House repossession during purchase

turbotroll

Hi,

Wondering if anyone can provide advice concerning the purchase of a house? It was brought to my attention late on Monday evening that the vendor was due to appear at the local magistrate court on Wednesday morning concerning reposession of their property.

I immediately contacted my solicitor on Tuesday morning who promptly arranged for the completion of the necessary paperwork that afternoon.

Unfortunately, my solicitor left an answerphone message on Wednesday advising that the vendor had handed over the keys to the property at court.

After speaking to my solicitors secretary on Thursday morning, it appears that our solicitor is now attempting to contact the bank who reposessed the property to resurrect the sale.

I'm really not sure how this will work and friends have advised that I should seek a lower purchase price?

I would have thought that signing the paperwork on Tuesday would have secured the property, although I understand that contracts must be exchanged, however it appears this did not happen.

I also understand that the property must now be advertised locally even if bank accept my offer?

Stew.

silvercar

what vendor hands over the keys when he has a buyer about to complete? Where is the vendor's solicitor in all this?

Repossessions can be undone, particularly if there is only a short timescale between the repossession and the purchase completion. The lender has a duty to "treat customers fairly" and this would include not repossessing hours before a sale completes.

It may be that you signed the papers in preparation for exchange, although contracts weren't actually exchanged.

The property would only be offered on the market again and readvertised if there was a good reason why the lender couldn't let your purchase proceed. This may be the case if the lender felt your were buying well below a price that could be achieved by remarketing. YOu trying to obtain the property at a cheaper price only works if the lender decides to repossess and remarket.

turbotroll

Thanks.

Concerning the purchase price, an offer was accepted by the vendor of around 10,000 lower than market value.

To be honest, I'm thinking of pulling out of the purchase altogether.

Stew.

tr3mor

turbotroll wrote: »

To be honest, I'm thinking of pulling out of the purchase altogether.

It does sound like it could be turn out to be a lot of hassle.

Ther's plenty more fish in the sea...

epz_2

turbotroll wrote: »

Thanks.

Concerning the purchase price, an offer was accepted by the vendor of around 10,000 lower than market value.

To be honest, I'm thinking of pulling out of the purchase altogether.

Stew.

ah one of them, obviously you knew the seller was in trouble when you offered the below market value price so thems the breaks. obviously the seller would prefer the 10k to a decent credit rateing.

i seriouly doubt you could still buy the place, as you say your offer is below market value which probably means some sort of survey has been done. the bank have a legal obligation to get the best price so you cant just hatch a deal with them.

PasturesNew

£10k in my opinion isn't a bad offer at any time. I took an offer of £11,500 off the asking price of my house earlier this year and I had no 'need' to sell except I wanted to. So no pressing debts or other house purchase.

It is likely, therefore, that the bank would see this as a good offer. Why take the risk to go to auction and possibly not sell or sell for much less?

An asking price is simply the price an estate agent speculatively priced the property at when trying to win your business.

A bird in the hand is worth two in the bush.

epz_2

op said market value not asking price. they are likely one of those folk going round offering to buy your place quick at a discount on what its worth cause the sellers are desperate, its the new BTL.

withabix

What defines the market value is what people are prepared to pay.

Currently, this is likely to be lower than the pevailing prices acheived recently in the same area.