Gazumped on Exchange Day - Repo

Bumziggy

Hey experts,

We are buying a repossessed property (125k) and have absolutely everything in place. My solicitors rang up the sellers solicitors to exchange only to be told a higher offer has been made that morning and they were told to not exchange until further notice.

At that point in time the higher offer was not accepted and the EA phoned me and asked if I would up my offer, to which I played hard ball and said no.. we are about to exchange. I rang him back later to get an update as to whether they were accepting the higher offer or not (which I believe is 2k more) and he said they were considering it... Couple of hours later he tells me they have accepted the higher offer.

Am I missing something here? None of this makes any sense. Why were we not able to exchange, they had not accepted the offer at that point. It all seems a bit suspicious to me that on the day we are exchanging they receive a higher offer, which should be submitted in writing according to the public notice, and that offer has made its way to the selling agent LSL who then instructured their solicitors to not exchange all within a few hours. During all this LSL has contacted their client RBS advised I'm not upping my offer and RBS have given them a decision to accept the higher offer despite being in a position to exchange now. It took LSL and RBS 3 days to accept my offer and all of a sudden they have a rocket up the rear for the sake of 2k?

What should I do? Can I ask the AE for proof of this higher offer? Should I ask for some sort of letter stating they have withdrawn my offer for it to be official? Do I have a right to know now (not wait for public notice) what the higher offer is? Should I just play it cool, say nothing and hope its all smoke and mirrors to squeeze me? Is that a thing in these circumstances.

As you can probably tell by the time of this post that I'm losing sleep over this. I thought we were home and dry on Tuesday.

Thanks

m0bov

For just 2k? Seems odd. I'd just start looking elsewhere.

tasticz

I would not entertain look for other propertids. If they come back and ask if you're still intrtested. Tell them the offer is now £10k lower than previous offer

warby68

If its a repo the bank probably has the obligation to obtain the best price and doesn't have the same urgency to get the sale done and dusted as you do.

Is it likely that it is a reluctant owner and this mysterious 11th hour offer is a delaying tactic somehow?

I honestly don't think you'll gain much by digging into it but you can always leave your current offer on the table if you want to for if it falls through. They know you're ready to go.

magicman62

my daughter and son inlaw are going through the exact same dillema ..money paid on solicitors boxes packed things bought obly to be told the property had been sold to someone who put in a higher offer ..the werent told or given an opportunity to up theres , the found out this on completion day ...

eddddy

I suspect that the EA and RBS are as frustrated as you by the new late offer.

It means delays, hassle and extra work for everyone.

However, RBS are forcibly selling somebody else's house, so they have a legal duty to achieve the best price reasonably possible.

Potentially, the repossessed house owner could take RBS to court and claim damages saying "why didn't you accept that offer of £2k more, because then my debts would be £2k less?".


I doubt that RBS are playing games with you, because if they were, they could end up having to explain themselves in court.

If you increased your offer by £2k, I'd say it's almost certain they'd go with you - unless the other person then adds another £2k to their offer etc.

pinkshoes

Either increase your offer by £2k and insist on exchanging in 24 hours, or inform them that your initial offer still stands and they have 7 days to exchange before it is withdrawn.

Put this in writing.

The lender needs to recoup as much money as possible so if there is a feasible offer of £2k more then they need to take it.

AdrianC

Duplicate thread
https://forums.moneysavingexpert.com/discussion/6062156/gazumped-on-exchange-day-repo

MobileSaver

Bumziggy wrote: »

Am I missing something here? None of this makes any sense. Why were we not able to exchange, they had not accepted the offer at that point.

Unfortunately for you, lenders have "a legal duty to sell the property for the best price that can reasonably be obtained" so if the new higher offer was credible and cost-effective they had no choice but to accept that one over yours. (For example, that £2k may be the difference between the home owner still owing nothing or still owing something on their mortgage.)

What happens if repossession occurs?

Bumziggy wrote: »

What should I do? Can I ask the AE for proof of this higher offer? Should I ask for some sort of letter stating they have withdrawn my offer for it to be official? Do I have a right to know now (not wait for public notice) what the higher offer is? Should I just play it cool, say nothing and hope its all smoke and mirrors to squeeze me?

You can ask for anything you want but you're unlikely to get it - until Exchange no-one has any obligations to you.

I think you sadly already know what your options are: (1) play it cool and hope the other offer falls through or (2) eat humble pie and match the other offer highlighting you are ready to Exchange immediately.

It all depends how much you want this particular property, where you'll be living in the short term if this doesn't go through, whether the price being asked represents a good deal and how much you've already spent on legal fees etc.

AdrianC

magicman62 wrote: »

my daughter and son inlaw are going through the exact same dillema ..money paid on solicitors boxes packed things bought obly to be told the property had been sold to someone who put in a higher offer ..the werent told or given an opportunity to up theres , the found out this on completion day ...

No, on the day of exchange... It was only completion day because they were exchanging and completing on the same day. Never the best plan.

MobileSaver

magicman62 wrote: »

my daughter and son inlaw are going through the exact same dillema ... found out this on completion day ...

Which is why most people here would almost never recommend exchanging and completing on the same day.