anon
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Not in my experience. In this situation, the property will continue to be actively marketed until contracts are exchanged, since the bank / building society have to be seen to get the best possible price they can. In most cases once the offer has been accepted the seller will agree to take the property off the market.
I had an offer accepted on a repossession only to be told three weeks into the process that someone had made a higher offer. They then asked for our best and final offer, which although we upped our offer quite considerably was still not enough and we lost the house. In the end the property sold for more than the asking price and above what similar properties in the area were selling for. We ended up buying a bigger house in the same area for less, so things worked out for the best. |
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cheekybluebed
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yes |
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Sapphire
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I think in general yes. As long as the bank/mortgagee gets what it is owed then it is happy. |
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keiraebony
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Definately. The bank/mortgage company will either put it on the normal market for what its owed (if its considerabley less than market value they will up it a bit) or they will auction it if its in a bad state of repair. The starting price will be affected by the amount owed.
The goal of the debtor is to get the money they are owed the quickest way, so the selling price will always be cheaper than a non-repo house. They are not really interested in the equity. |
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Del Piero 10
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Broadly speaking yes. Most go to auction these days unless somebody makes a pre-auction offer and it is accepted. |
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John Corey
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You used the UK term for when a lender deals with a mortgage default. Not sure if you are talking about the UK or just used the term.
For the US and the UK a distressed sale can result in a sale price that is lower. It might be because the property has become run down so the price is fair based on the condition. Or it could be that the house sells for less given conditions of the sale. In the US all bidders at the auction have to be cash buyer and close almost immediately. Hence there are fewer people who can bid. In the UK you have a limited ability to conduct a survey after winning so you either spend the money up front or take a risk.
In any auction situation people have bid more than the property was worth. There can be issue with the title in the US in that the sale might be for a lien that is junior to other liens. Liens that the winning bidder did not know about given incomplete research.
There are some bargains and there are some that sell for market or above. |
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Tod Teddy
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yes they do, and if someone has a big mortgage or second mortgage and the house sell for less than that amount they can end up still paying monthly for a house they no longer own |
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susie x ♥♥♥
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Very often they are selled at auction so the selling price may possibly be lower. |
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Jeff V
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Properties in general do sell for less than their true market value when they are being repossessed by the lender.
The lender normally has to offer the property for sale for ten weeks inviting offers. Alot of people buy property this way by keeping their eyes on the property section in local papers. The advert will not mention repossession. They are normally offered by the largest and well known agent in the local area.
Buy property abroad instead. I used New Shores International
http://www.newshores.co.uk/spanish_property.html
when i bought my property in spain and again in Italy.
http://www.newshores.co.uk/italy.html |
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ALEGNA
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Generally yes! It's at the bank's discretion how much they want to sell it! A lot of factors are considered in making that decision. For one, the condition of the home. Many homeowners destroy the home. Why? Act of revenge! There are others they take into consideration, but that's probably one of the top decision factor! |
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g.m
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yes !!! the repossesser whats a quick return of money !! |
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chunky
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Yes,the mortgage company will sell for less because all they want is enough money to pay off the remaining part of the mortgage on the house |
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madge 51
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Of Course they do, That`s why it`s so upsetting for people that used to own them. |
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thecharleslloyd
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Very much so, but would you want to live somewhere where there has been so much hope crushed. |
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lenskid2001
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Once a bank has foreclosed on a home, they simply want to get as much of their money back as possible. So you may be able to purchase the home for a fraction of the actual market value (e.g. bank's judgment on the mortgage was for $100,000, but property is now worth $125,000)
However, unlike a selling individual, a bank WILL NOT warrant (or guarantee) good and marketable title to the property. In plain english, they are selling you whatever interest they have in the property, which may include child support liens, tax liens, judgments, etc. If the person foreclosed on wasn't paying his mortgage, he probably wasn't paying other things as well. You may be taking ownership subject to other debts that can be enforced against the property.
It can get ugly. More than at any other time, it is essential that you utilize an attorney when purchasing a foreclosure, and have a proper title examination done, so you know exactly what you are getting into. |
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gimli
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yes...they do sell for less... |
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Margaret
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Yes they can, because the banks are only interested in getting the money back that is owed to them. |
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Answer Queen
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Not always, the bank or building society has a duty to the mortgagee to sell the property at the highest marketable price to offset the outstanding money due. Often these houses are trashed by the owner prior to eviction so the price will reflect this. Be aware though it may not only be the mortgage that was owed the owner may have used the property to obtain other loans and the house can have a blacklisting, and there are tales of bailiffs turning up and the new owner having to prove their ID and ownership. These days most banks use a more in depth credit scoring system on the actual applicant rather than the address. |
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broadcasting_solutions
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in the UK, houses that are taken back by the bank usually go to auction and have been known to sell at 30% less than the actual market value of the property. as long as the bank gets something back they are not bothered too much |
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Rory C
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If the property goes to auction, the chances are it will sell at below the normal asking price |
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