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ezkay

Shady Estate Agent Practices On Reposessed House

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I've been keeping an eye on a repossesed property round my neck of the woods - advertised at 2003 price, would suit me well and I know I'm probably going to take a minor hit, but I can handle that.

I've been calling the agent on a weekly basis for the last 6 weeks to find out what's happening with it - the first guy I spoke to told me it was going to complete the following week. Seven days elapsed and it's still on the website, so I called again, and apparently there are a few hitches but the sale is definitely still going through.

2 weeks later, the house is still advertised on their site. I call again and speak to a different bloke, am told it's definitely on the market and when would I like to view? Post-viewing, I put an offer in at £15k under the already reduced advertised price, upon which am told there are "4 or 5 offers on the table, all at the same amount as yours, but we are taking bids". I'm not prepared to up the offer, but we are FTBs, have a healthy deposit, have an agreement in principle and are able to complete in 8 weeks. I stick all of this down in writing, and pass it on, but am a little concerned about the different stories emerging out of the estate agents office (healthy or unhealthy scepticism?)

Off I go to the Land Registry - £3 and I have the title deeds, which list the lending bank, who are now presumably the owners (the original owner is still listed on the deeds). As I suspect my offer won't be passed on, and indeed, suspect the EA of some dodgy dealing, is it worth me contacting the bank to pass on the offer directly, and if so, who do I speak to in which department? Any help greatly appreciated.

Edited by ezkay

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I would just leave it a fortnight and then phone the estate agent and tell him that you have decided to reduce your offer by £5,000.

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I've been keeping an eye on a repossesed property round my neck of the woods - advertised at 2003 price, would suit me well and I know I'm probably going to take a minor hit, but I can handle that.

I've been calling the agent on a weekly basis for the last 6 weeks to find out what's happening with it - the first guy I spoke to told me it was going to complete the following week. Seven days elapsed and it's still on the website, so I called again, and apparently there are a few hitches but the sale is definitely still going through.

2 weeks later, the house is still advertised on their site. I call again and speak to a different bloke, am told it's definitely on the market and when would I like to view? Post-viewing, I put an offer in at £15k under the already reduced advertised price, upon which am told there are "4 or 5 offers on the table, all at the same amount as yours, but we are taking bids". I'm not prepared to up the offer, but we are FTBs, have a healthy deposit, have an agreement in principle and are able to complete in 8 weeks. I stick all of this down in writing, and pass it on, but am a little concerned about the different stories emerging out of the estate agents office (healthy or unhealthy scepticism?)

Off I go to the Land Registry - £3 and I have the title deeds, which list the lending bank, who are now presumably the owners (the original owner is still listed on the deeds). As I suspect my offer won't be passed on, and indeed, suspect the EA of some dodgy dealing, is it worth me contacting the bank to pass on the offer directly, and if so, who do I speak to in which department? Any help greatly appreciated.

The bank is never the owner....unless they pay the owner for it.

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I would just leave it a fortnight and then phone the estate agent and tell him that you have decided to reduce your offer by £5,000.

Good idea! And send a copy to the lender so he can see what a good job the EA is doing.

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The bank is never the owner....unless they pay the owner for it.

Even with a repossession? They had that stylish yellow "do not use" tape round all the plumbing.

I suspect the EA's trying to flog it to a mate, but then I tend to be cynical about estate agents.

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Even with a repossession? They had that stylish yellow "do not use" tape round all the plumbing.

I suspect the EA's trying to flog it to a mate, but then I tend to be cynical about estate agents.

an order for possession is just that...possession from the owner.

the sale proceeds belong to the owner, except the first charge (bank) will have in the possession order the right to first grab of any cash. anything left over goes to any other charge holders (ocean finance etc), the balance to the owner. If there is a shortfall, and the usually is, the owner still owes, but the new debt is unsecured.

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I've been keeping an eye on a repossesed property round my neck of the woods - advertised at 2003 price, would suit me well and I know I'm probably going to take a minor hit, but I can handle that.

I've been calling the agent on a weekly basis for the last 6 weeks to find out what's happening with it - the first guy I spoke to told me it was going to complete the following week. Seven days elapsed and it's still on the website, so I called again, and apparently there are a few hitches but the sale is definitely still going through.

2 weeks later, the house is still advertised on their site. I call again and speak to a different bloke, am told it's definitely on the market and when would I like to view? Post-viewing, I put an offer in at £15k under the already reduced advertised price, upon which am told there are "4 or 5 offers on the table, all at the same amount as yours, but we are taking bids". I'm not prepared to up the offer, but we are FTBs, have a healthy deposit, have an agreement in principle and are able to complete in 8 weeks. I stick all of this down in writing, and pass it on, but am a little concerned about the different stories emerging out of the estate agents office (healthy or unhealthy scepticism?)

Off I go to the Land Registry - £3 and I have the title deeds, which list the lending bank, who are now presumably the owners (the original owner is still listed on the deeds). As I suspect my offer won't be passed on, and indeed, suspect the EA of some dodgy dealing, is it worth me contacting the bank to pass on the offer directly, and if so, who do I speak to in which department? Any help greatly appreciated.

Maybe the first sale did genuinely fall through - perhaps they couldn't get a mortgage.

Repossessions need to exchange in 28 days so let them know that you can complete in that time instead of 8 weeks!

They will look at all the offers and eliminate any that are not in a position to proceed. Of the remaining offers if they really are identical in price and ability to proceed then they may go with the first offer (datewise) and if they are not identical in price they will go with the highest. If you really want the property you need to decide the maximum price you are prepared to pay bearing in mind that it then needs to be valued up ok by your mortgage lender. Always offer in odd multiples to increase your chances for example if I wanted a house that was good value at £100000 I would assume that someone else might offer £100100 and so I would offer £100155.

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an order for possession is just that...possession from the owner.

the sale proceeds belong to the owner, except the first charge (bank) will have in the possession order the right to first grab of any cash. anything left over goes to any other charge holders (ocean finance etc), the balance to the owner. If there is a shortfall, and the usually is, the owner still owes, but the new debt is unsecured.

So in the case of repossession, is the vendor the bank as they hold the first charge? I'm trying to work out whether it's sensible idea to send a copy of my offer to the vendor, or whether that's just a waste of time?

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So in the case of repossession, is the vendor the bank as they hold the first charge? I'm trying to work out whether it's sensible idea to send a copy of my offer to the vendor, or whether that's just a waste of time?

the lender in possession is the one who give the instruction for sale I beleive. who you contact if you suspect fraud at the EA I have no idea Im afraid.

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But it's the bank that's selling it.

Yes it is the bank that makes the final decision. However they are unlikely to speak to you - Data Protection etc. - let's face it the EA's not even supposed to tell you it's a repossession despite the giveaway crime scene tape!!

If you really do believe that they are giving preferential treatment (this is illegal) then all you can do is ask them to confirm in writing that your offer has been submitted. Is it a corporate EA?

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Maybe the first sale did genuinely fall through - perhaps they couldn't get a mortgage.

Repossessions need to exchange in 28 days so let them know that you can complete in that time instead of 8 weeks!

They will look at all the offers and eliminate any that are not in a position to proceed. Of the remaining offers if they really are identical in price and ability to proceed then they may go with the first offer (datewise) and if they are not identical in price they will go with the highest. If you really want the property you need to decide the maximum price you are prepared to pay bearing in mind that it then needs to be valued up ok by your mortgage lender. Always offer in odd multiples to increase your chances for example if I wanted a house that was good value at £100000 I would assume that someone else might offer £100100 and so I would offer £100155.

I knew that you had to complete with 28 days at auction, but wasn't aware that this also applied to repos sold by EAs - very useful, thanks! Our offer was at the top of a stamp duty bracket, which is why I assume everybody else, if there are other offers, has offered the same amount.

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I knew that you had to complete with 28 days at auction, but wasn't aware that this also applied to repos sold by EAs - very useful, thanks! Our offer was at the top of a stamp duty bracket, which is why I assume everybody else, if there are other offers, has offered the same amount.

Ah right. Tough call!

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the lender in possession is the one who give the instruction for sale I beleive. who you contact if you suspect fraud at the EA I have no idea Im afraid.

I'm not sure there's fraud going on. It's just something doesn't smell quite right (and I'm not just talking about the bucket of builder's pee we found in a cupboard during the viewing...) Thanks for the info, though.

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your being too keen....chill dont worry whats the rush, plenty of others now and in the future. Let them chase you, if you are the only offer they need you. If there are other offers it isnt worth it. Treat it like ebay

Edited by moosetea

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Maybe the first sale did genuinely fall through - perhaps they couldn't get a mortgage.

Yes, there's a world of difference between saying to Damian "I love it, I'll offer eleventy million pounds for it" before he drives away in his Audi A6 with enough grease in his hair to fry a fish, and then persuading a financial institution to actually lend you that money.

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It is a fairly big local, but not nationwide, chain. Does this normally make a difference?

The more reputable EA's (NAEA and OFT) generally uphold the law.

Not only do offers have to be confirmed in writing to the seller but now they have to be confirmed in writing to the buyer too.

Compliance with this generally gives you an idea of how switched on they are.

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I've put the offer in writing and will check with the EA next week that it's been passed on. I haven't instucted a solicitor yet, so will take burnt before's advice on that one. Then I guess it's down to a (chilled) mexican stand-off (for a maximum of 28 days). Lots of useful advice and combined knowlege, folks - without turning too MSE, thanks muchly.

HUGZ

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Guest KingCharles1st
Yes, there's a world of difference between saying to Damian "I love it, I'll offer eleventy million pounds for it" before he drives away in his Audi A6 with enough grease in his hair to fry a fish, and then persuading a financial institution to actually lend you that money.

:lol::lol::lol:

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The bank is never the owner....unless they pay the owner for it.
actually, most residential mortgages are legal mortgages, not equitable ones - as such, the bank IS (or could be) the legal owner......

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actually, most residential mortgages are legal mortgages, not equitable ones - as such, the bank IS (or could be) the legal owner......

The bank will sell as proprietor of the charge exercising their power of sale. The original borrowers will remain as proprietors of the land until the sale is registered.

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I've been keeping an eye on a repossesed property round my neck of the woods - advertised at 2003 price, would suit me well and I know I'm probably going to take a minor hit, but I can handle that.

I've been calling the agent on a weekly basis for the last 6 weeks to find out what's happening with it - the first guy I spoke to told me it was going to complete the following week. Seven days elapsed and it's still on the website, so I called again, and apparently there are a few hitches but the sale is definitely still going through.

2 weeks later, the house is still advertised on their site. I call again and speak to a different bloke, am told it's definitely on the market and when would I like to view? Post-viewing, I put an offer in at £15k under the already reduced advertised price, upon which am told there are "4 or 5 offers on the table, all at the same amount as yours, but we are taking bids". I'm not prepared to up the offer, but we are FTBs, have a healthy deposit, have an agreement in principle and are able to complete in 8 weeks. I stick all of this down in writing, and pass it on, but am a little concerned about the different stories emerging out of the estate agents office (healthy or unhealthy scepticism?)

Off I go to the Land Registry - £3 and I have the title deeds, which list the lending bank, who are now presumably the owners (the original owner is still listed on the deeds). As I suspect my offer won't be passed on, and indeed, suspect the EA of some dodgy dealing, is it worth me contacting the bank to pass on the offer directly, and if so, who do I speak to in which department? Any help greatly appreciated.

A similar thing happened to me. I was a cash buyer, no mortgage required. I saw a reposessed property. Rang the agent to be told it was under offer. I asked if contracts had been exchanged. Was told no, but expected to exchange within days. Even so the agent would not arrange a viewing. Did the same thing as you, paid the Land Registry fee, found out the lender, and rang their arrears department. Told them the story and that I was a cash buyer. They took my details and phone number. A few minutes later, I had a call from the EA and a viewing was arranged. As it turned out it looked better in the photographs so suggested the agents snap the buyers hand off before they get cold feet.

Similar incidents have happened to me four times. The motto : EA's lie, cheat and scam, and you have to go over their heads at times. Good Luck

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