purchasing a reposesed property

[tamirra]

Can anyone tell me if this is right? My son and his girlfriend have put an offer on a reposesed house there offer is the highest at the moment so all looks good, they are just waiting to hear if the offer has been excepted, if it is then they have said it goes into the local paper with their offer which as been excepted for others to see and then they have to wait and see if anyone else puts in a higher offer from then, does that make sence, if it does is this right?

[Ethel]

Yes, the bank is under obligation to get the highest possible price

[tamirra]

Thank you Ethel that is what i thought, but isnt that what they call gazumping, which shouldn`t be done anymore?

[bednobs]

even if it is gazumping, it's not illegal

[tamirra]

Oh really, well thanks for that, just have to keep all crossed now then. x

[R1Geezer]

this is to stop unscupulous lenders selling the property on the cheap just to get their money back with little regard to the mortgagee. The law was changed last time reposessions where common in the early 90's. Standard Practice as ethel says. Gazumping/Gazundering whilst morally questionalble are not illegal.

[LoftyLottie]

Really upsets me that other people benefit so much from other people's misfortunes and seriously hope that more can be done to help people stay in their homes instead of being repossessed. I have acquaintances who have made a fortune by buying repossessed houses in times of recession.

People who buy repossessed houses should have to buy at the true market value.

[tamirra]

They are willing to go to the asking price if need be, but who in there right mind wouldnt put an offer in to see if it gets excepted!

[tamirra]

Plus if you saw the state of the property people like they obviously are shouldn`t live in them a part of the house needs pulling down as its too dangerous to stay up.

[rachael88]

they make it really hard for young ppl to get a house my sister was waiting for 7 years she just got a place last year, am hopeing it will be quicker for me xxx

[LoftyLottie]

But the point surely is that the people had a mortgage on the property. If they choose to live in a state then that is up to them. The market value would reflect the state of the house in any case

I am not criticising your son, just saying that they should expect to pay the market value.

[rachael88]

lofty is right it will be hard for them at first but it will get easyer for them if you know what i mean

[jen78]

It's very common as my tends buy a fair amount of repossessed properties.

As Ethel said, the bank are under an obligation to get the highest price possible and there is also sometimes opportunity for the people who were repossessed to pay back arrears as well as I've had matters go off last minute without warning when this has been done.