Buying a Repossessed house

99markus

Sorry if this has been done many times before I just want to be clear.
I've put a bid in on a repossessed house a long with a few others who are also bidding quite close to mine. The house was £75000 o.i.r.o and I matched a bid of £76000 for it everyone else had to have a mortgage the estate agent said but mines full cash. everyone else was told they couldn't know what people's final bids were on the last day and just asked there final bids and they go to the solicitor and then he chooses.
If they out bid me buy £500 or a £1000 whatever would the solicitor go for my full cash bid or just go with the highest?

Thank you

FutureGirl

Only the solicitor making the decision can know that answer.

G_M

Solicitors don't make decisions. The seller decides. If it's a repo, it's (probobly) a bank.

They might go for highest bid; they might go for fastest to Exchange.

Most likely they'll do both: ie go with you cos you're cash so faster, but open it up to further bids. If they then get another bid sufficiently above yours, they switch buyer or ask you to offer more.....

It's a repo: they have a legal duty to the defaulting 'owner' to get the best price.

eddddy

If it's a repossessed house, they will go with the highest bid (they are legally required to). And the bank typically require exchange within 28 days.

But also, if it's a repossession, they must publicise the winning offer and invite higher offers.

So you can come in later with a higher offer if you want.

It would probably annoy the EA and the other buyer, and you might get into a bidding war.. but it's an option.

99markus

Thanks guy for the help they didn't really say what the situation was in regards of who would win last thing I heard the offers were matched but I didn't know if the matched person had chance to increase there bid

Davesnave

99markus wrote: »

last thing I heard the offers were matched but I didn't know if the matched person had chance to increase there bid

I think it likely those 'matched' will be asked to re-submit.

99markus

Ok cheers I didn't know if they go with my cash offer because of how quick it would be and no chance of falling though

Davesnave

Until exchange, they will typically go with whoever offers most, provided the purchaser can prove they're in a purchasing position, wherever the funds will come from.

This is because they are charged with reducing the debt of the defaulter to the miniumum.

Mossfarr

I have purchased two repossessed properties, the first one had matched offers. I was told details of all the bidders would be submitted to the vendor who would then choose who to sell to. I was chosen as I was in the strongest position - I had a large deposit, mortgage ready and waiting and was able to complete within the required 28 days.
The estate agent was still required to publish details of my offer and invite higher offers - no way out of this but it was a nail-biting time!
(the agent did tell me not to worry as it was unlikely that the vendor would consider others as I was in such a strong position).
It all went through without a hitch, I would do it again in a flash!

As a cash buyer you are the strongest candidate - your only risk is if someone puts in a higher cash offer - but you can still increase your offer if you want to.
mossfarr

99markus

Oh right okay, the estate agents told me I'm the only full cash buyer which is good and I find out tomorrow who's won, I would go higher but I don't believe getting into a bidding wars going to be good because the house needs quite abut of work which im trained in most building areas

G_M

99markus wrote: »

Oh right okay, the estate agents told me I'm the only full cash buyer which is good and I find out tomorrow who's won,

No.

You'll only know who's won once you have actually Exchanged contracts.

Tomorrow you'll find out who they will proceed towards Exchange with, but they will still take regard of any new offers they receive.......