Buying a repossessed house

charlie_kemp

Hello,

Hope I find you well

My partner is currently purchasing a property which is being repossessed as the homeowner is bankrupt. I am aware that he has a trustee acting on his behalf. The initial offer was placed and accepted in August last year but completion is still not finalised. My partner's solicitors have informed him that the homeowner is being very uncooperative and failing to respond. My partner has signed his half of the deeds to but the trustee has yet to sign. It has been two weeks and still no signature. Is there something the trustee will be waiting for from the homeowner? The homeowner is still in the property as far as we are aware. Also, can the sale of the house still fall through?

Is there anything you can advise for the situation he is in?

With thanks in anticipation,

Charlie

MustStopSpending

I work in an Estate Agents, when we sell a property that has been repossed with deal with the mortgage company that has taken possession. The old owner is nto have no dealings with us at all. We have previously sold a property where the chap was going to get repossed but cos we got him a buyer it was put off. We had to keep the mortgage company updated and were on a very strict deadline to get it through. If the chap was unco-operative then the mortage lender had to know and the repossession would have been re-sheduled. Bit confused why there is such a hold up on your property.

Hope this helps a little!!

charlie_kemp

thank you for the information - we have our fingers crossed that all will go through ok

silvercar

charlie_kemp wrote: »

My partner is currently purchasing a property which is being repossessed as the homeowner is bankrupt. I am aware that he has a trustee acting on his behalf.

Just because the homeowner is bankrupt doesn't automatically mean the property is being repossessed. The Official Receiver will now have a beneficial interest in the sale in order to recoup equity on behalf of creditors.

How the sale proceeds depends on how much equity there is and this is why you are experiencing delays.

There may be attempts to buy back the beneficial interest (if there is little or no equity) hence the delay.

Buying a property that has already been repossessed and is therefore owned by the mortgage company is a lot more straightforward than buying from a bankrupt who still owns his property, at least in part.