buying a repossessed housegreenspun.com : LUSENET : Repossession : One Thread
We have seen a house but it appears to have been repossessed. We don't know much about buying this type of houses, only a little research we have done after finding this one.
Probably the bank will prefer a buyer with cash. I need to complete the sale on my existing flat so, does someone know of any way I can persuade the bank to accept my offer?
Also, I read that repossessed houses are normally sold at a much lower price than the market value. Can anyone tell me what a "much lower price" means? The house was for sale at 190K. Because it has been on the market for a while (at least more than one month)they have reduced the price to 180K. The house needs quite a lot of work, so we are thinking of putting an offer of around 160K. Can someone tell me if this looks too little or too much for a repossessed house.
-- kate (firstname.lastname@example.org), July 05, 2004
Kate, Further to your above posting - there are several questions/comments I will make..as follows:-
Q1. What do you mean by 'type of house' Semi-detached, detached etc or by 'type' do you mean repossessed ? Q2. If it is the latter why is it a 'type'?
Comment1. Whichever house that is sold as 'repossessed' has in all probability been someone's home! The fact that it has been repossessed at all indicates that 'things have gone badly wrong' for the people who lived there. (such as - job loss;illness;divorce; etc) The odds that it has happened because they are criminals are very low.
Think how you would feel if it happened to you Kate!!
Comment2. In a bouyant property market such as exists today there is no reason or need, moral or legal, for a property that is 'repossessed'to be sold at a 'much lower price' than what would be a fair market price for the property involved.
Q3. Have you researched the prices for similar properties in the area? (That will give you guidance regarding offer prices, that is if you want to behave like a fair-minded, decent person.)
Comment3. If you decide to jump on the 'greed' bandwagon and buy at an unfair price you should bear in mind that nothing is this life is free. At some time in the future life will present you with a bill for the outstanding balance. I hope you will be able to pay.
Think about it Kate.
-- Joy Harker (email@example.com), July 13, 2004.