Buying a repossession

[northwest monkey]

LooneyTunes said:

LFB531 said:

Buying/bidding process can be a pain as lender has to show best possible price obtained so assume you WILL get mucked around along the way.

In theory, yes. Doesn't stop us suspecting that a whole boatload of monkey business went behind the scenes (at the agent level) with one that we didn't end up securing.

This has happened to us a couple of times. One time, we'd had a survey done & done all the legals. A Housing Association then came in with a stupid figure right at the last minute - way above the asking price & they got it. Cost me about a grand the dirty mofos.

[LooneyTunes]

Ours was a little fishier.

Have reason to suspect it may well have gone for significantly less than we offered to someone connected to the agent.

[paul_y3k]

We purchased a repo over 3 years ago now. Very lucky in what we got as the guy had just walked out, leaving the keys.

The House was in good order, but had been left empty for quite a while. The first thing that happens is that the repo company drain down all the water systems. So as another poster has said, lack of water = smelly house. We used 29 litres of bleech on the first day cleaning the bathrooms !

You will make 'some' discoveries too, at the time, we couldn't get into the garage due to all rubbish that had been left outside - after getting the keys and cleaning up we got in, to discover the place had been fitted out as a bar ! The loft had been boarded and again we had piles of stuff to wade through, including the last owners cross dressing gear !

The worst thing for us has been debt recoverey though. The same debts are chased every 6 months by a different set of compaines ( I'm guess they are selling them on too each other). We initially tried to send the letters back unopened as not known at this address, but in the end we took to calling the companies and speaking to them directly to get the address off the mailing list. We have also had bailifs ... ots of bailifs, I dont care, but a few have been quite pushy when the Mrs is at home and not believing that the house has new owners. Classic for us was the Halifax chasing a 300K mortgage with the sugestion that if only 6K was paid then they would arragne new terms....

It's been an interesting time tho, and we do love our house as it enabled us to buy a lot bigger than we could have expected.

[Joyrider1]

Been doing a bit more digging on this and while First Direct told us earlier in the week that they had no restriction on buying a repo, we called back to double check only to be told that if the house has no kitchen/bathroom then they won't give us a mortgage on it. Seems ridiculous seeing as that is the something we'd put in during the first week of ownership.

Anyway, does anyone know any lenders that are willing to lend on this type of property? Am guessing we'd probably have to pay through the nose, but once we've got it habitable then nothing to stop us going back to a normal lender....

[buzzer]

If you need a mortgage it can be a nightmare buying a repossession...

It has to appear in the paper again at the price you have offered... and unless your price is bang on, you get outbid, that's after you have paid out on solicitors, searches ect...

best left to cash buyers who can move very quick...

[Joyrider1]

buzzer said:

If you need a mortgage it can be a nightmare buying a repossession...

It has to appear in the paper again at the price you have offered... and unless your price is bang on, you get outbid, that's after you have paid out on solicitors, searches ect...

best left to cash buyers who can move very quick...

Yeah, but think I'm prepared to take the risk for this one

[rufusgti]

I bought a Repo in Feb.

We offered 5K under asking, went to see the agent. Showed him My statements with the deposit, told him I needed 50% mortgage and that I could complete within 28 days. Basicly be totaly honest with them. They NEED to get a quick sale, they also have to put forward every offer to the seller. So get that agent on your side, keep them updated at every single stage, let them know your on top of it, getting the mortgage, soliciters, valuations done. I did this and it worked when someone offered 5k more. My agent told the seller I could complete in 5 days and advised them not to take the higher offer. If I was being vacant/flaky this would have cost me at least a grand.

Dont under estimate the work it will need. You sound like I did when you say you will have a bathroom and kitchen in within a week. You wont. The first week you'll probably spend trying to get electric/gas/water connected and cleaning rubbish and old carpets out. I finished mine in 4 months. I had the whole house re plastered, new kitchen, bathroom, rewire, floors throughout, tiles, skirtings. I couldn't have done it any quicker. Working your day job then working untill 10 or 11 every night isn't fun after the first 2 weeks. Just be realistic. The benefits is your not paying for anyones taste. Get the house cheap and do everything the way YOU want it. I'd definitely do it again. Probably saved myself £40k

[buzzer]

Joyrider1 said:

buzzer said:

If you need a mortgage it can be a nightmare buying a repossession...

It has to appear in the paper again at the price you have offered... and unless your price is bang on, you get outbid, that's after you have paid out on solicitors, searches ect...

best left to cash buyers who can move very quick...

Yeah, but think I'm prepared to take the risk for this one

Good on you. Hope it works out, keep us posted!

[Joyrider1]

Thanks for the advice Rufus - much appreciated and good to get a realistic view of what it might take

[wolf1]

Re the kitchen issue with FD. Buy a cheap sink unit and sink with taps ( as cheap as possible or from the local tip. ) get another viewing before the surveyor goes in and slap it in the kitchen. Hey presto basic kitchen.

[FlashmanChop]

AmitG said:

Can anyone advise on good places/websites/whatever for buying repossessions?

Google throws up masses of hits as expected, but it's difficult to know which ones to go for. I imagine this is an area where you need to tread carefully in terms of legalities etc.

Thanks

Flirting and being a downright man slag with the ladies in the estate agents in your preferred areas of property often helps

[AmitG]

FlashmanChop said:

AmitG said:

Can anyone advise on good places/websites/whatever for buying repossessions?

Google throws up masses of hits as expected, but it's difficult to know which ones to go for. I imagine this is an area where you need to tread carefully in terms of legalities etc.

Thanks

Flirting and being a downright man slag with the ladies in the estate agents in your preferred areas of property often helps

I shall start practising

What about property auctions? Anyone bought from one? I'd be interested to hear experiences

[98elise]

AmitG said:

I shall start practising

What about property auctions? Anyone bought from one? I'd be interested to hear experiences

I've bought at auction. Exchange occurs on the hammer fall. You need to pay 10% there and then, complete in 4 weeks.

Very quick process so have everything sorted prior

[AmitG]

98elise said:

I've bought at auction. Exchange occurs on the hammer fall. You need to pay 10% there and then, complete in 4 weeks.

Very quick process so have everything sorted prior

Thanks for that

How does it work with auctions? Is there any way to look around the property before you bid, or are you buying strictly on external condition?

What are the fees like?

When you say "have everything sorted prior" presumably you need to have a mortgage sorted, but surely the mortgage surveyor/valuer would need to look around the property first before making a decision. So how does that work?

I presume the onus is on the bidder to have conducted appropriate land registry searches etc. beforehand - so you need to have done the legal paperwork before bidding and you're bidding strictly to buy rather than "buy subject to checks" - is that right?

Any recommended auction houses to sign up with? And any to avoid?

Obviously I will try to find this stuff out myself, but any initial pointers would be welcome...

[Ade07]

AmitG said:

98elise said:

I've bought at auction. Exchange occurs on the hammer fall. You need to pay 10% there and then, complete in 4 weeks.

Very quick process so have everything sorted prior

Thanks for that

How does it work with auctions? Is there any way to look around the property before you bid, or are you buying strictly on external condition?

What are the fees like?

When you say "have everything sorted prior" presumably you need to have a mortgage sorted, but surely the mortgage surveyor/valuer would need to look around the property first before making a decision. So how does that work?

I presume the onus is on the bidder to have conducted appropriate land registry searches etc. beforehand - so you need to have done the legal paperwork before bidding and you're bidding strictly to buy rather than "buy subject to checks" - is that right?

Any recommended auction houses to sign up with? And any to avoid?

Obviously I will try to find this stuff out myself, but any initial pointers would be welcome...

Yes interior viewings are done prior to the auction day so access isn't a problem. Difficult to organise mortgage finance on auction purchases though, it can be done but not easy, the time scale can be a problem as auction catalogues normally only come out approx 2 -3 weeks before auction day.
The legal pack is usually posted online about 2 weeks or so before the actual auction or it can be read on the day.
Some regular auctions that we use are www.pugh-auctions.com or www.allsop.co.uk

[S6PNJ]

LFB531 said:

....... so assume you WILL get mucked around along the way.

scenario8 said:

.......and can be a nightmare. Expect to have to move quick if you bid and are accepted.

SpeedBash said:

Banks usually want cash quickly so you may have to complete within 4wks.....

McHaggis said:

.....from phone application to survey and mortgage completion was 7 working days.

buzzer said:

.....best left to cash buyers who can move very quick

rufusgti said:

.....They NEED to get a quick sale

Sorry but I have to laugh either that or cry!

Having exchanged today at 1700hrs, I have to say that not all repo's (or assisted purchase in my case) go as smoothly as they should. My offer was accepted on 6 Jan 12 (yes JANUARY) and we have only just exchanged today. To say the sellers (divorcing couple) and their solicitors were an absolute bunch of fkwits is being economical with the truth! Oh, and to top it off, they want an extra 2 days (4 if you count the weekend) to clear the property! For Christ's sake, they've had 6 months!

[Ade07]

S6PNJ said:

LFB531 said:

....... so assume you WILL get mucked around along the way.

scenario8 said:

.......and can be a nightmare. Expect to have to move quick if you bid and are accepted.

SpeedBash said:

Banks usually want cash quickly so you may have to complete within 4wks.....

McHaggis said:

.....from phone application to survey and mortgage completion was 7 working days.

buzzer said:

.....best left to cash buyers who can move very quick

rufusgti said:

.....They NEED to get a quick sale

Sorry but I have to laugh either that or cry!

Having exchanged today at 1700hrs, I have to say that not all repo's (or assisted purchase in my case) go as smoothly as they should. My offer was accepted on 6 Jan 12 (yes JANUARY) and we have only just exchanged today. To say the sellers (divorcing couple) and their solicitors were an absolute bunch of fkwits is being economical with the truth! Oh, and to top it off, they want an extra 2 days (4 if you count the weekend) to clear the property! For Christ's sake, they've had 6 months!

Which is why auctions are the best option for repossessions - 28 day completion, exchange on the day of auction = no messing around. Simples!