28 Days to buy a repo?

SpanglyBex

I've seen that there are quite a few of us on here at the moment that are in the middle of buying a repossessed property (fun isn't it?!:rotfl: ) so was wondering if any fellow repo-lovers or indeed any one else who knows could advise me how strict the vendors tend to be about the "exchange within 28 days from receipt of draft contract" clause?

Technically we should be exchanging by the end of this week in order to comply but the survey has thrown up a few odds & sods that my partner wants to try negotiating money off for - good luck to him I say but we may as well give it a go! - which will obviously slow things down. Hopefully we will manage to get at least a grand off as the surveyor valued it at this amount less than we are paying due to damp etc...

The EA knows we are looking to renegotiate after a specialist report we're having done today & didn't object to this (as I expected they would). They haven't given us any indication that the vendor is concerned about the time it's taking to exchange, other than a couple of phonecalls to check on progress (to check we're still on top of things I guess). We've been pretty good about keeping them updated, and they know we are completing on our sale on the 11th May.

Am I right in thinking there is some flexibility on the 28 days to exchange condition, then, as long as the vendor/EA is reassured we are still moving it along, or does anyone know if I'm likely to get a nasty phonecall this week saying they are pulling out/putting it back on the market? :eek:

Any advice much appreciated!

KellsBells

Hiya,

I can give you an absolute answer on this because it's what I do for living.

It depends completely on the lender which has repossessed the property. Some of them will withdraw contracts on the 28th day if you have failed to exchange but will still allow you to work towards exchange. Some lenders will allow you a little extra time to renegotiate the purchase price.

Most lenders will be reasonable about the fact that the property has been down valued and will agree to a reduction in the a/p of £1k, or offer an allowance for this amount on completion.

KellsBells

It may also be worth remembering that the longer it takes you to exchange, the more chance that the estate agent will receive another offer, as the property is still on the market and being actively marketed until exchange takes place anyway.

malko

KellsBells wrote: »

Hiya,

I can give you an absolute answer on this because it's what I do for living.

It depends completely on the lender which has repossessed the property. Some of them will withdraw contracts on the 28th day if you have failed to exchange but will still allow you to work towards exchange. Some lenders will allow you a little extra time to renegotiate the purchase price.

Most lenders will be reasonable about the fact that the property has been down valued and will agree to a reduction in the a/p of £1k, or offer an allowance for this amount on completion.

do they really do that on repos? Sounds like a total cutting of your nose move to me. I was buying a repo but the survey came back really bad. Kind of glad in way as to be honest the 28 days thing is a total joke and i detest been pushed into things by a greedy company