Jump to content
House Price Crash Forum
Sign in to follow this  
quantinghome

Repossession

Recommended Posts

Am I right in thinking that if a house is repossessed and ends up being sold for less than the outstanding debt, the ex-owner still owes the bank the difference?

Thankfully I'm not in that situation. We're sitting on the sidelines renting and waiting for things to run their course. I suppose a little part of me wonders about the ethics of making low offers on repos if the above is true.

Share this post


Link to post
Share on other sites

Of course if you buy a house that has been repossessed, there is the danger the previous owner (occupier) will come around and smash your face in for "taking their house" from them. This happened to someone I know in the early 90's - not nice at all.

Share this post


Link to post
Share on other sites
Guest happy?
Yes, you still owe the money you borrowed. Repossessions are auctioned.

Repossesed property is disposed of by the mortgagee for the highest price they can get in the prevailing market - auction is one way, but a property could easily be sold by an estate agent - "no chain ahead" doesn't always mean someone's died/emigrated...

Share this post


Link to post
Share on other sites

Its a Possessed property, you will owe the capital outstanding and interest, plus the costs of sale, estate agents fees, advertising etc etc.

The bank will deduct the cash gained in the sale but will keep charging interest on theremaining cash balance.

Not pretty, but you can usually come to agreement with the wolves that chase you to settle it.

Edited by Bloo Loo

Share this post


Link to post
Share on other sites

So if you're lumbered with a monster N.E. debt for the rest of time, eating all your income with no end in sight, even though your house has been auctioned off by the lender, why not torch it? At least you'd get free accomm. for quite a few years and no other fCker would be snapping it up "cheap" and the lender would get the insurance.

Yeah madness I know, but if we're sure of one thing on here, it's that property does strange things to the british psyche.

Share this post


Link to post
Share on other sites
So if you're lumbered with a monster N.E. debt for the rest of time, eating all your income with no end in sight, even though your house has been auctioned off by the lender, why not torch it? At least you'd get free accomm. for quite a few years and no other fCker would be snapping it up "cheap" and the lender would get the insurance.

Yeah madness I know, but if we're sure of one thing on here, it's that property does strange things to the british psyche.

Yeah I understand you know about the prison bit but I think most insurers might take a dim view of someone torching the banks house and might not cough up the insurance money.

Edited because I just thought of something; as the Perrins are in rented accomodation ATM it surprised me to learn recently that buildings insurance these days is generally less than the value of the house. e.g. It costs less to rebuild a house than to buy it.

Edited by ReggiePerrin

Share this post


Link to post
Share on other sites
Of course if you buy a house that has been repossessed, there is the danger the previous owner (occupier) will come around and smash your face in for "taking their house" from them. This happened to someone I know in the early 90's - not nice at all.

Something similar happened to a mate of mine in the early 1990s. The bloke came round, banging on the door, shouting abuse on a few occasions, when he was drunk. In the end he kicked the door in, so my friend hit him over the head with a hammer. He didn't come round any more after that.

F*cking loser.

I mean, if you buy a house, it isn't your fault what mess the previous owner got into, is it?

Share this post


Link to post
Share on other sites
why not torch it? At least you'd get free accomm.

Indeed, and with the accommodation comes a nice new 'boyfriend' with personal hygiene issues who will happily 'redimension' your bottom for you. :o

I think I'd rather pay the interest. :rolleyes:

Share this post


Link to post
Share on other sites
Edited because I just thought of something; as the Perrins are in rented accomodation ATM it surprised me to learn recently that buildings insurance these days is generally less than the value of the house. e.g. It costs less to rebuild a house than to buy it.

Well, you don't have to re-build the land ;)

Share this post


Link to post
Share on other sites
Of course if you buy a house that has been repossessed, there is the danger the previous owner (occupier) will come around and smash your face in for "taking their house" from them. This happened to someone I know in the early 90's - not nice at all.

A very good friend of mine bought 2 houses at auction during the last crash, he must of had them only a month or so and suddenly sold them on even cheaper than he had paid at auction.

Never ever told me the reason why he sold so quickly and at a loss, but I have a good idea.

Repos can get nasty, and with the coming tide you would be a brave man to just dive in without doing the research first

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 295 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.