Bought an house at auction and now regret it

Davesnave

Comms69 wrote: »

Good shout I remember this chap.

From what I've seen elsewhere, the writing style is very different, so I doubt if you do.

Slithery

Samfootball wrote: »

...and I think I'll just have to face the consequences and end up loosing the deposit..

The deposit is the absolute minimum that you'll be liable for.

If you back out and the seller can only get say £30k less in the next auction then you'll have to make up the difference as well.

eddddy

Samfootball wrote: »

.. unless there's an experienced propery developer on here willing to purchase the property. It's a very nice and big house in the North West and would have loved it as my first buy until realising I couldn't get a mortgage on it. Message me if interested *** serious enquiries only***

Realistically, at best, an 'experienced property developer' would probably see you as a very financially distressed seller - and see if there is scope for making a quick profit by bleeding you dry.


Your best option might be to see if you can raise temporary bridging finance, and put the property straight back into the next auction.

Hopefully, it might sell for about the same as you paid, so your only losses would be finance and auction costs (which might be much less than the 10% deposit.)

If you're really lucky and it sells for more, it might cover your auction and finance costs.

Obviously, if it sells for less, that's not such good news!


Talk to the auctioneers - I suspect they will have encountered this before, plus they're likely to have contacts in bridging finance etc.

CarrieVS

babyblade41 wrote: »

Oh dear..firstly it is never nice to lose a vast some of money you saved for , but.......what on earth were you thinking as a FTB

To be fair to OP, as an FTB I've experienced one estate agent constantly try to get me interested in auction properties, knowing I was an FTB and after I'd said I wasn't comfortable with auctions. One of their reps kept trying to convince me, they rang me up abut auction properties they thought I'd be interested in, and without asking they signed me up to their auction-specific mailing list.

I stuck to my guns but if I'd been a little more easily led or not had anyone trusted to ask advice of, I might have been inclined to think "these professionals who know my position think it's an idea worth considering."

Best of luck, OP, in getting something sorted.

eddddy

CarrieVS wrote: »

To be fair to OP, as an FTB I've experienced one estate agent constantly try to get me interested in auction properties, knowing I was an FTB and after I'd said I wasn't comfortable with auctions. One of their reps kept trying to convince me, they rang me up abut auction properties they thought I'd be interested in, and without asking they signed me up to their auction-specific mailing list.

I stuck to my guns but if I'd been a little more easily led or not had anyone trusted to ask advice of, I might have been inclined to think "these professionals who know my position think it's an idea worth considering."

I'd guess that was a different type of auction - probably a conditional auction (sometimes called 'The Modern Method of Auction').

With those, if you win the auction you can still decide to walk away without breaching the contract - but you would lose the (substantial) reservation fee.


It's hard to believe that an EA would have encouraged a FTB to buy at a traditional auction.

Arklight

Assuming this isn't a wind up isn't he on the hook for the entire amount by completion date?

I find it hard to believe anyone who had managed to acquire any money at all, would buy property at auction with no conveyancing, not having visited the property, or even spoken to a solicitor or mortgage company.

Slithery

Arklight wrote: »

Assuming this isn't a wind up isn't he on the hook for the entire amount by completion date?

Not quite, see my previous post.

Failure to complete would mean that the OP would be liable for all reasonable costs required to put the vendor back in the position that they would have been in if the sale had completed.

FreeBear

Samfootball wrote: »

I've posted on this forum for the first time, so not used this before. I'm not sure if there was someone else with a similar username but it wasn't me.

FreeBear wrote:

If I'm mistaken, I'll apologise, but the user name is way too similar.

I stand by my apology. Unfortunate that you picked a user name very similar to one that has been banned.


As for your current predicament, I fear you will end up massively out of pocket. Hopefully you are young enough to rebuild your savings and not suffer any lasting damage.

jay213

Any updates?