Buying a repo... continuous nightmare!

Magpie71194

Hi all, this is my first post


I'm currently trying to buy a repo house. I'll keep this first bit short.


I was the first bidder and kept increasing my bid as I have been out bided. Currently my offer is £48,000 (still waiting to see if this is accepted) but the other person has bid £46,500 and stated that is his final offer.


I have my searches complete, surveyor has been in, my deposit ready plus other fees, I need the final price agreed so I can set my mortgage in stone. The other person is a cash buyer and ready to complete at any time.


This whole process has been a continuous nightmare, is it right that they can overlook the higher offer for someone who is ready to complete just a few days quicker.


Cheers

moneyistooshorttomention

I thought the onus was on the seller in those circumstances to get the maximum price possible for the repossessed property. If that's the case - then you've bid the highest price - so I would have thought that meant they had to stick with you.

AdrianC

moneyistooshorttomention wrote: »

I thought the onus was on the seller in those circumstances to get the maximum price possible for the repossessed property. If that's the case - then you've bid the highest price - so I would have thought that meant they had to stick with you.

Not necessarily the absolute highest price - the best value. That might include taking account of the speed in which one buyer can exchange and complete.

Thrugelmir

Magpie71194 wrote: »

This whole process has been a continuous nightmare, is it right that they can overlook the higher offer for someone who is ready to complete just a few days quicker.

Lender is duty bound to look after the interests of the debtor that owes them money, and obtain the maximum possible recovery.

Pricivius

I bought a repo a couple of years ago and I had to bid £5k over a cash buyer to make it worthwhile the mortgage company waiting for me to secure the mortgage. Even then, the estate agent was not convinced I would get it, but the mortgage company went with my offer.

MrJB

I presume it's an LPA sale? The receiver's duty is to the borrower, but in acting in their best interests time has a monetary value, every day they are in default is increasing the money due. You have no formal mortgage offer, thus there added time has a monetary value. In addition, the certainty of doing a deal with a cash purchaser has a monetary value. It's not really as clear cut as you offering marginally more, because an offer for you is obviously more risky!

Marvel1

AdrianC wrote: »

Not necessarily the absolute highest price - the best value. That might include taking account of the speed in which one buyer can exchange and complete.

Also the lender may not like something about the property and refuse to lend.

Magpie71194

I have originally had an offer of £42,000 accepted by my mortgage provider, it did flag on my valuation £1,000 retention for rising damp but I have that money ready with my deposit so it is not an issue. I need a final figure so I can get the mortgage finalised. Once it is finalised there is no other issues and I can exchange as soon as solicitor can process it.


In my view it will take me a week to exchange if they take my highest offer.
Also, £48,000 won't be my final offer.

Magpie71194

cjdavies wrote: »

Also the lender may not like something about the property and refuse to lend.

Surveyor has been in. Withholding £1,000 until I sort rising damp. I am still allowed to continue and once deal complete and I have done the work I need to send a copy of invoice to say work has been complete and they will release the £1,000 to my solicitor. No other issues.

Magpie71194

Hi all


Another question, I don't know if this needs to be on another one. EA have accepted my offer (£48,000) but all of a sudden this other party have "disappeared" as something has cropped up and the bank no longer wish to deal with him.


All this has done is increase my value by £8,000


I have no idea if these other offers are even real. Is there anything I can do about any of this?

doughlove

It depends on the seller/mortgage company..some don't and some do. From the few that I've seen be it a foreclosure/deceased estate sale/corporate sale, they tend to put a notice on the listing (assuming the property is available on Rightmove) to maximise sale eg:

Estate Agent Name are now in receipt of an offer for the sum of £123,456 for 123 Street Name, City Postcode. Anyone wishing to place on offer on this property should contact Estate Agent Name before exchange of contracts or in some cases with closing date at 12pm.

So keep an eye on the listing on rightmove or whereever you've seen advertised. The ones that I've put an offer in were real although the EA will try to make you go higher or say things like" I think if you bid for £999, the vendor will let you have it". At the end of the day, bid how much you're comfortable with as you can always go higher bit by bit.

Was there any criteria on the listing? Some of the ones I've seen have certain conditions, eg cash buyers only.