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Lazybones

Process For A Reposession Sale

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Hi all,

What is the process for a repossession to be sold on?

I have seen a number of repossessions come onto the market via local estate agents, when an offer is received they put a Notice of Offer in the local paper, what happens next? If someone makes a higher offer on or before the closing date does this offer need to go-to a further notice or is it the case that the highest offer wins? Can an offer be withdrawn or reduced say based on a survey? Does the person who made the original offer get the opportunity to increase their offer? Is there even a legal/official/best practise for this?

How much under the estate agents valuation do you believe is a reasonable starting point. I saw one house valued at 334K the EA said they have had offers between 280K and 320K all of which have been rejected but believe they will receive an offer this week that will go to notice?

thanks

lazybones

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Hi all,

What is the process for a repossession to be sold on?

I have seen a number of repossessions come onto the market via local estate agents, when an offer is received they put a Notice of Offer in the local paper, what happens next? If someone makes a higher offer on or before the closing date does this offer need to go-to a further notice or is it the case that the highest offer wins? Can an offer be withdrawn or reduced say based on a survey? Does the person who made the original offer get the opportunity to increase their offer? Is there even a legal/official/best practise for this?

How much under the estate agents valuation do you believe is a reasonable starting point. I saw one house valued at 334K the EA said they have had offers between 280K and 320K all of which have been rejected but believe they will receive an offer this week that will go to notice?

thanks

lazybones

Anybody?

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The three rules of making an offer:

1) Never believe what an estate agent says

2) Offer less that you think is worth

3) Never believe what an estate agent says

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Hi all,

What is the process for a repossession to be sold on?

I have seen a number of repossessions come onto the market via local estate agents, when an offer is received they put a Notice of Offer in the local paper, what happens next? If someone makes a higher offer on or before the closing date does this offer need to go-to a further notice or is it the case that the highest offer wins? Can an offer be withdrawn or reduced say based on a survey? Does the person who made the original offer get the opportunity to increase their offer? Is there even a legal/official/best practise for this?

How much under the estate agents valuation do you believe is a reasonable starting point. I saw one house valued at 334K the EA said they have had offers between 280K and 320K all of which have been rejected but believe they will receive an offer this week that will go to notice?

thanks

lazybones

AFAIK repossessions are subject to the same offer rules as any other house sale through an EA. Offers can be withdrawn at anytime and for any reason up until exchange of contracts, after which it will be put back onto the market once again.

All offers that are accepted are put in the paper to ensure the lender is obtaining the best price on behalf of the defaulting borrower. If someone else then offers more, the whole process will start again with the new buyer.

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Hi all,

What is the process for a repossession to be sold on?

I have seen a number of repossessions come onto the market via local estate agents, when an offer is received they put a Notice of Offer in the local paper, what happens next? If someone makes a higher offer on or before the closing date does this offer need to go-to a further notice or is it the case that the highest offer wins? Can an offer be withdrawn or reduced say based on a survey? Does the person who made the original offer get the opportunity to increase their offer? Is there even a legal/official/best practise for this?

How much under the estate agents valuation do you believe is a reasonable starting point. I saw one house valued at 334K the EA said they have had offers between 280K and 320K all of which have been rejected but believe they will receive an offer this week that will go to notice?

thanks

lazybones

The estate agents, solicitors, retired planning officers and developers all belong to the same club, be it the lodge or Rotary club. There may be two EAs involved. One advising the lender. It is not unusual for a member of the planning committee to be a member also.

The agent advising the lender will have recommended that earlier offers were insufficient or that there could be problems with finance etc.

When a current planning officer (who was apprentice to the retired one) has green lighted the redevelopment, the developer puts in a cash offer. The EA advising the lender recommends acceptance. The notice is published with a very short time scale. Subsequent offers are set aside - unknown purchaser - can't be sure about funding etc.

The deal goes through. Everybody at the club gets a bit richer apart from the planning officer. He has to wait until he retires and sets up as a planning consultant. However, he is wined and dined well in the interim.

The developer is sometimes a limited company and the club members' wives are shareholders.

p-o-p

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There isn't a requirement in law that an offer be advertised in the paper. The requirement is that the sale is conducted in a proper way and that the price realised is the best price reasonably obtainable on the day of sale.

The leading case on the matter is Silven Properties. Google it if you're interested.

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I believe there is also a requirement to be able to go from acceptance of offer to completion and exchange in 28 days.

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