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johnygee

Repo's Pricing

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HonestEA if your there,been reading your posts on pricing repo's etc .

i have my eye on aplace is only worth at the moment 270k, has been on since last april 460k then 425k now 395k just been repo'ed now on for 355k still its 85k over value. do the mortgagees need to be seen to be trying to retrieve the mortgage outstanding, or do they just go straight on at what they assume to be market value, they do know its only worth 275k because whoever was looking around from ea said they could get it for 275k. whats your thoughts

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I was wondering this as well. Are banks prepared to take whatever they can get to shift it quickly or are they prepared to hold out?

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I was wondering this as well. Are banks prepared to take whatever they can get to shift it quickly or are they prepared to hold out?

The question that has to asked is - how can you measure that the current value is £270K?

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I saw a repo advertised for £294,000 recently and rang the agent. We didn't go and see it. The agent called the following week and said that had been "a great deal of interest" in it (and after only 3 weeks on the market), asked for "best and final offers" to be submitted to them that week.

The agent kept calling trying to talk us into going to see the house and making an offer at the asking price. We weren't interested but someone was - as it's gone "under offer" on their website. No idea what price.

It did seem very strange to "push" people into "best and final" offers so quickly.

My Aussie neighbours went to see a Repo in London. It's still on the agents website. The agent said that if it didn't get an offer that the bank would accept, then it goes to auction. My neighbours didn't make an offer in the end, and of course, the agent wouldn't tell them what they expected the bank to accept.

Edited by Flopsy

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HonestEA if your there,been reading your posts on pricing repo's etc .

i have my eye on aplace is only worth at the moment 270k, has been on since last april 460k then 425k now 395k just been repo'ed now on for 355k still its 85k over value. do the mortgagees need to be seen to be trying to retrieve the mortgage outstanding, or do they just go straight on at what they assume to be market value, they do know its only worth 275k because whoever was looking around from ea said they could get it for 275k. whats your thoughts

The mortgagees need to be able to prove that they have fully and fairly exposed the property to the open market and be satisfied that any offer they propose to accept is the best offer obtainable in the current market. It is the mortgagees own business decision if they take a loss or not, there is no obligation to necessarily cover the outstanding mortgage.

As mentioned before, the mortgagees do not know the prices at local level. They will get 2 chartered surveyors and a local EA to submit valuations and then market for usually a minimum of 28 days at the highest valuation of the 3 before then considering monthly reductions of around 5% (sometimes 10% these days) until it sells or is put to auction. In your example, one of the surveyors or the EA must have advised the 355K asking price, but they will progressively reduce it over time until it finds its market value. The EA may well have advised the lower figure and therefore might feel confident that he can persuade the mortgagees to take £275K , particularly if the EA is prepared to sign the Best Price Certificate which we all have to do when we advise a mortgagee to accept an offer substantially below prior valuations.

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this property has always had a history of being priced 10%lower than the other properties on the road,so the 275k sounds about right it must be being marketed at 355k due to the mortgage. it has been on the market before with this same estate agent at the 10%lower price

the other problem with the property is it is a detached property ,crappy design, no style, very low ceilings and no garden at the rear apart from a strip to the left of the property 30foot x 9foot

it has always had a history of taking forever to sell .before the couple who have just had it repo'ed bought it it was on the market for 4years

my situation is that we have bought a plot of land 40foot x 30foot which fits exactly into were you would expect this houses

garden to be, right next to there strip .making the new garden 39foot wide

everybody says that the house wont sell without the garden as history repeats itself what does Honest EA think i should do

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They can take a lower than mortgage offer then hound the mortgagee for the difference, I bet the recovery levels are low for this type of debt.

When you've just had your house repo'd bankruptcy doesn't seem such a major step. Completeley debt-free in a day!

I would imagine that recovery levels of these debts will be close to zero!

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When you've just had your house repo'd bankruptcy doesn't seem such a major step. Completeley debt-free in a day!

I would imagine that recovery levels of these debts will be close to zero!

i was a victim of the early nineties owed the bank 55k said i had no cash offered them 1500 sent cheque saying if you accept this cheque and cash it it will be seen as full and final settlement guess what! they banked it the same will happen this time around they cant get blood from a stone

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This seems the best place to put our story - as apparently I can't start threads.

We've seen a 2 bed bungalow repo just down the road. It's a repo in a very poor state, and it was advertised as POA. When the estate agent turned up, they gave us a sheet with 189K on it, at which we blanched. However, with minimal poking - and not in their client's interests - they told us that really they valued it at about 165-170 in its current state and that the repo company (SpicerHaart, to name and shame) were being totally unrealistic. The property had, at the time, been repossessed for over a month.

We got builders in to give some quotes, and thought we'd test the waters with 140,000. We were told that there was no point putting that order forward because the company had already rejected an offer of 160,000.

Now, we like the house, so we umm'ed and ahh'ed. Basically, we came to the conclusion that if there IS another interested party out there then there's no point trying to force them to take 140,000 if that 160,000 client is waiting for the repo to appear in the local paper.

So we've made an offer of 165. They came back with a counter offer of 180, which was at least negotiation, but we put our foot down - in fact, at 165 we're having doubts.

Here comes the question. IF, after going through the week's compulsory advertising, and finally grudgingly taking our offer, we decide that the property's not really worth our original offer, what would be the likely consequences if we decided to knock another 5K off at the last minute?

1) The company would say "Good day to you, sir!" and march off in a huff.

2) The company, having committed themselves financially, would charge us for advertising and solicitor's fees and then march off.

3) The company would grit their teeth, huff and splutter but eventually decide that a bird in the hand is worth two in the bush.

4) The company would give a bellicose laugh, shake our hand and congratulate us on our business acumen.

5) Other??

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johnny,there's a 'should I buy now' thread pinned on the main page.Are you looking for someone to blame if it goes tits up,because that's what it seems like.

if you've followed this site for a while you'll know it's a bad time to buy.end of story.

i am not looking to buy now waiting for history to repeat itself i.e not sell, no one interested , sometime next year,

not sold at auction then in my dream beg me to take it off there hands i want it at the lowest of the low prices

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the company will probably be stunned that someone was dumb enough not to go for more.

edit to say why on earth are you buying now?go to the pinned thread in the main forum

Thanks for the help.

Unfortunately, there are about five 3 bed houses in our town which are up for rent; most of them in ex-LA areas. My children go to the local school and nursery, and I work about five minutes away, so relocating's not really an option, which leaves either buying or being homeless

I'm as bearish as the next man, but in six months we're going to be kicked out of the place we're squatting in (wife's parents returning from Australia) and it's either pay rent or mortgage. Take the fact that we've qualified for an interest free loan of 60,000 for three years, which then goes to 1.75, and then capped at 3.75%, combined with the fact that rents are currently equivalent to mortgage payments anyway, then if we can take this 2 bed bungalow and turn it into a 3 bed family home in 6 months, we'll hopefully absorb a lot of HPC deficit.

I certainly wouldn't advise anyone to buy for an investment, but we just want somewhere to live, and somewhere to call our own.

So anyway, anyone else want to put their hat in the ring?

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Thanks for the help.

Unfortunately, there are about five 3 bed houses in our town which are up for rent; most of them in ex-LA areas. My children go to the local school and nursery, and I work about five minutes away, so relocating's not really an option, which leaves either buying or being homeless

I'm as bearish as the next man, but in six months we're going to be kicked out of the place we're squatting in (wife's parents returning from Australia) and it's either pay rent or mortgage. Take the fact that we've qualified for an interest free loan of 60,000 for three years, which then goes to 1.75, and then capped at 3.75%, combined with the fact that rents are currently equivalent to mortgage payments anyway, then if we can take this 2 bed bungalow and turn it into a 3 bed family home in 6 months, we'll hopefully absorb a lot of HPC deficit.

I certainly wouldn't advise anyone to buy for an investment, but we just want somewhere to live, and somewhere to call our own.

So anyway, anyone else want to put their hat in the ring?

Jonny - when you say renting is equivalent compared to mortgage payments, just curious as to what would be market rents for a similar house? For anyother buyer a rent of 825pm would be breakeven (yield or mortgage costs of 6%).

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They can take a lower than mortgage offer then hound the mortgagee for the difference, I bet the recovery levels are low for this type of debt.

Nah...you just wait 12 years until they've gotten themselves back on their feet and then sock it too them, together with exorbitant fees added on...people are still being hounded for repossession shortfalls from the last crash.

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we have bought a plot of land 40foot x 30foot which fits exactly into were you would expect this houses

garden to be, right next to there strip .making the new garden 39foot wide

everybody says that the house wont sell without the garden as history repeats itself what does Honest EA think i should do

...park a load of scrap cars on your piece of land? Should help the house price no end!

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Jonny - when you say renting is equivalent compared to mortgage payments, just curious as to what would be market rents for a similar house? For anyother buyer a rent of 825pm would be breakeven (yield or mortgage costs of 6%).

Well, what's equivalent? We'll be converting it from a 2 bed bungalow with huge loft to a three/4 bed with dining room, en suite to master, downstairs cloak, and bearing in mind the area I've got to say it's about 850-900.

We've got about 30K in the bank in various sources, but even with the Halifax regular saver we'd only be able to squirrel away 6000 for a return of 600 at their 10% rate. Not really worth it.

Plus, as I mentioned, there's not a lot of reasonable rents in the area anyway. Peek yourself if you like, but remember - areas may not be as nice as advertised.

http://www.rightmove.co.uk/search.rsp?lo_u...amp;s_tat=false

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...park a load of scrap cars on your piece of land? Should help the house price no end!

i have already had those thoughts more like acorrugated shed or some conifers unfortunately its landlocked and is difficult for me to gain access

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i have already had those thoughts more like acorrugated shed or some conifers unfortunately its landlocked and is difficult for me to gain access

.... a donkey ...... preferably a loud, smelly one.

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The mortgagees need to be able to prove that they have fully and fairly exposed the property to the open market and be satisfied that any offer they propose to accept is the best offer obtainable in the current market. It is the mortgagees own business decision if they take a loss or not, there is no obligation to necessarily cover the outstanding mortgage.

As mentioned before, the mortgagees do not know the prices at local level. They will get 2 chartered surveyors and a local EA to submit valuations and then market for usually a minimum of 28 days at the highest valuation of the 3 before then considering monthly reductions of around 5% (sometimes 10% these days) until it sells or is put to auction. In your example, one of the surveyors or the EA must have advised the 355K asking price, but they will progressively reduce it over time until it finds its market value. The EA may well have advised the lower figure and therefore might feel confident that he can persuade the mortgagees to take £275K , particularly if the EA is prepared to sign the Best Price Certificate which we all have to do when we advise a mortgagee to accept an offer substantially below prior valuations.

Have found and have enjoyed reading your posts HonestEA. Aspire to be similar myself being a small independent. Can you tell me what the route is into being instructed on repossessions or is it sewn up by the corporates? Many thanks

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There is a property on rightmove which is a repo, says 'previously listed at £114,000 but now offered at £84,500 for a quick sale!

It's worth about £30k judging from where it is though.

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Nah...you just wait 12 years until they've gotten themselves back on their feet and then sock it too them, together with exorbitant fees added on...people are still being hounded for repossession shortfalls from the last crash.

Where do you get your facts from - The Limitation Act and specialty debt law gives lenders exactly 12 years to collect the debt or piss off, If the mortgagee refused to acknowledge the debt in writing in those 12 years it would be written off, 6 years for other debts.

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The mortgagees need to be able to prove that they have fully and fairly exposed the property to the open market and be satisfied that any offer they propose to accept is the best offer obtainable in the current market. It is the mortgagees own business decision if they take a loss or not, there is no obligation to necessarily cover the outstanding mortgage.

As mentioned before, the mortgagees do not know the prices at local level. They will get 2 chartered surveyors and a local EA to submit valuations and then market for usually a minimum of 28 days at the highest valuation of the 3 before then considering monthly reductions of around 5% (sometimes 10% these days) until it sells or is put to auction. In your example, one of the surveyors or the EA must have advised the 355K asking price, but they will progressively reduce it over time until it finds its market value. The EA may well have advised the lower figure and therefore might feel confident that he can persuade the mortgagees to take £275K , particularly if the EA is prepared to sign the Best Price Certificate which we all have to do when we advise a mortgagee to accept an offer substantially below prior valuations.

your spot on there Honest EA it was on at 355k dropped 1st aug to 337.5k, 5% drop as you said, in the first month.if you are right again it should drop another 5% next month is this correct?

. how long will they keep dropping it 5% for?

is it until it reaches the 275k then what happens. i presume they are reducing it so quickly cos they are getting no interest?

there is another repo i have been watching but they are only reducing this every 3 months why is that?

when you say "until it sells or is put up for auction how low will they go before putting it up for auction ?

what if ther is absolutely no interest in it prior to going to auction?

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Hi there honest ea need your advice on a few things. We recently put an offer of 110000 on a repo which took them 7 days to come back to us and refuse. This was the second time they had put the offer forward. Weve basically been hagling with them for 3 months over this property, ie needs loads of work etc. Now the last time the offer was refused was round about 28 th july, so i emailed the ea to see were things are up to, and that we were thinking of putting an offer in on another property.

Now this is where it gets strange. They replied to say they recieved a higher offer on the property and they were due to complete on fri which is the 15th. What is strange is that there is no mention of it being sold or under offer or anything else on either rightmove or there own website. They never even bothered to tell us a higher offer had been made ,do they normaly do this? But what i dont get is how the ****** have they managed to see out the 7 day notice and complete between the 28th of july and the 15th of august. It stinks to high heaven to me. Have they got to advertise it in the local press by law? Many thanks on your thoughts.

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Now this is where it gets strange. They replied to say they recieved a higher offer on the property and they were due to complete on fri which is the 15th. What is strange is that there is no mention of it being sold or under offer or anything else on either rightmove or there own website. They never even bothered to tell us a higher offer had been made ,do they normaly do this? But what i dont get is how the ****** have they managed to see out the 7 day notice and complete between the 28th of july and the 15th of august. It stinks to high heaven to me. Have they got to advertise it in the local press by law? Many thanks on your thoughts.

We are not allowed to change the board to sold or post a sold notice on Rightmove until contracts are exchanged. This is to ensure that the property is fully exposed to the market right up to the last possible moment and to protect the mortgagees from legal action by the defaulting borrower alleging that the property was undersold. Worth testing them with another formal offer in writing if they have not changed the status to sold, this leads me to believe it might not yet have exchanged but that the buyer is hoping to complete on the 15th. This may be by way of a simultaneous exchange and completion for example and they just want to put you off the scent since a rival offer at such a late stage would push back completion and the EA pay day. I would find it unlikely that an EA would fail to display a SOLD notice if they had an opportunity in today's market, since they are priceless at the moment to attract the relatively few serious sellers out there.

Not bothering to tell you that a higher offer has been made is not breaking any laws but is not good practice if the EA is trying to discharge his obligation to achieve the best price. Advising you of the rival party may have incited you or the other party to make a higher offer, may be it wouldn't, but they will never know if they do not give you the opportunity.

7 day notices are not compulsory with all mortgagees. If they are asked for , it is not uncommon for the EA to bury them in some obscure publication or in the classified section away from the main advert to attract as little attention as possible ! This sounds daft, but to an unscroupulous EA, a potential bidding war when an exchange is close and payday is within touching distance is a major pain in the **se. We always play fair and put them in our main advert, however we forgot to mention that the powers that be have withdrawn our longstanding account with the local freebeee paper that everyone reads (cost cutting) and replaced it with much cheaper advertising in a publication that no one locally has heard of!

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your spot on there Honest EA it was on at 355k dropped 1st aug to 337.5k, 5% drop as you said, in the first month.if you are right again it should drop another 5% next month is this correct?

. how long will they keep dropping it 5% for?

is it until it reaches the 275k then what happens. i presume they are reducing it so quickly cos they are getting no interest?

there is another repo i have been watching but they are only reducing this every 3 months why is that?

when you say "until it sells or is put up for auction how low will they go before putting it up for auction ?

what if ther is absolutely no interest in it prior to going to auction?

5% does not cut it in todays's market. 10% reduction is the minimum required to attract fresh interest, anything less is just chasing the market down. It is up the the EA to get on the phone and advise the mortgagee to drop the price, if you are not proactive as the EA in my experience they will just leave it languishing unsold. 3 months unsold without a price ammendment is daft since the reduction required to sell it today is obviously far more than if they had reduced it after 1 month in a declining market.

They will keep on dropping it until they receive some offers.

Nothing special happens at 275K. It either sells for that or they keep on dropping it until it does sell. Continual price reductions imply no offers since most mortgagees will accept a proceedble offer within 5% of asking price, so if they are dropping it 5 % you can infer they have had no offer in that range since they obviously would have accepted them and not had to reduce.

There are no hard and fast rules about when a repo will be entered for auction but in my experience it is around the 6 month mark. If there is absolutely no interest prior to going to auction then the auctioneer will advise to the mortgagees a suitably enticing guide and reserve price to get the job done. Most sell on the open market though unless they are found to be structurally defective or the legal title is impaired.

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  • 395 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?


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