agent today to find out what's going on so does anybody here have any idea what will happen now? The vendor owes £85,000 on it apparently, my accepted offer was for £94,000. As I'm partway through the process will the mortgage company carry on selling to me? will they put it back on the market with a 7 day notice? will the price drop down to 85 or stay the same? Anybody able to offer any help and advice?
Thanks in advance you beautiful people

Mr.Happy

You can stop a repossession by filling out an N244 and submitting it to the courts. This will call an emergency hearing with the judge and the vendor can explain their predicament and ask for more time to sell. If the property is being repossessed today you will have a date when the bailiffs are due to be there. You will have to work quick and perhaps your current solicitor could assist?


Alternatively it is possible to unrepossess a house however you will have to pay off the arrears which have accrued. This is a slight risk however a good solicitor shoule be able to protect you.

Hope that initially helps.

DVardysShadow

While you should not dismiss the tenant entirely, you should not accept it uncritically. Is the tenant still living there?

As tenant, he will have been served notices to the occupier by the lender, which may mention this date. But your purchase may be sufficiently advanced that the repo has been overtaken.

And I am not sure about the finer points of a repo, but it would seem sensible to me for a lender to continue with a repo to the point of getting court orders and getting a tenant moved out, while still allowing a sale to continue, because this will be a sale to which their borrower was agreeable and with the tenants out, it will be the quickest way to get their money back. But don't get your hopes up too much either.

molerat

Buying a house with a sitting tenant ...... where were you intending to live ......... and how are you getting a residential mortgage without vacant possession ?