Buying a reposed property
08 September 2008, 10:44 AM
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Buying a reposed property
Really sorry for all the house/mortgage questions of late.
Will a bank be more likely to take a sizable offer on a property that has been reposed? Rather than a private seller in a chain.
I know I could ask the agent, but I doubt I will get a honest answer.
Will a bank be more likely to take a sizable offer on a property that has been reposed? Rather than a private seller in a chain.
I know I could ask the agent, but I doubt I will get a honest answer.
08 September 2008, 10:49 AM
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No, they have to follow rules these days. In the last crash, the bank could basically sell someone's house they reposed at any value they wanted. So, the bank would sell the house on the cheap, just so long as it was enough to pay off the mortgage that had been defaulted on.
These days, the banks are required to sell at a fair value, not just recover the mortgage amount. In some cases this means its even harder to negotiate a discount as the bank has to be sure that the discounted value is fair. Which is why you often end up seeing them go to auction.
By all means try, I did, but at the end of the day the property went to auction....and I was horribly horribly outbid
These days, the banks are required to sell at a fair value, not just recover the mortgage amount. In some cases this means its even harder to negotiate a discount as the bank has to be sure that the discounted value is fair. Which is why you often end up seeing them go to auction.
By all means try, I did, but at the end of the day the property went to auction....and I was horribly horribly outbid
08 September 2008, 11:33 AM
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Depends on what you mean by sizeable, I had an offer accepted on a place just over a year ago that was £30k less than the bank was asking and £80k less than the exact same property next door just because it was a repossession and the one next door was a private sale. I didn't go through it with as found somewhere much better but its always worth asking.
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08 September 2008, 12:57 PM
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Cookstar, as I said once, some of my friends (a couple with kids) have recenty bought a repossessed house. They could have been outbid, but they were damn lucky not to be. However, the property they have is in tatters. They are involving a lot of money and time to do it up before they finally move in. They don't regret, as the location is superb. If you are putting yourself up for a repossessed house, be prepared to be disheartened by being outbid. Look for the properties that might not be so appealing to many. Some shabby house in a good location that you can renovate types. My friends' house is slowly coming on ok, looking good. 
Nothing wrong in buying tatty properties if you have finance to do it up, and an arrangement to stay somewhere while the work is going on. My first ex secured himself a few properties with the idea of "buy to let". 2-3 of them were repossessed, and all of them needed renovating. He did them up, and now he is making a decent 2nd income with them.
Good luck
Nothing wrong in buying tatty properties if you have finance to do it up, and an arrangement to stay somewhere while the work is going on. My first ex secured himself a few properties with the idea of "buy to let". 2-3 of them were repossessed, and all of them needed renovating. He did them up, and now he is making a decent 2nd income with them.
Good luck
Last edited by Turbohot; 08 September 2008 at 01:23 PM.
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