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  • FIRST POST
    • Nutella18
    • By Nutella18 13th Apr 19, 11:23 AM
    • 29Posts
    • 6Thanks
    Nutella18
    Buying an insolvent house? Help?
    • #1
    • 13th Apr 19, 11:23 AM
    Buying an insolvent house? Help? 13th Apr 19 at 11:23 AM
    Hi

    I have had an offer accepted on a property. It went to a closing date (Scotland) and out of 8 bids I won. Yeee

    Anyway after the offer was accepted and mortgage offer has been issued my solisitor informed me I am buying it from the bank as the house has been made insolvent. The only details I got from the EA is that they occupier died nothing else but she basically said the house is insolvent and the bank are getting the money.

    This is totally alien to me but she basically said that the family have washed there hands of it and it is now in hands of the bank. What I donít understand is why would the family not just sell the house to pay debts and keep the rest?

    The house is ex council so they would of bought it for a really low price, I paid 5k over home report valuation at 110k but surely there canít be that much debt on the property, the lady that stayed there was old.

    Just looking for any advice you have to offer on the situation, I didnít exactly get a bargain as I am paying a good price. It is a exceptionally popular neighbourhood and the houses go over valuation by about 5k-20k depending on state.
Page 2
    • martindow
    • By martindow 15th Apr 19, 9:17 AM
    • 8,092 Posts
    • 4,694 Thanks
    martindow
    As this is Scotland will the OP be potentially better off regarding faults in the house than they would be in E and W? Normally in Scotland you have some comeback if faults are discovered in the first few days after a sale, but maybe this doesn't apply to repossessions.
    • davidmcn
    • By davidmcn 15th Apr 19, 9:25 AM
    • 10,915 Posts
    • 12,019 Thanks
    davidmcn
    Normally in Scotland you have some comeback if faults are discovered in the first few days after a sale, but maybe this doesn't apply to repossessions.
    Originally posted by martindow
    Such warranties are normally excluded in any situation where the seller isn't familiar with the property. The bank won't be undertaking to do much more than give them a good title to the property.
    • HalfPint
    • By HalfPint 15th Apr 19, 9:27 AM
    • 635 Posts
    • 767 Thanks
    HalfPint
    The previous owner of our house was deceased, though not insolvent. As other have said, check everything and have a pot of cash for any unexpected repairs. Regards clearing the house, if the family have washed their hands of it then it will probably fall to you to clear it but you may find some value in what remains. The family eventually cleared our property but only after we had our solicitor request it formally (more than once).

    Congratulations on your new home!

    HP
    DEBT FREE DATE: 05/02/2015!


    Those things in life that we find the hardest to do, are the things we are the most thankful we did.
    • davidmcn
    • By davidmcn 15th Apr 19, 9:35 AM
    • 10,915 Posts
    • 12,019 Thanks
    davidmcn
    maybe you'll find some gold sovereigns or a diamond ring etc.
    Originally posted by AnotherJoe
    if the family have washed their hands of it then it will probably fall to you to clear it but you may find some value in what remains.
    Originally posted by HalfPint
    Bear in mind that in a repossession, the bank never acquire a title to any moveable property, so technically anything left behind still belongs to whoever left it there (or in this case, the trustee in sequestration or whoever is dealing with the debtor's estate).
    • markin
    • By markin 15th Apr 19, 2:23 PM
    • 195 Posts
    • 249 Thanks
    markin
    Check everything for hidden cash, inspect and cut open the mattress, sofa and pillows, draw liners.
    • Nutella18
    • By Nutella18 15th Apr 19, 7:18 PM
    • 29 Posts
    • 6 Thanks
    Nutella18
    Hi just to update the bank have agreed to clear the house, they are doing this on the basis that the EA never marketed the property as “sold as seen” and never even indicated it was being sold by and bank and that there will be no guarantees with gas/electric. The bank have agreed access for me to get gas/electric checked tomorrow, it has been on a timer so not taped or drained systems but just to be on the safe side.
    • AnotherJoe
    • By AnotherJoe 15th Apr 19, 8:42 PM
    • 13,500 Posts
    • 15,961 Thanks
    AnotherJoe
    Surprising but good news for you. Let us know when you move in !
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