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lostinrent

Have You Been Repossessed ?

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Interesting thread on singing pig on how to buy BMV.

The aim is to catch a seller in financial distress, offer to pay off his loans by buying his property below market price and then renting the property back to them.

Has anyone been through the repo experience ?

What are the downsides a persons credit history if they get reposessed ?

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Interesting thread on singing pig on how to buy BMV.

The aim is to catch a seller in financial distress, offer to pay off his loans by buying his property below market price and then renting the property back to them.

Has anyone been through the repo experience ?

What are the downsides a persons credit history if they get reposessed ?

"What are the downsides a persons credit history if they get reposessed ?"

The usual, i.e. basically the worst sort of credit rating you can get.

Can't see the benefit of BTL buying bellow market value and renting back to be honest, I think it's a very small market, particuarly when you are looking at falling prices. The only scenario would be when somebody had significany equity in the property so as not to fall in negative equity.

Even in that scenario the person buying would need to be able to pay the rent which if they are about to be repossesd are unlikely to be able to do on account of them not keeping up on mortgage payments. This would mean the BTL landlord would only be covering the mortgage and not making any profit.

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Interesting thread on singing pig on how to buy BMV.

The aim is to catch a seller in financial distress, offer to pay off his loans by buying his property below market price and then renting the property back to them.

Sounds like a superb business relationship. If prices go down below the BMV price you are screwed and have a tenant with a poor history of paying bills.

If prices go up you have bitter tenants who are basically bankrupt and none too keen on keeping your "investment" in good order.

Hmmmmm.........

Edited by Sledgehead

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I've just had a head huricane!

Imagine this advert:

"Strugling with your finances? Facing bankruptcy? Loosing your home? Don't know where you will live?

-

-

-

well, "Jason's magic move" is here. We'll buy your home off and allow you to live there... and YOU choose how much rent you want to pay!!"

So, let them choose the rent they want to pay allowing you to adjust your offer to buy their house so you make your set yeild. Guarantee to let them rent for, say, 5 years then sell.

I.e. If they wanted to pay £5k a year in rent, you would offer £62.5k giving you an 8% yield!

I know the person would need enough equity to sell so low, but I'm sure there are some thicko's out there!

I'm only having a laugh really...

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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