reposessed houses....

[ProPlus]

Where can you find out about reposessed houses and who sells them??

Is it possible to buy a reposessed house on a mortgage?

Does anyone know any good website to look at?

Cheers

[touching cloth]

Think they tend to go through the auctions mostly, depends on who the lender is as to where and what exactly they do with them. Mortgage should not in theory be a problem but the address will likely throw up a few alerts on any credit checks etc.

[ProPlus]

Anyone tried

www.repossessedhousesforsale.co.uk/

or

www.repossessed-house-sales.co.uk/

are they worth paying for??

[jamesuk28]

Estate agents do get them I have brought quite a few. Problem is by law if you make an offer, that offer has to be advertised in the local paper etc on a 7 day notice. Most of the time some tosser increases on your offer. The agent and mortgage company have to get the best possible price for the property. Use to be a gold mine, not quite so good anymore.

[splodge s4]

jamesuk28 said:

Estate agents do get them I have brought quite a few. Problem is by law if you make an offer, that offer has to be advertised in the local paper etc on a 7 day notice. Most of the time some tosser increases on your offer. The agent and mortgage company have to get the best possible price for the property. Use to be a gold mine, not quite so good anymore.

Thats really the only difference, it has to be advertised in the paper to show the best price has been achieved. It will be marketed at the real price that its worth, it wont be cheaper just because its a 'repo' but just sold for what its value is, in the condition it is.

Mortgage wise its no differet to normal, only thing is your usually given 28 days to exchange, pick a lender that wont drag their feet.

Watch out for presents from pis#ed off ex owners... i've heard stories of moist carpets that suddenly grow grass as they have been sprinkled with seeds when they get kicked out!

[r5gttgaz]

My local estate agents advertise them all the time and set a time limit and wait for the highest bid.

Edited by r5gttgaz on Saturday 3rd February 13:14

[D-Angle]

Is it correct that the reserve price on these houses at auction is the amount left to pay off on the mortgage? And do they often go for this kind of money, or has property hysteria struck the auctions as well?

[r5gttgaz]

D-Angle said:

Is it correct that the reserve price on these houses at auction is the amount left to pay off on the mortgage? And do they often go for this kind of money, or has property hysteria struck the auctions as well?

The house sometimes gets sold at a value that will clear the debts of the bankrupt party.

[splodge s4]

r5gttgaz said:

D-Angle said:

Is it correct that the reserve price on these houses at auction is the amount left to pay off on the mortgage? And do they often go for this kind of money, or has property hysteria struck the auctions as well?

The house sometimes gets sold at a value that will clear the debts of the bankrupt party.

Not necessarily true...

The bankrupt party?... now that will be the borrower, they have nothing to do with this now... the property would have been repo'd by the lender (bank, building society)& and they offer it to auction.

The guide price on the advert is nothing to do with the outstanding mortgage & fees secured on the property, its just the price they think it may go for, often it sells for far more. No one knows the reserve price, thats set between the seller & the auctioneer, this may even be set on the day.

Once the prop sells the outstanding mortgage, charges, auctioneer fees are all reapid, any excess then belongs to the old borrower.

Now if a prop is in auction it could well be because its in a bad state of repair & isnt really mortgageable, it may not be reposessed, may be a deceased estate? Often houses go to auction if they didnt sell through an agent & this then is the easiet & quickest way to get shot of it.

[scotal]

D-Angle said:

Is it correct that the reserve price on these houses at auction is the amount left to pay off on the mortgage? And do they often go for this kind of money, or has property hysteria struck the auctions as well?

My recent experience of local auctions is that guide prices are set artificailly low to tempt bidders, once the bidding starts, the guide will usually either get passed on the first bid, or within the first few bids. Then it is simply a contest to see who's prepared to pay most.
A complete shed in a desirable location near our offices had a guide of 120-125k. Hammer price was £250k.
Sarah Beeny syndrome is alive and well in the south east.

Oh a small aside, if you are tempted to buy at auction, when the auctioneer tells you that the 10% deposit is forfeit if completion doesnt happen within 28 days, they mean it. They will, should you be unable to complete, keep your money. The guy I was chatting to recently sold the same house a total of 4 times, 3 times the deposit was forfeit. Therefore the vendor made around £60k of "extra" money, pre fees. With that in mind do your homework before the auction, not after.

Edited by scotal on Saturday 3rd February 14:28

[topsparks]

We bought a repossessed house through an estate agent although it needed a lot of renovation work we did make a lot of money it. This was 13 years ago after the bubble had burst in the very overheated market.

We had just moved again and find the property market is completely different to even 5-10 years ago. It seems that everyone thinks they are a property developer and pay way over the top for houses that are at auction, by tender or need renovation work. Yes Sarah Beeney is definately at large in the South East.