Someone i know about to have home repossessed.

Jagman83

I know someone that has just had their home emptied by bailiffs and now faces repossession next month. I buy property anyway, usually as HMO houses. I wanted to see what options there might be for me to help this person out at the same time as grabbing a bargain property. Im no expert on the financial jargon i simply know how to make money on property. My idea, also bearing in mind i wont be able to buy cash it will have to be mortgaged. Anyway the idea, property value roughly 150k i want to try and buy for 80-90k ish but then remortgage the house to its full value 90% ish and then give this person 10+ thousand cash to help them get back on their feet. I understand i may have missed some major points in this and the figures may not add up but are my thoughts on the right tracks? Any advice? Other ways to approach? Would then rent house out or turn to hmo. Thanks.

theartfullodger

Jagman83 wrote: »

...Anyway the idea, property value roughly 150k i want to try and buy for 80-90k ish but then remortgage the house to its full value 90% ish and then give this person 10+ thousand cash to help them get back on their feet......

This is a wind-up yes??


And you'll put your promise of this act of generosity in writing ?? 10+ - so is that £10,001 or £40,000...

Jagman83

Depending on figures yes i would pay minimum on 10k as she is a friend of my wife and i obviously want a bargain but also if the figures weigh up help her out too. She stands to make nothing if her house gets reppossessed and she is broke broke broke without a pot to p1ss in so to speak. 10k ish could help change that.

G_M

Who do you plan to buy from?

The current owner? For £80-90K? I assume they have a mortgage which is likely to be more than that, so how will the balance of the mortgage be paid off?

Or wait till repossession and buy from the bank? They will not 'do a deal' with you, they have to get the best price possible to minimise the current owner's ongoing debt. So they will either

* place it in an auction or
* place it with an estate agent

Either way, you can make offers to buy it in the normal way. Whether the bank will then accept 80-90K is in the hands of the gods, and other buyers, and the bank.

thelem

How much does she owe on the house? Why not include the £10k in the sale price? I can't see any downsides, and it may help to increase future valuations.

Kayalana99

Its a strange one. On one hand if the house is mortaged and he offers 90k does this not leave them in debt? (assuming they would be in neg balance) If house is repossed does this not mean debt would be wiped off? Or would they be declaring bank rupted anyway?

If either way they end up at zero, why would you not buy the house for say 20k..30k and just give them 50k in their pockets at the end of it?

richardw

Why didn't you help pay the mortgage in the short term to avoid the repo?

HappyMJ

You will need to offer enough to cover the existing mortgage or the bank will may not allow the sale to proceed. They'll send it to auction and you will be competing with many other bidders also trying to get a bargain.

Kayalana99

theartfullodger wrote: »

No: If house sold for less than what is owed plus mortgage co fees the current owner will end up with the shortfall.. And any payment of £10k of £5 should be declared...

Such a payment might well also significantly impact entitlement to any benefits (eg HB/LHA or UC {if UC ever come is...} etc etc etc

It's a fiddle, designed to defraud... not the British way of doing things...

Cheers!

In that case they would be better of being repossed if I have it right unless he pays the balance of the mortage or more.

dimbo61

Jagman83 knows how to make money from property?
But his/her english is very poor and understanding of how to buy a property which has been repossessed is ZERO!!!
Dream on

tim123456789

Jagman83 wrote: »

I know someone that has just had their home emptied by bailiffs and now faces repossession next month. I buy property anyway, usually as HMO houses. I wanted to see what options there might be for me to help this person out at the same time as grabbing a bargain property. Im no expert on the financial jargon i simply know how to make money on property. My idea, also bearing in mind i wont be able to buy cash it will have to be mortgaged. Anyway the idea, property value roughly 150k i want to try and buy for 80-90k ish but then remortgage the house to its full value 90% ish and then give this person 10+ thousand cash to help them get back on their feet.

This is mortgage fraud, and if caught you will go to prison

Do you feel lucky?!

tim