The ethics behind repossession

Pricivius

I bought a repo duplex flat in London in 2012. There was a hole in the kitchen ceiling from a leak in the bathroom above, the kitchen needed replacing and the whole flat needed re-carpeting and painting. I also had to get services re-connected - so electrician and plumber to check I was okay to switch everything back on (no gas). I had to spend quite a bit to bring it back to life.

I took quite a hard-nosed attitude throughout the buying process - someone's going to buy it so it might as well be me. My offer was £5k higher than the previous offer on the public notice so the building society had to go with me. Whilst I was technically gazumping, on the other hand, it was £5k more off the family's debt.

I felt slightly different after completion when we began clearing out the property for refurb. I found prescription medication for depression behind the fridge and a toddler's spiderman pants in a cupboard. I also received a magazine for NHS workers through the post. Whilst they were a random family who could not pay their mortgage and had to leave, it was fine, but once I started to get a picture of who they were, I felt more compassionate towards them.

As said above, it could happen to any of us.

AdrianC

newbie_emma wrote: »

The house is worth approx 45k more than we're buying it for, and than it was advertised for. Original ad was for £170k, then it was gutted and left in such awful condition, we're paying under £125 for it but we will have to spend at least £15k to get it half decent again after the damage etc that's been done. I can't offer anymore for it because it's not worth it until the works been done... The shortfall is gonna have to be their problem to solve, I'm afraid!

Indeed. The idiots who used to live there have cut their noses off to spite their faces.

Because of their vindictiveness, they've done a lot of damage that is now coming out of their pockets. If they hadn't done that of damage, and the house had sold for £15k more, then they'd now owe £15k less. Unless they're going bankrupt, they are not going to escape that debt - it will only continue to increase.

Oh, well. Their problem. Nobody else's...

newbie_emma

AdrianC wrote: »

Indeed. The idiots who used to live there have cut their noses off to spite their faces.

Because of their vindictiveness, they've done a lot of damage that is now coming out of their pockets. If they hadn't done that of damage, and the house had sold for £15k more, then they'd now owe £15k less. Unless they're going bankrupt, they are not going to escape that debt - it will only continue to increase.

Oh, well. Their problem. Nobody else's...

I actually never thought of it like that, but spot on! The house is no doubt worth more in a good condition. Even the porcelain has suffered, cracked/smashed etc.

lincroft1710

My thoughts exactly, Adrian.

Bonniepurple

We bought a repo. It was in a dire state, but it's become home. The man was violent towards his wife. They had 1 child, and I found the wrapper from a Clearblue in the handbasin. Do I feel sorry for them? No. They had a LOT of debt (we still get letters 9 years later) and didn't pay any of it - but they apparently had a massive dog and a large flat screen TV - in 2005!

Sometimes life throws a curveball and then it's sad, but other times people take out loans and mortgages knowing that they can't afford them whatever - and then I just wonder what they are doing now.

Innys1

mustang121 wrote: »

A little harsh. Your friend might have been a idiot, but sometimes life throws a unexpected twist. Repossession could potentially happen to any one no matter how careful and well organised you are.

onlyroz wrote: »

A friend of ours was reposessed because he was an idiot. He lied about his income to get a mortgage, lived a more lavish lifestyle than he had the funds to pay for, and as a result lost his flat. At the end of the process he ended up with about £10k in equity which he has subsequently frittered away on cr*p.

I would not in any way feel sorry for the former owners of your new property.

Lying about one's income and living beyond ones means is not being thrown "an unexpected twist".

ScorpiondeRooftrouser

You have paid more for that house that anybody else was prepared to. It's not been a secret stitch up. It was advertised and sold on the open market, presumably, and nobody thought it was worth paying more for it than you offered. Why on earth should you be concerned about anything?

Cheeky_Monkey

newbie_emma wrote: »

well I've not a clue on house values etc, just going off the most recent ad prices for it and the value of the surrounding houses. I suppose you're right though, the same can be said for anything that you buy, cars etc only ever worth what someone will pay. I'm reasonably confident that if we did some work to it we could increase the value, but that's not really my aim, I just want a nice family home and no intention of selling it any sooner than in 10 years time

It's unlikely they had been trashed though so obviously sold for more

Dird

How do you know if a house is a repo or not? Was it bought at auction?

AdrianC

Dird wrote: »

How do you know if a house is a repo or not?

Because it's being sold by the lender, who has vacant possession of the property, whose sole aim is to get the maximum possible price, and will continue to actively markete it right up until the very last second before exchange of contract.