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anonguest

Repossessions And Auctions

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Have come across a house being sold that I am informed is a repossession.

The house is being marketed by a local estate agent.

Yet curiously, to me, the property is not being sold on behalf of the bank/mortgage lender, but some other intermediary company. No further info than that. Not even clear who has determined/decided on the marketing price.

Specifically of curiosity to me is that, according to propertysnake, the house first came on to the market a year ago. Firstly at £290K then de-listed, then listed again after a short duration at lower price of £260K, then de-listed and re-listed again after a pause now at £220K.

EA tells me he has several interested purchasers now, has de-listed it and has picked the 'best' potential buyer to start the ball rolling - they have 28 days to exchange or it gets re-marketed again.

Question! I have always worked on the assumption that once a lender takes the big step to finally repossess they allow a fixed amount of time to achieve a sale through conventional means (i.e an EA), to achieve a good price. Only then if that fails will they put it onto the auction market. It just seems that, intermediary company aside, that an awful long time is being granted to trying to sell via the EA.

Should this ring any 'alarm' bells? Could something fishy be going on here? I am thinking in terms of whether there might be some vested interest by the EA, and if so are they legally required to divulge any such personal interests?

Edited by anonguest

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I'm sure Zanu has pressured the banks to hold off as long as poss

before going down the auction route to prevent a tidal wave of houses

hitting the market at the same time

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I'm sure Zanu has pressured the banks to hold off as long as poss

before going down the auction route to prevent a tidal wave of houses

hitting the market at the same time

Thats a separate issue (which I agree has almost certainly been happening).

In this case the house HAS already been repossessed. The question is that it seems that an awfully long time is being allowed to get it sold........ is this normal? or is there something more than meets the eye?

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I found out today that Ward and Partners have closed down their auction division. They used to be fairly large and their only competitor in Kent was Clive Emson. I bought a large house from the back in 1999.

The guy who used to run it retired and they decided it was not viable to continue it as a business.

http://www.wardandpartners.co.uk/auction/

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....

Should this ring any 'alarm' bells? Could something fishy be going on here? I am thinking in terms of whether there might be some vested interest by the EA, and if so are they legally required to divulge any such personal interests?

No.

If you owned 200 properties would you auction them all off this week or try to sell them rather more slowly at a better price? Of course, the slow route would mean a loss of interest on the money, so you might think auction a better route if interest rates were high.....

All estate agents have a vested interest in getting the maximum price - its the commission cheque :D

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No.

If you owned 200 properties would you auction them all off this week or try to sell them rather more slowly at a better price? Of course, the slow route would mean a loss of interest on the money, so you might think auction a better route if interest rates were high.....

All estate agents have a vested interest in getting the maximum price - its the commission cheque :D

I understand that aspect.

My question was it seemed, to me, that over a year with the EA trying to sell it seems a long time. I would have assumed that the bank would allow a set time (less than this!) before throwing in the towel and auctioning it so that it at least gets some capital back on its books?

There is also the question of what/who exactly is the 'intermediary' company? If they are a subsidiary of the bank/building society, but still technically a separate entity, then all well and good. BUT, if not, then whats their 'interest'? How do they make money from this? in addition to the EA?

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Mightn't the intermediate be a vulture company, picking up must-sell-quick properties at bargain price then re-marketing them with no hurry for a best price?

Agreed. Thats the only scenario I also can think of.

One thing that struck me was that the original asking price was, given the house condition, not exactly good value when it first went on the market - compared to the asking prices of identical houses in that street/immediate locality at the time.

They have now dropped the price in ONE year from 290K to under 220K. BUT one assumes they will still be making a profit? Which implies they must have taken it off the bank at even cheaper price back then!

So, do I hold out a wee bit longer? Hmmmmmm.

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There was a thread started on August 9th entitled 'Banks buying back distressed properties through shell companies'.

Is there any sign this could be an example of the above?

Sounds the most likely senario.

Off balance sheet accounting by the bank, backed up by the tax payer.

Of course, if you or I tried this it would be called fraud! :angry:

Edited by muggle

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Sounds the most likely senario.

Off balance sheet accounting by the bank, backed up by the tax payer.

Of course, if you or I tried this it would be called fraud! :angry:

I'm not sure this is the same thing - unless the actual bank is one of the supposed parties the EA claims has also submitted offers on the house?!

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Do you know WHEN it was repossessed? Is it possible that the original prices which you thought quite steep were set by a desperate owner trying to sell to avoid repossession?

Good point. Its not impossible that propertysnake is indeed showing the initial asking price by the then desperate sellers, showing it being delisted and then relisted at a lower price - presumably already repossessed by then.

I am tempted to knock on the neigbours door to ask how long its been vacant - as the EA was, surprisingly, uncertain about this when asked.

Edited by anonguest

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Yet curiously, to me, the property is not being sold on behalf of the bank/mortgage lender, but some other intermediary company. No further info than that. Not even clear who has determined/decided on the marketing price.

If you can get the name of the intermediary company we can start doing some digging. I suspect it will be a paper chase. My suspicion is that the banks are hoarding cash offshore, and that something is "going on" to hide the real losses.

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There are 3 properties in my area that I have looked at, both repo's....They have been on market for 2 years! Price has dropped but still not shifting...Also I was talking to a woman in one of the properties, she had been made redundant couldn't pay mortgage and her bank is letting her stay there until its been sold...

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They have now dropped the price in ONE year from 290K to under 220K. BUT one assumes they will still be making a profit?

I don't see any reason at all for making this assumption.

If the owner could have sold the house for 220K and had enough to pay off the mortgage, he would have been better off doing so.

tim

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