Can't sell house at auction - alternatives to repossesion?

Bendex

We moved to USA and have been trying to sell UK house since last Oct, first with an estate agent, and then auction.

It was supposed to go into live auction tomorrow but the auction company called today to tell me it wouldn't be put in due to lack of interest

We have used up all our savings funding the mortgage and council tax (Durham charges 100% with no discount for unoccupied and empty, and after 1 year they charge 150%)

I plan on calling the bank on Friday to see if we can get a payment holiday or something

Some numbers-

Bought house in 2006 for £189,950
Had an offer of £170,000 but that fell through (couldn't get mortgage)
Auction has it marketed at £100,000 but no interest
Tried a couple of "we buy any house" type companies but they don't want to know as recent marketing has it at such a low price

I am at a loss.....and considering repossession as a viable option

Any help appreciated

sgun

Where are you in Co Durham? Pretty sure there is more to this than you are letting on as anything sells at the right price. What is wrong with the house/area? Something major is putting off the vultures and I'm guessing you know what this is.

Editing to say the vultures think 100k is a low price. In alot of Durham that is a really high price. Perhaps you paid well over the odds in 2006.

Bendex

Actually, no.

There is nothing wrong with the house

It is on Rightmove- 17-19 High St, DL16 7PQ

es5595

Rightmove link;

High Street, Byers Green, Spennymoor, DL16
https://www.rightmove.co.uk/property-for-sale/property-80945780.html

pphillips

Perhaps properties are just not selling in Durham.

My advice is rent it out.

Mistermeaner

just my 2pennies; house looks ok and IMO 'cheap'

Is there something wrong with the surrounding area?

Was someone murdered there etc?

Bendex

No murders or anything bad.......in general Durham properties aren't selling (I followed a couple of newer homes and have seen them dropping their prices and still sitting on market, which is why i thought auction would be a good choice)

We have rented it out in the past (been in USA for 6 years) but we had 1 lot of tenant trash the house, so not keen to do that again, as the repairs and new carpet cost about 3 times the security deposit

pphillips

I don't think repossession is a viable option as you will have to pay the legal fees when the mortgage company takes you to court and take another hit when the house sells for next to nothing.

If you don't want to rent it out then can you not lower the price again for a quick sale?

Tom99

What about a traditional auction, someone like Allsops in London which have hundreds of residential properties located all over the place for sale in each auction, 346 lots in next weeks auction.

eddddy

Bendex wrote: »

Had an offer of £170,000 but that fell through (couldn't get mortgage)

Do you mean that the property is unmortgageable?

Did a mortgage valuation take place, and if so, what was the valuation?

If the property isn't mortgageable, there's no point in using the 'Modern Method of Auction'. As Tom99 says, you could try a traditional auction.


If the property is repossessed (and the market is as stagnent as you suggest) the bank will probably end up putting it in a traditional auction anyway - and you will be liable for the mortgage shortfall (plus any fees).

CIS

Bendex wrote: »

We moved to USA and have been trying to sell UK house since last Oct, first with an estate agent, and then auction.

It was supposed to go into live auction tomorrow but the auction company called today to tell me it wouldn't be put in due to lack of interest

We have used up all our savings funding the mortgage and council tax (Durham charges 100% with no discount for unoccupied and empty, and after 1 year they charge 150%)

I plan on calling the bank on Friday to see if we can get a payment holiday or something

Some numbers-

Bought house in 2006 for £189,950
Had an offer of £170,000 but that fell through (couldn't get mortgage)
Auction has it marketed at £100,000 but no interest
Tried a couple of "we buy any house" type companies but they don't want to know as recent marketing has it at such a low price

I am at a loss.....and considering repossession as a viable option

Any help appreciated

The premium kicks in only after 2 years but there are potential ways to mitigate the extra amount so that the 50% extra does not apply. The law has changed so that in future council's will be allowed to charge 100% extra.