House has been Repossessed 5 days before completion - ADVISE NEEDED!

MarkyMarkD

I don't understand why on earth you are trying to offer the vendor less now than you were a week ago. You still want the property and you still think it's worth £136k.

Reducing the price only makes the vendor less likely to be able to settle their two mortgages and hence the property's more likely to end up being repossessed.

If your choice is really between saving £5k and ending up homeless, this seems pretty silly to me.

james10999

MarkyMarkD wrote: »

I don't understand why on earth you are trying to offer the vendor less now than you were a week ago. You still want the property and you still think it's worth £136k.

Reducing the price only makes the vendor less likely to be able to settle their two mortgages and hence the property's more likely to end up being repossessed.

If your choice is really between saving £5k and ending up homeless, this seems pretty silly to me.

This was the advice I was given from collegues at work and also by the estate agents. The house is not worth £136k - I fell in love with it however and realised it's potential.

However if worst comes to worst I don't mind paying the 136k for the property. However my solictitors aren't getting in contact with the other solictitors and i'm really worried it won't go through for Wednesday.

brasso

If the house is not worth your offer, then you shouldn't be paying it, especially not now when the market is beginning to slow down.

Regarding being homeless, I'll avoid the temptation to say you shouldn't have handed in your notice before exchange :rolleyes: , but you need to speak to your landlord and explain the posiiton and ask to extend by a month at least. Most landlords will be happy to offer a rolling month-by-month contract.

As for your bigger question, to be honest this isn't the place I'd come to for advice. It's one for your solicitor. Let him/her deal with it.

Good

MOCB

MarkyMarkD wrote: »

I don't understand why on earth you are trying to offer the vendor less now than you were a week ago. You still want the property and you still think it's worth £136k.

Reducing the price only makes the vendor less likely to be able to settle their two mortgages and hence the property's more likely to end up being repossessed.

If your choice is really between saving £5k and ending up homeless, this seems pretty silly to me.

Once repossessed, houses are often sold at a slight discount for a quick sale. You are a generous person if you ignore that and offer the same price - different people would call you 'wise', 'generous' and 'foolish'. Who knows who is right?

Homelessness is not really an issue - he can move into a B&B, share with a friend, or rent again. Chances are his landlord hasn't already found a new tenant, so he can stay on. The danger with renting somewhere new is that you are committed for a minimum of 6 months.

£5k buys a lot of nights in a B&B!

Your solicitor needs to find out the balance outstanding on the 2 mortgages (bear in mind that it inceases every day ). The only problem that I see is if that figure is more than the price you offer (but your solicitor is the person to ask - anything I say could be wrong).

brickhouse

True, I was adamant at the time that I would not pay the extra, which was not based on the property value, but on the short fall the bank (Abbey) was trying to recoup.

BrickHouse

Yant1 wrote: »

Offer them 120K not a penny more. Like you say it needs work!

Its better to lose it then pay over teh odds for a house

[Deleted User]

yep wack your stuff at your mums and rent a cheap room with a family under no contract see gumtree website

if you over pay by 10k thats 20k when interest is on, imagine that as a big pile of cash and you standing their with a lit match.

Theres always another place if it doesnt go through be firm. I was firm with the people i bought off and i got the place for 12k less then they were asking.

MarkyMarkD

MOCB wrote: »

Once repossessed, houses are often sold at a slight discount for a quick sale. You are a generous person if you ignore that and offer the same price - different people would call you 'wise', 'generous' and 'foolish'. Who knows who is right?

Homelessness is not really an issue - he can move into a B&B, share with a friend, or rent again. Chances are his landlord hasn't already found a new tenant, so he can stay on. The danger with renting somewhere new is that you are committed for a minimum of 6 months.

£5k buys a lot of nights in a B&B!

Your solicitor needs to find out the balance outstanding on the 2 mortgages (bear in mind that it inceases every day ). The only problem that I see is if that figure is more than the price you offer (but your solicitor is the person to ask - anything I say could be wrong).

It's not clear whether it has really been possessed yet. If it's still the vendor selling, he would seem unlikely to be in a position to accept £5k less.

It was the OP who suggested homelessness - I agree with you that it's not realistically the only alternative.

james10999

Thanks everyone - I have an update!

I have phoned my solictitors are they have been in touch with the vendors solicitors to find out if the vendors have had there house repossessed yet. They still haven't confirmed if it has been repssessed yet. As the vendors have been hard to get a hold of all throughout the process, it might be good news?

I went around to the house anyway last week and saw the vendors (this was before I was informed the house may be repossessed). They said everything was going fine for the completion date and were carrying out some work for me on the property.

I really don't know what to think - shouldn't have the vendors let me know last week about this? Howcome no-one knows what's happening?! I'm still going to be transferring my money on Monday for the house - a 25k deposit and hope for the best. Surely it should be left to as last minute as this?!

travelchick

hello,
I dont have any advice about thee price but why havent you brought the exchange date forward?
Im an estate agent and i am at the moment dealing with a house in the same positon.
Firstly a bank will make sure that the offered amount will cover what is owned on the property, if it is they will set an exchange deadline on the property which you must comply with or they will repo at 5pm that day.
At the moment you are doing a same day exchange an completion if you dont have a deposit but all your conveyancing is done you could exchange on a £0 deposit with completion on the agreed date? check with your solicitor to find out whats outstanding? normally in cases like these its just equiries that are outstanding? if your formal mortgage offer is in a signed and your seraches are in equiries can be dealt with by fax.
I hope you get the house.
good luck
Trav

eatmyfish

james10999 wrote: »

This was the advice I was given from collegues at work and also by the estate agents. The house is not worth £136k - I fell in love with it however and realised it's potential.

However if worst comes to worst I don't mind paying the 136k for the property. However my solictitors aren't getting in contact with the other solictitors and i'm really worried it won't go through for Wednesday.

I am glad to see you are taking sage advice from your mates at work...