Offer on our house - should we accept?

SuzySu

We have just had an offer of £260,000 on our house (on the market for £275,000) which, in the current climate, we think we should seriously consider. My concern is that the amount will not clear our outstanding mortgage PLUS our secured loan settlement figures.

Has anyone got any experience of these loan companies (Picture to be precise) accepting a lower figure in full and final settelment? My feeling is that if we are repossessed (which is quite likely at the moment) they will not get anything like what they could get now from our reduced offer.

Any ideas anyone before I call them this evening?

Doozergirl

You might want to ask this question on the DFW board, SuzySu. I'm guessing there are people there who will know as well.

Is this the same offer or another one?

SuzySu

Hi again Doozergirl.....it's a different offer and I really think we should accept this one. I've been kicking myself ever since we turned the other one down and I reckon house prices are going to fall even more over the short term.

Unfortunately they are not in such a good position as the previous vendors (they were in rented) - these ones have just sold their property - but at least it's another offer.

SquatNow

Accept the offer. How much will you have outstanding once you sell? Can you convert that to an unsecured loan?

nixinix

I have no experience really in this area but could it be worth talking to your lenders - or even talking to a solicitor (or other official type person) who could talk to your lenders on your behalf.

I know when my dad had his house repossessed (Birmingham Midshires, local branch) I only found out after the event, but I went and straight away talked to the branch manager who was able to authorise various actions which meant we got the house keys back that day and I took over the mortgage.

So if you are with a lender who has a branch you could try making an appointment to talk to the manager...obviously this only works if you a) have a branch as over the phone is harder to get to a person with authority and b) if you want them to know ALL the details. But in my experience if you ask for 'help' and are being proactive then they are always willing to listen and help if they can.... afterall it is ultimately in their interests too. Good Luck.


EDIT: Just read Picture is involved - I know nothing about them but maybe this approach could still work.....

firesidemaid

no experience with picture, repossesion etc.

but, looking at your previous thread the 260k looks like a good offer in this climate. maybe picture will take 5k less (or more) in full and final.

good luck to you x

SuzySu

Thanks all for your good wishes. I have spoken to Picture this evening and they said I must put my case in writing. They only deal with secured loans and normally would not consider taking less than the full amount.

The problem is the offer of £260K would, in fact, cover our outstanding mortgage (£198K) and secured loan (£57K) but will not leave enough left for us to pay our EA (£2,600), solicitor (£1000), HIP (£500), moving expenses (£??) plus a month and a half's rent up-front (approx £2500).

Added to this is the complication that we are in arrears with our mortgage so they can't even give us a true settlement figure. We must get our solicitor to request the figure from their solicitor and this will mean even extra expense.

It will be obvious to Picture that the offer of £260K will be enough to pay D Line and them, so why should they agree to accepting less? Why should they care that we won't have anything to pay the EA, sols and our rent?

Please can you offer any advice on how to proceed from here. We have accepted the offer this evening but can't really get excited as we are not out of the woods yet.

susanmarie

I would accept this offer £15k off a £275 ask isn't that much in the current client, most 1st offers are going in 10% less.

What are the chances of the buyers increasing their offer? Bare in mind Esate Agents are really keen to complete sales at the minute as their gravy train is drying up so they just might not be working for your best interest - not a nice thought, but in my opinion a realistic one.

Maybe before you agree you could get a cash comparison?

SuzySu

Thanks SusanMarie. We have accepted the offer this evening as I don't think we are going to get a better offer either. The buyer has said he will offer £260K, it's a serious offer and will not be able to increase it. It's take it or leave it type of thing. We have already turned down one offer of £260K and have regretted it ever since. It would be completely bonkers to turn down another offer for the sake of a few extra thousand as things are only going to get worse.

I appreciate your point about the EA needing to get the sale, but at the end of the day we are candidates for repossession as we are in arrears with the mortgage so really need to get out......and quick!

Kez100

I wish you all the very best in moving forward and sorting everything.

silvercar

If your buyer came on here and said he had offered 260k for a property, I would have said that no-one pays just over the 250k stamp duty threshold. At 250k stamp duty is 1% ie £2,500; at 260k his stamp duty is 3%, £7,800.

Achieving a price in the 250-270 range is very difficult for this reason, particularly in a falling market.

If he is a genuine buyer stick to him like glue.