What to know about Reposessions?

RubyShoes

I am currently looking to buy my first home. I am coming across an incredible amount of reposessions and am currently thinking of making an offer on one which is a new build (1 year old).

I considered another identical property on the road earlier this year, which was a shared ownership property with a total price of £159,950. I decided not to buy this, based on the fact at the time the houses (there are 2 of them) that had been reposessed were on at £140,000.


Well, the prices have been steadily falling on the reposessed houses, and now one of them is on at £116,000!!!!!!!! I think its a total bargain, and would be crazy not to make an offer! Its a 3 bed, detatched, 2 reception rooms, garage, drive, garden, 3 bathrooms. It literally just needs painting wood and walls) a new garage door, and a new letterbox!!! :rotfl:

But, what should I be aware of in this situation? I know there was a 28 day completion with it, but is there anything else that I should be wary of? Hidden costs etc? Does it cost to have electric, gas, water and phoneline all turned back on??

Any advice would be appreciated!

Ps. I am very sad to see the number of ex council properties that have been reposessed. It makes me angry that all this right to buy has profited the banks and mortgage companies, and left people who were possibly vunerable in the first place (why would they get a council property otherwise?) in an even worse situation. They started off homeless, now they are homeless and in MASSIVE amounts of debt.

:mad:

clutton_2

""are homeless and in MASSIVE amounts of debt" and now you plan to take advantage of their situation ..............

RubyShoes

No, I don't. I am buying off a greedy BTL'er who bought 2 properties, on massive discounted schemes, and when the discount (£500 off mortgage for 1st year) ran out, the reposession came along. He obviously didnt think his plan through.

I feel no guilt at this.

I would to the homeowners who bought their properties, and were left homeless. This landlord was greedy and stupid.

jonewer

How is it "taking advantage" to buy a repo'ed ex-council house?

Utter balls.

I have no sympathy with the unbridled avarice of those who are lucky enough to be handed a house on a silver plate by the government (paid for by your truly), are then offered the opportunity to buy the place outright at a massive bargain bonanza discount price and then find they cant afford it.

Tough titty. Enjoy sleeping on the streets.

PasturesNew

clutton wrote: »

""are homeless and in MASSIVE amounts of debt" and now you plan to take advantage of their situation ..............

Fact 1: Somebody has to buy it
Fact 2: Better that it is somebody making it their home
Fact 3: If nobody bought it, it would appear again for sale at a lower ... and lower .. and lower price until somebody buys it - and the lower the price the more the previous owner STILL owes on it.

So, in a way, it's doing everybody a favour as it's ending the pain.

lethal0r

clutton wrote: »

""are homeless and in MASSIVE amounts of debt" and now you plan to take advantage of their situation ..............

oh i cant buy this house, its too cheap, please help me find a more expensive one

mark3528

jonewer wrote: »

How is it "taking advantage" to buy a repo'ed ex-council house?

Utter balls.

I have no sympathy with the unbridled avarice of those who are lucky enough to be handed a house on a silver plate by the government (paid for by your truly), are then offered the opportunity to buy the place outright at a massive bargain bonanza discount price and then find they cant afford it.

Tough titty. Enjoy sleeping on the streets.

my mother and her current husband bought thiers off the taxpayer for £64k found out it was valued at £130k ish 2 years later and remortgaged for around 20k ish, typical numpties :rolleyes: spent the lot on a flash telly a few tattoes and an 02 reg ford ka, all worthless unsaleable tat , they just sold to one of those flogit to us and rentit back for a few weeks companies, no sympathy from me they had the chance of a cheap house and blew it on crap, as you say tough titty

puddings_2

Rubyshoes,

It's so hard for 1st time buyers to get on the mortgage ladder.
I think that it's a great plan for you to look at buying a repossessed property.

Try not to feel guilty about the people that lived ther before: if you don't buy it then somebody else will

david29dpo

I have bought many repros over the years and judging from the post i get most, if not all have gone mad with credit cards etc hence repossession. Why on earth should i or anyone else fell guilty about other peoples incompetence?

seven-day-weekend

If the house is being repossessed those people unfortunately are going to lose their house anyway. For whatever reason, they can no longer afford it.

Why should not the OP then buy it? It is not their fault.

The below lnk may help:

http://www.thesite.org/homelawandmoney/askthesiteqandas/housingqandas/repossessionpossession

Richard_Webster

If you buy a repo then the selling lender will know absolutely nothing about the property and therefore you will not get much in the way of answers to the questions in the Property Information form that is usually supplied.

Also, lenders seem to be very edgy about things like allowing you to send in a CORGI man to check that the central heating works etc because their insurance won't allow the water etc to be turned on - so you may have to take the risk of the system not working...

Very important to check the neighbourhood thoroughly - go there at different times of the week and actually talk to the neighbours. They may tell you something about the property you wouldn't otherwise know, but also you may be able to form some impression of them and rule out the possibility that they might be "neighbours from hell."

If you are prepared to take onboard those downsides then usually repos are good value.