house.. buying a repossession ???

[JeffC]

Ive had an offer accepted on another house that was reposessed last year, jus had a memorandum of sale through from estate agent and noted that the property is to "remain available for sale until exchange of contracts" I  wanted to pay for the house straight way to secure the sale but the estate agents told me last week that an anouncement had to go in the paper for 1 week that an offer had been accepted and anyone wanting to put in a higher offer blah blah..

If after this week and no one puts in a higher offer  ?Im guesing I will here something from the estate agent do we then have a contract ?? do  I  then instruct my solicitor (and start spending money)  but would I be right in thinking if someone puts in a higher offer I could be left out of pocket for anything I spend on searches etc   Or as they have allready formally accepted my offer  and no one put in an offer in the said week do they have to sell the house to me If I complete before any other interested party

       

[mud]

buyers market , sit tight and await their response.dont instruct anybody until you have written confirmation of sale.

[JeffC]

exact wording was..

QUOTE

property to remain fully available until exchange of contracts has taken place subject to 21 day exhange with completion with 7 days of that date public notice to be issued in local press

[peterg]

I think you'll find it's fairly standard as it's a reposession since the debt holders (presumably a mortgage company) are looking to get as much of their money back as possible hence leaving it on the market after your offer was accepted as it possibly might raise some more interest in the property...

Like mud says, sit tight and see what happens and don't commit anything until they do  

[Paul Hurdsfield - Joint Manchester AO]

We bought a repo last year, we placed a low offer and forgot about it, in the meantime we bought another house, then about 3 months later our offer was accepted the house needed a lot of work, the previous owner just left everything behind, family photos, bank statements, cigars  you name it.

Anyway we got on with it , fitted central heating new windows, new kitchen, decorated throughout, but we now have a tennant in and using the landlords formula it's financially a good deal.

So yeah go for it, but put in a daft offer and sit it out

[Asterix]

Where have you guys sourced the repo's from (websites*/ local property muppets estate agents/ local papers/ other)?

*If yes, which?

[stephenh]

Jeff, this is standard practice with repossessions. The lender/seller wishes to avoid the owner being able to argue that the lender failed to get the best price reasonably available. You shouldn't have search fees to pay, they are in the hip. No binding contract until contracts are legally exchanged, so you need to get your solicitor on the job sooner than later.

[V8grunt]

Just to point out that until you have signed ANYBODY can step in with an Higher offer and you can loose the money to the solicitor.

Companies like "Yourmove" discourage anyone looking at a re-possesion after they have had an offer excepted to stop the above happening.

[samcooke]

Wot stephenh says.

If you really want it, you need to get to exchange ASAP. If you wait until the notice in the paper has expired you've wasted a week and increased the chance of someone else coming along.

If you are ready to exchange the day the notice expires then they'll take it - sometimes even if there is a higher offer...

If someone does offer more and the lender is looking to accept it you can always match it.

QUOTE

Companies like "Yourmove" discourage anyone looking at a re-possesion after they have had an offer excepted to stop the above happening.

In practice this happens, but it shouldn't. If an agent does this then the borrower (repossessee?) has come back against the lender - "You undersold my house so I ain't paying the debt". I suspect Your Move would strenuously oppose that comment!

[Paul Hurdsfield - Joint Manchester AO]

We use a solicitor we know, because 'we' as a family put a fair bit of business her way, she doesn't hang around, so we tell the vendor we can complete in 4-6 weeks if their solicitor can keep up, that usually does it.

[JeffC]

I completed the last one I bought in 5 days and can prob do the same with this one as we are ready to buy straight away, the agent didnt make it clear but I got the impression I could do anything til the public notice had been in a week?

[samcooke]

Definitely not. The lender will gladly issue a draft contract straight away, they don't really want to do the 7 day thing, they're just covering their backs.

You've had the memo of sale already, so will your solicitor and the lender's solicitor, so the contract is probably on its way over now. If your solicitor can look it over to their satisfaction and you can transfer the money in time there's no reason why you can't exchange the day after the notice expires.

Trust me, I used to be an estate agent...

[Nick Algar - Competition Secretary]

Trust me, I used to be an estate agent...

Careful Jeff, I heard Estate agents are nearly as bad as second hand car salesmen                      

[John Loudon - Sponsorship Liaison]

It sounds like there's good money in painting helmets    

[JeffC]

It sounds like there's good money in painting helmets    

doesnt seem to any money in anything at the mo hence trying the property ladder plenty other people seem to make a few quid at it so got to be worth a go  , or is someone going to tell me different