Repossession going to auction

Jorgan_2

lenny83 wrote: »

Lol.. I wish I could wait until the auction to see what happens, but haven't got the bottle! Do they not put a reserve on houses so they only sell if they reach a certain price? Never been to an auction!

I just can't see it selling for 20-30% less than it's for sale at now..it's a 4 bed detached in a good area so I feel there would be loads bidding for it if it was that cheap

I've had clients in a similar situation to yourself, one went to auction & bought the property for £20k less than they had offered. Another property sold for £10k more than the open market value, the auction was held in London & the buyers thought it was a bargain. Oops.

HelpWhereIcan

From the time you say the property has been on the market I guess there is no HIP (even an out of date one) that would allow you to 'preview' the searches.

If the main thing that is preventing from you completing in the next 2 weeks is the searches, you should ask your solicitor about indemnity insurances.

You can get indemnity insurances for delayed searches or even no searches at all. They will protect you financially against a loss caused by information in an adverse search but you must get advice from your solicitor about the pros and cons and make your own decision.

I had a customer use them to buy a repo'd new build and they cost him around £50 for delayed searches but allowed him to complete in the time required.

Good Luck

SquatNow wrote: »

No. In fact lots of BTLs were 100%, especially during the time you state this proprty was purchased

I wish I could have got some of those 100% Buy to Let products!!

Silvercar is correct that the majority of lenders do no more than 85% with a couple doing 90% for a short period.

However there will have been a number of people suckered in by various investment companies (in collusion with corrupt surveyors, advisers and solicitors) into believing that a new build city centre apartment was worth more than it actually was - but they will not be 'the majority' by any stretch of the imagination.

lenny83

Wow thanks for the advice every one:D

The solicitor applied for the searches yesterday (Thurs) and local council website says allow 3 working days for them to be returned, which would be perfect..

Estate agent said nothing has changed, our offer still stands but we need to get a move on! Solicitor said it may be possible to exchange before the auction but it depends on the searches. (Will ask about indemnity insurances if they take longer than expected)

The online catalogue for the auction in the first week in April is now available on the agents website, and the house is not on it. Is this normal?

Jorgan_2

lenny83 wrote: »

The online catalogue for the auction in the first week in April is now available on the agents website, and the house is not on it. Is this normal?

It can be, again depending on the company. Entries can be added as late as a week before the auction so keep an eye out for it.

Speak to your solicitor on Monday and ask if they have raised any additional enquiries, if they haven't , do they intend to? You need to get everything wrapped up ASAP and there is the Easter bank holiday to contend with, which will loose you two possibley three days.

lenny83

Hi.. Would that suggest that they haven't agreed for it to go to auction yet, perhaps they are seeing what happens in the meantime? I hope so!

We got a letter today off solicitor saying 'I have now recieved draft contract documentation and have raised any neccessary queries etc etc' and she said on the phone it's just the searches we are waiting for..

Just noticed on the councils website it says an extra £20 can be paid to recieve them on the same day via fax. I wonder if this could still be done on Monday:o

Jorgan_2

lenny83 wrote: »

We got a letter today off solicitor saying 'I have now recieved draft contract documentation and have raised any neccessary queries etc etc' and she said on the phone it's just the searches we are waiting for..

Just noticed on the councils website it says an extra £20 can be paid to recieve them on the same day via fax. I wonder if this could still be done on Monday:o

I'm puzzled. Check with your solicitor when they received the draft documentation, most of the companies I deal with will start the 28 days from when they issue the draft contract to the buyers solicitor, a few will do it from when the 7 days notice expires. Check with the agent as to what system the seller in your case uses. Then ask them to confirm with the seller as to when the contract was issued. It seems odd that, from what the solicitors letter says, that they have only just received the draft contract when the 28 days to exchange has already gone.

Good to hear the solicitor has raised the necessary queries, but you need to understand that they may need to raise additional queries, depending on what answers the first lot of enquire's come up with.

lenny83

Tbh that is the first letter we have had off the solicitor (apart from welcome pack), so they may have recieved the draft contracts a while ago. Perhaps they didn't send us the letter because we hadn't paid the deposit for the searches to be done. Not really sure.. but it had a map attached of the estate with the boundaries marked out. We also got a seperate letter with the mortgage deed to sign.

Thanks for the help:o

nelly_2

In my case it seems they will let us have it even if we miss the date.

I got their EA to ask them to hold off which its seems they will do but it also seems we will exchange before the date anyway.

I must admit I do seem to have found britains only usefull and competant EA's who understand business transactions and how they fail

Although my solicitor is one more stupid comment off me going round and sacking and kicking her

space_rider

I had that happen to me and the house actually sold for 125,000 at auction and I had offered 134,000. It was up for months before I made an offer on it. I was rather miffed as I really did like the house. It was 2 years old too. The person who bought it at auction offered it to me but I decided not to buy it. I decided that I had lost it for a reason and bought a house on the same estate for 10,000 more! This is semi and that was end town house. I also found out that the reserve was also less that I had offered. I would have been in the position to complete a week after it sold at auction. The irony of it too is the fact that the Building Society I was using was the same one that had the mortgage on it. Sheer stupidity on their side as they would have got more from me.

Jorgan_2

space_rider wrote: »

The irony of it too is the fact that the Building Society I was using was the same one that had the mortgage on it. Sheer stupidity on their side as they would have got more from me.

The person who was repossessed will still be liable if there is a shortfall in the amount borrowed compared to the selling price, so the lender hasn't lost out at all.