Buying A Repossession

[Barb E Dahl]

I've never bought a repossession before but seriously considering it. We plan to go in low, and will have to get a valuation done quickly in order to get things sorted within 28 days. We've been warned that someone could come in at the last minute and offer more. Unfortuanately we'll have to get a mortgage. My question is if the valuer says the property is worth X which is basically what we've offered, then someone offers an additional £5000 ...what happens? Will we have to fund the difference out of our own pockets or will the mortgage company take into consideration that it's a repossessed property and might be undervalued OR will the valuer likely value it higher because it's a repossession?

The property is worth more in the current market in our opinion but we're after a bargain to cushion us if prices do drop a lot in the future.

Any tips and advice appreciated.

[200p]

Set a price and stick to it. If you are lucky, the agent will update the rightmove listing to:

Acme estate agents are now in receipt of an offer for the sum of £xxx,xxx for xxxxxx. Anyone wishing to place an offer on this property should contact Acme Estate Agents before exchange of contracts.

If not lucky i.e us, they won't and it will be sold.

If someone bids +£5000 more then you must increase your offer or lose. I do not know if the EA can use "bids off the wall".

They'll be plenty of more repos to come.

[Boon]

If you're buying a repossession with a mortgage, the odds are stacked against you. You need to commit money to get the mortgage valuation survey done - and if you have to then raise your offer later on because of more interest, then you'll either have to plead with the surveyor to change their valuation (it will never have been more than the original purchase amount), or pay again for another valuation.

It would be better in that case to just top up the mortgage with cash.

[tim123]

I've never bought a repossession before but seriously considering it. We plan to go in low, and will have to get a valuation done quickly in order to get things sorted within 28 days. We've been warned that someone could come in at the last minute and offer more. Unfortuanately we'll have to get a mortgage. My question is if the valuer says the property is worth X which is basically what we've offered, then someone offers an additional £5000 ...what happens? Will we have to fund the difference out of our own pockets or will the mortgage company take into consideration that it's a repossessed property and might be undervalued OR will the valuer likely value it higher because it's a repossession?

The property is worth more in the current market in our opinion but we're after a bargain to cushion us if prices do drop a lot in the future.

Any tips and advice appreciated.

I think you're putting the cart before the horse.

Has the EA given any indication that your "low" offer will even be considered?

tim

[Si1]

The property is worth more in the current market in our opinion but we're after a bargain to cushion us if prices do drop a lot in the future.

eh?

[Pent Up]

eh?

If the property is worth more in the current Market then it will sell for more than you bid. If not it's not worth more.

[caparn]

I heard that banks are now starting to market repossessions as normal houses i.e. market them with estate agents. This is because the people who the houses are repossessed from have been complaining that the price their house receives is less than the market rate. So they are becoming even more in debt to the bank than they should be. Which sounds a reasonable way for the banks to proceed.