Buying a reposession

joeyjac

Hi,

Its the first time I've posted on this board so please be gentle with me.;)

I've been umming and ahhing over a property for a few weeks and today i noticed thet there was a notice in the paper re an offer received.

Notice states

By order of the mortgagee in posession, we would advise you that an offer has been made for the above property in the sum of £112000.
Any person wishing to increase on this offer should notify the agent of their best offer during the course of the next 7 days.

What i am unsure of is how this works? I'm wanting to put a higher offer in, would it be sealed bids? I can go quite a bit higher but obviously don't want to go any higher than necessary. (house needs quite a bit of work)

I've never dealt with anything like this before so have no idea how it all works.

I'm going to ring the agent first thing tomorrow but just wanted to get some advice first.

Thanks in advance

Jo

Doozergirl

It wouldn't necessarily be sealed bids. Even if it were, you can still up your offer straight after as the mortgage company is obliged to consider all offers.

Make sure that you are financially ready to go - whether that be a mortgage agreement or proof or available funds. They will ask for it if your offer is considered.

joeyjac

That helps, thanks.

I was just worried that i would put an offer in and then have no chance to increase it if someone else put one in higher.

I presume that it would then progress as any other house sale? i.e if the survey came back that the house was falling down:rolleyes: i could pull out if needed?

dolce_vita

As far as the creditors are concerned £113,000 is a higher offer and would secure you the house/flat.

Unforunately, you are probably not the only person who has seen the advert so you are effectively in a bidding war.

decide what the place is worth to you, make an offer and stick to it.

good luck

HugoSP

I would echo that advice. As a buyer, treat that prospect as you would any other. There may be no reason you would get it cheaper but you should definitely not be attracted to it just because it is a repossession.

Doozergirl

Yes you could pull out. They do generally ask for 28 days to exchange, so be prepared.

And you won't necessarily be up against anyone else, except of course the person that has already made the offer. I've grabbed a few repos at good prices and not met any opposition at all. Many people just aren't up for bidding wars at all.

joeyjac

I didn't actually realise it was a reposession when i first got the details.

Think i'll go in a few grand above £112k and see where it goes.

Thanks for all the great advice

x

Doozergirl

Don't worry about bidding against other people, especially in this situation.

Every pound extra is either a pound less debt or a pound more in the bank for the person who had their house repossessed

SquatNow

Are you a cash buyer, or are you planning to get a mortgage?

joeyjac

I need a mortgage unfortunately:o. I sold my house 4 weeks ago, they want to be in by end of Nov at latest so I'm hoping the 28 days thing wouldn't be a prob? (they are 1st time buyers so not much of a chain)

It would of been better if i could of got that sale out of the way first then gone after this one but its not possible. I will just have to keep my fingers crossed.

joeyjac

Just spoke to the agent, 7 days isn't up til thurs so at least i have a bit of time. I'm going at 10.30 to have another viewing so i can get it straight exactly what needs doing (lots!)

I'll let you know how i get on.