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Repossesion and buying of one.

If you know that a house has been repossessed and is going up soon with a certain estate agent can you put a offer in before it goes up and can the previous owner who has been repossessed make a profit on the repossession?

Asked on Aug 21 2010, House Prices in Liverpool | Report content

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  • You can put an offer in but the agent will take the offer and do nothing with it until it is on the market. Agents and the bank have to be seen to get the best price. Selling it before it goes on the market could be percieved as selling it cheap before it hits the open market. Then the bank gets into trouble. Best thing to do is speak with the agent. Some agents wont let you offer before you have viewed anyway. Bottom line is there will be a public notice in the paper to say an offer of X has been made on Y property so you wont loose out. Any residual after the mortgage has been paid and costs will go back to the repossessee. However, foir it to be repossessed there is probabaly £10k of missed mortgage payments plus it costs about £10k to £15k to repossess a house which has to come out of any profits ... so the previous borrower shouldnt hold their breath

    Answered on Aug 22 2010, Report content
  • Yes you can put an offer in. Offer very low, this gets you on the agent's books. The when it's on the market you will get told, and can always increase your offer. If someone defaults on their mortgage, the bank will repossess the house. In theory someone could have say, a house they bought 15 years ago for £150k which is now worth £400k, and default on an interest-only mortgage of say £120k. The property might then fetch £360k as a quick sale, with, say £10k of fees. The mortgage will be settled and the defaulter would get the other £240k. This is in theory. It rarely happens like that. As a repo buyer one dreams of properties offered where the bank's mortgage is low. This is because if the best offer the bank receive exceeds the mortgage outstanding, they will take it.

    Answered on Oct 15 2010, Report content

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