Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
I was tipped off earlier this evening that a property on a small development is in the process of being repossessed. Apparently, it has been to court and the current tenants are in the process of moving out, presumably so it can be sold. I would like to buy this if at all possible.
I will be calling the owner tomorrow to see whether there is any way I can assist him by perhaps buying it prior to repossession, but I have dealt with him before and don't hold out much hope of any kind of co-operation..
I know which court dealt with the hearing and also believe I know the lender involved but was wondering whether anyone knows whether it will be possible to approach the lender to see whether anything can be done prior to repossession?
I could always wait until it comes onto the open market but have bought repo's before and it was not a pleasant experience due to the fact that the properties stay on the market until exchange which means other offers will be considered.
If anyone has any experience of dealing with something like this I would be most grateful for your input - thanks.
Hi, I was in a similar situation a few years ago (I had even been inside the house before it went to court) and found it very frustrating. In the end I decided to walk away.
My experience : the property cannot be sold before the courts grant repossession, going to the court hearing allowed me meet the vendors solicitor but they were not willing to discuss anything - insisted everything had to go through their preferred estate agent.I put an offer in (allowing for the essential repair costs) and was outbid significantly. The property remained under offer for many months before being re-advertised (I suspect the buyer had trouble arranging funds or had underestimated the cost of repairs).Remember the estate agent will continue to advertise the property until you exchange contracts - potentially you could commit to significant legal fees then be out-bid.
I have saved 4 owners from being repossessed by attending court with them with proof of funds and a Memorandum of Sale (drawn up by myself). Judges will usually give the owner the benefit of the doubt against the lender and suspend repossession if there's a good chance of the vendor aviding it. If the vendor is uncooperative, there's little you can do until the Asset Management Co. appointed by the lender get control and they have to be seen to be advertising on the open market, always through an agent and/or an auction house.
My question is 'why would the vendor be uncooperative if you can save him from repossession and the financial and credit profile consequences of being repo'd. It's essential to know how far the repossession process has gone; vendors often lie or have buried their heads in the sand through desperation. How many court appearances have there been? Has the lender already obtained a possession order or notice of eviction? Has he handed back the keys?
Once the repo goes to an agent or auction house, we're in an open market and we're then competing against owner occupiers and builders. I have won good properties at that stage but its infinitely harder than cutting a deal in the vendor's interests before the County Court's final decision
It sounds like things worked out ok for all concerned in your cases, well done. I wasn't able to contact the owners of the property I knew about - but your way makes a lot of sense.
thanks for the suggestion.
If the lender is repossessing the property for sale then they will put it in hands of local agent. They will value it and ask for sealed bids or goes to highest offer if on open market.
Thanks for your input I have an update in that I called round tonight and spoke to the poor tenant who is to lose her home. She gave me a copy of a letter from the legal firm who are acting for the lender which states that the second court hearing takes place later this week.
I have called the vendor but he has yet to come back to me so first thing in the morning I will be calling the legal firm, although I doubt they will even talk to me.
I was wondering whether it was worth attending the court hearing and maybe even taking the tenant with me, although again I'm not sure whether this will be allowed or even whether we will have an opportunity to speak. I would like to think that by buying the property not only would it be of benefit to me, but it would also help the poor tenant and her family from losing their home.
As I said in the OP I dont think the vendor will be co-operative (and dont anticipate he will even show up at court) but wonder whether the lender might just be prepared to strike some sort of deal with me to help the tenants although I doubt it!
It is of course possible that the vendor owes more than the property is worth (and without going into detail I do suspect this might be the case) in which case there will be no deal to be done and it will get repossessed. This is sadly probably the most likely outcome in which I will then have to take my chance with all the other potential purchasers when it eventually comes to market.
Why don't you go on the land registry site and look up the property, it will tell you who the lender is.Think it costs £3 only. Then you know who you are dealing with. Then do some research and see when the property was purchased and for how much to compare prices today.
Hi Bosun, I suspect the judge would be sympathetic but unable to stay the repo if the owner isn’t there to defend the claim. Poor tenant. She should attend as an interested party to gain an extra month or so beyond the mandatory 2 months.