Buying a Repo

pixiepeep

Hello all,

We're in the minefield of attempting to buy a repossession property. Before you say it, yes, I know, we must be mad.

Besides the stress of our buyer demanding we're out for a date next week despite him having not signed any contracts yet, we're struggling with the stress of being constantly outbid by tiny amounts, and are now very close to our limit.

Question is - our searches should be done by the end of this week, our survery was done today and our mortgage is approved - can we request to go to contract?

I know we can be gazumped at any moment until we've exchanged, but how do we go about getting to that point?

Many thanks for your help.

marksoton

What does your legal representation say?

pixiepeep

marksoton wrote: »

What does your legal representation say?

They're more concerned about getting the searches sorted first, and have requested the company selling on behalf of the bank take the property off the market, but beyond that haven't really said much.

marksoton

pixiepeep wrote: »

They're more concerned about getting the searches sorted first, and have requested the company selling on behalf of the bank take the property off the market, but beyond that haven't really said much.

Well you need that contract checking before signing.

pixiepeep

marksoton wrote: »

Well you need that contract checking before signing.

We haven't seen a contract yet - that's what I'm saying, can we just request that we get to contracts, or are we at the mercy of Move With Us?

Mossfarr

The agents can not 'take it off the market' until the point of exchange. This is because the sellers have a legal obligation to get the highest price for the property - to settle the outstanding mortgage and repay anything left over to the former owners. They actually have to publish your offer and invite higher bids.
It is usually a condition that the purchase will be completed within 28 days.

I have purchased two repossessed properties and it is nerve wracking - but definitely worth it.

G_M

From what you say, you do not yet seem to have agreed a price. So how can you 'go to contract'?

Thrugelmir

pixiepeep wrote: »

We haven't seen a contract yet - that's what I'm saying, can we just request that we get to contracts, or are we at the mercy of Move With Us?

Your conveyancer has responsibilities to the mortgage lender. That's part of their remit. There'll be no exchange until the lenders requirements are met.

pixiepeep

G_M wrote: »

From what you say, you do not yet seem to have agreed a price. So how can you 'go to contract'?

We had an offer accepted, which was advertised as per requirement. There was then a counter offer 3 days later, which we matched. This other potential buyer dropped out, but now there has been another offer, which we have matched again.

I'm not sure how we are to agree a price if they'll just keep accepting the higher offer? At what point will they agree to sign contracts if they're eternally waiting for a higher offer?

And surely, if they accepted our original offer then they must have found it sufficient enough to pay off any outstanding monies to the bank?

pixiepeep

Mossfarr wrote: »

The agents can not 'take it off the market' until the point of exchange. This is because the sellers have a legal obligation to get the highest price for the property - to settle the outstanding mortgage and repay anything left over to the former owners. They actually have to publish your offer and invite higher bids.
It is usually a condition that the purchase will be completed within 28 days.

I have purchased two repossessed properties and it is nerve wracking - but definitely worth it.

28 days was agreed when they accepted our first offer. What I don't understand is at what point they stop accepting higher offers?! If they didn't consider our initial offer sufficient, why did they accept it in the first place?

The offer was published by the agents we would be buying through, and is still listed on Rightmove.

eddddy

pixiepeep wrote: »

28 days was agreed when they accepted our first offer. What I don't understand is at what point they stop accepting higher offers?! If they didn't consider our initial offer sufficient, why did they accept it in the first place?

The offer was published by the agents we would be buying through, and is still listed on Rightmove.

By law, the bank is required to achieve the best price reasonably possible - so they must accept any higher offers until exchange of contracts happens.


So they did think your first offer was acceptable, and they would sell it for that price - unless they get a higher offer before exchange of contracts.