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FreeFall

It Has Started.....

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Ive just seen a repo auction on rightmove a few miles from me (an area that I've been following).

Guide price is set at about 50k below "normal" prices. Guide price 160k (bought for 150k in 2003), and road ceiling price around the 215k mark.

here

Shows that all the banks want is their money back. They don't care about the former "owners"

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Thanks for posting this freefall.

Obviously 1 example doesn't make a trend...

HOWEVER

It will be interesting to see if the banks suddenly shed their "touchy feely" mood when the going gets tough and turf the OO's out onto the street for not keeping up payments...

JUST LIKE LAST TIME THEN!

:lol::lol::lol:

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Ive just seen a repo auction on rightmove a few miles from me (an area that I've been following).

Guide price is set at about 50k below "normal" prices. Guide price 160k (bought for 150k in 2003), and road ceiling price around the 215k mark.

here

Shows that all the banks want is their money back. They don't care about the former "owners"

The guide price is always set that low to lure people into the auction it bears no relation to what the house will sell for - but on the other hand there could be a bargain to be had

Edited by *sparkle*

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When selling a repossessed property building societies have a duty to find the " best price which can be reasonably obtained" whilst banks have a " duty of care" to a borrower. Also the FSA mortgage rules say that all lenders must obtain the "best price that might reasonably be paid". It is possible to dispute the amount still being claimed by the lender later, if you can show that the house was sold for substantially below the proper market price taking into account the market conditions at the time of sale. Or if the house was not marketed in a manner to obtain a good sale price.

Repossession agents now tend to market a repo through an e.agent first and then only if it fails to sell should they take it to auction. Though I'm not sure if these 'rules' are followed by the less reputable secondary lenders such as Ocean ? Maybe someone knows?

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When selling a repossessed property building societies have a duty to find the " best price which can be reasonably obtained" whilst banks have a " duty of care" to a borrower. Also the FSA mortgage rules say that all lenders must obtain the "best price that might reasonably be paid". It is possible to dispute the amount still being claimed by the lender later, if you can show that the house was sold for substantially below the proper market price taking into account the market conditions at the time of sale. Or if the house was not marketed in a manner to obtain a good sale price.

Repossession agents now tend to market a repo through an e.agent first and then only if it fails to sell should they take it to auction. Though I'm not sure if these 'rules' are followed by the less reputable secondary lenders such as Ocean ? Maybe someone knows?

Banks won't be allowed sell houses for £10,000 to their mates like they did in the last crash due to the above and also due to the fact that people are more aware this time and know they banks have to get the best possible price. The bank are also very much aware that anyone who is repossed now will more than likely just go bankrupt and they won't be able to get the difference back so they need to make their money on the sale of the house

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When selling a repossessed property building societies have a duty to find the " best price which can be reasonably obtained" whilst banks have a " duty of care" to a borrower. Also the FSA mortgage rules say that all lenders must obtain the "best price that might reasonably be paid". It is possible to dispute the amount still being claimed by the lender later, if you can show that the house was sold for substantially below the proper market price taking into account the market conditions at the time of sale. Or if the house was not marketed in a manner to obtain a good sale price.

Thats why they auction it. By auctioning they are achieving market value. They have no obligation whatsoever to the mortgagee apart from being seen to get the best price available. Thats what an auction does. Gets market value, not overinflated EA value. They advertise both in the papers and online.

Repossession agents now tend to market a repo through an e.agent first and then only if it fails to sell should they take it to auction. Though I'm not sure if these 'rules' are followed by the less reputable secondary lenders such as Ocean ? Maybe someone knows?

Thats simply not true. The bank wants there money back...period. If there is anything left over then so be it. But they are not working for your percentage. If the bank wants they can simply place it straight into auction. The only reason they have used EA is that houses have been selling quickly. Maybe more quickly than waiting a few months for an auction. Now that selling times are on the up banks will start using auctions more.

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Hmmmm, interesting. Im not one to get carried away with 'oh my god the crash has started' at the smallest scrap of negative news, but I have noticed quite a few properties going on auction through rightmove, this first started about 2 months ago, but is now becoming more regular (search terms: M1 postcode, 0.5 mile radius). Im not sure if the reason for this is reposessions, a new strategy from rightmove or LL's in a hurry to sell their props, any idea's?

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Thats why they auction it. By auctioning they are achieving market value. They have no obligation whatsoever to the mortgagee apart from being seen to get the best price available. Thats what an auction does. Gets market value, not overinflated EA value. They advertise both in the papers and online.

Thats simply not true. The bank wants there money back...period. If there is anything left over then so be it. But they are not working for your percentage. If the bank wants they can simply place it straight into auction. The only reason they have used EA is that houses have been selling quickly. Maybe more quickly than waiting a few months for an auction. Now that selling times are on the up banks will start using auctions more.

Sorry, I disagree!

Hmmmm, interesting. Im not one to get carried away with 'oh my god the crash has started' at the smallest scrap of negative news, but I have noticed quite a few properties going on auction through rightmove, this first started about 2 months ago, but is now becoming more regular (search terms: M1 postcode, 0.5 mile radius). Im not sure if the reason for this is reposessions, a new strategy from rightmove or LL's in a hurry to sell their props, any idea's?

If the auctioneer is also an EA who already pays to use Rightmove then, as far as I'm aware, it costs him no more to put the auction propeerty on Rightmove. If he's not then he would have to pay or join the Rightmove club!

If repo's are'nt selling as quickly through the EA's then more and more will filter through to auction I guess.

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Thats why they auction it. By auctioning they are achieving market value. They have no obligation whatsoever to the mortgagee apart from being seen to get the best price available. Thats what an auction does. Gets market value, not overinflated EA value. They advertise both in the papers and online.

Thats simply not true. The bank wants there money back...period. If there is anything left over then so be it. But they are not working for your percentage. If the bank wants they can simply place it straight into auction. The only reason they have used EA is that houses have been selling quickly. Maybe more quickly than waiting a few months for an auction. Now that selling times are on the up banks will start using auctions more.

This isn't true the FSA rule have changed they do have an obligation to the mortgagee and almost all repossessions are now done through an EA they are also obliged to keep the mortgagee informed of what is happening

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Sorry, I disagree!

If the auctioneer is also an EA who already pays to use Rightmove then, as far as I'm aware, it costs him no more to put the auction propeerty on Rightmove. If he's not then he would have to pay or join the Rightmove club!

If repo's are'nt selling as quickly through the EA's then more and more will filter through to auction I guess.

Yes, its just something that i've noticeed only of late, and i have regularly used rightmove for the last year or so.I wondered if it was a change of marketing policy by the auctioneers or the manifestation of the growth in repossessions. Anyone know if repossession stats are divided by region? I have a sneaking suspicion that some area's of the North west are going to get hit hard.

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This isn't true the FSA rule have changed they do have an obligation to the mortgagee and almost all repossessions are now done through an EA they are also obliged to keep the mortgagee informed of what is happening

Since when did banks adhere to the FSA guidelines :lol::lol::lol::lol:

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Now this is interesting. A repossession where the house was bought for 150K (presumably with a 5% deposit) and is expected to raise 160K. Thats 10K profit. Just let the bank make your money for you!

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  • 302 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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