What next? Repossession Purchase (1st time buyer)

milek

Hello, This post is kind of following on from my previous thread.
I am a first time buyer looking at purchasing a repossessed property with a mortgage.

We have submitted an offer which was rejected (not much lower than the asking price), the asking price seems very reasonable and that is what the asset management company say they are after at the moment. Another person has submitted an offer lower than mine and other people are in line for viewing. I like the property and considering meeting the asking price.

I am wondering, what exactly happens next after an offer is accepted on a repossession?(A simple ordered list would probably suit best, i know roughly but not in what order, how long it takes, just want to be prepared)

I have a sizeable deposit and have got an AIP through a broker.
I have not got a solicitor in place or surveyor yet (probably looking at getting a homebuyer report).
Any tips would be appreciated as well :beer:

Any help would be great.
Thanks

MonsieurFrugal

I bought one and basically once your offer is accepted (the asking price normally) the property will remain on the market until you exchange contracts. Your offer will appear in local newspapers inviting other / higher offers.

When your offer is accepted get your solicitor on the ball pronto and apply for your mortgage quickly!

From offer to exchange took 24 days for me which was very quick but I did have to nag people everyday (solicitor, EA, bank etc)

Good luck

G_M

Once an offer is accepted, the buyer should proceed to Exchange of Contracts ASAP.

Because the asset management company has a duty to maximise the price, so will continue to consider any new offers. Indeed, they usually advertise the agreed price publicly and invite higher offers.

If an offer marginally higher is received they may decide to ignore it, rather than delay the sale, but if it is high enough, they will cease selling to the original buyer and accept the new offer, even if this delays the sale.

noisla

I am learning as I go, and it seems to be a balancing act between moving quickly enough not to lose the place, while trying not to commit funds on stuff until you're sure you need to. Google for more advice on each point, but roughly:

1) Put in your offer on condition that it is taken off the market, viewings are stopped/cancelled, and any other conditions.
2) Get written confirmation of the offer being accepted
3) Make your mortgage application - which will usually including a non-refundable application fee, but stick the actual mortgage/product fee on to the end of the mortgage.
4) Get a solicitor involved - once you have the full written particular of the sale (names and addresses of vendors, etc - estate agent completes this) they begin by requesting the Property Information Form from the vendors, then they follow-up with further queries (some of which may arise from the surveyor's report).
5) Tell the solicitor to do the searches - this will incur non-refundable charges and is a separate part of their work, so consider delaying till after the survey.
6) Get your survey booked in - seriously consider a full building survey, and get an independent surveyor, not the same one as will do the mortgage valuation, otherwise the mortgage company might pick at the report findings.
7) Depending on the report, consider further inspections, google to death the findings in the report and do speak to the surveyor by phone to understand everything and get the opinions (s)he won't commit to paper.

And that's where I've got to. I guess you might be under pressure to move quickly when it's a repossession place, there might be little/no info forthcoming from the vendors... good luck

PaulLuke

If you really want it push ahead as fast as you can, particularly if you think you've got a good price. We've just purchased a repossession and the property management company started to get a littly itchy as we took around 38 days.

Albei, caused by delays in the agent confirming the offer had been accepted and then further delays with the survey as the company in question were getting rather busy and shortly after our servey were quoting 6 - 8 weeks to get a survey booked in!

You won't get much on fixtures and fittings and basically buy it as seen.

G_M

noisla wrote: »

I am learning as I go, and it seems to be a balancing act between moving quickly enough not to lose the place, while trying not to commit funds on stuff until you're sure you need to. Google for more advice on each point, but roughly:

1) Put in your offer on condition that it is taken off the market, viewings are stopped/cancelled, and any other conditions.
It's a repo- this will not happen.
.....................................

Only other advice might be to try to negotiate a 'no sale no fee' agreement with a conveyancer. Hard, but possible.