 My house is due for repossession, can i sell it for less than the outstanding mortguage? |
Am I better to sell it cheaper, rather than let it be repossessed and do I have to get my mortguage company to agree to the sale.
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VT♥Angel in Disguise♥ | Why do banks look to sell repossessed property so quickly? |
why dont they let it sit and rebuild its former value or increase? |
 |
 
Unbiased Find a Mortgage Adviser
 |
In fairness banks do not want a raft of properties on their books. Consider they have a wide range of capital secured against a market they are effectively forcing down in price and that will have a massive impact. By and large banks will repossess only when they need to but homeowners need to do themselves a favour and talk to their banks as quickly as they possibly can. If you are talking you are doing yourself a favour, if you are not, the bank does not know what it is dealing with in terms of risk so keep talking
Peter McGahan
http://www.wwfp.net/mortgage/mortgage-broker.html
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.impartial.co.uk. |
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annazzz1966
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Because they do not want to get stuck paying the bills for holding the property. |
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taxed till i die,
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They want their money back. |
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Scarlett write
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Because they are banks!!! they need to make money quickly- any money. The financial year does not wait for it to balance it's books so sitting on investments that do not have guaranteed ability to generate more income in a defined period of time are of no interest to them. |
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ukdavros
 |
Because
An Empty house will deteriorate unless they rent it out, etc.
They will have bills to pay etc
But they are not going to want to have all the extra hassle of doing that.
They dont loose out, they sell it for what they can get, and the people who had the mortgage on it will still owe the difference |
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John M
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The maintenance and carrying costs are too high |
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ohigan
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Banks are in the business of loaning money not owning real estate. A mortgage is secured by a lien on the real property(the house). When someone defaults on the mortgage loan the bank has to foreclose on the house to get the balance of the loan. Once the house goes to a sheriff sale the bank will bid what is owed on the mortgage, or another buyer will bid. If the house doesn't sell at the sheriff sale, then the bank will get title to it. With this title comes all the financial responsibility of taxes, property maintenance and the liability of a vacant home. That is why they want the house to be sold so quickly.
Ok. there was a short answer for this as well...They want their money back (or at least as much of it as they can get). |
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Real Estate Guy
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sounds like someone is looking to live free. |
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jupudi
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A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.
So any repossesed property(normally borrower defaulted) will be sold through public auction.
They are interested in lending loans and getting interest on the amount advanced,but not in
making properties. |
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Leo F
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By federal law banks and lenders are not allowed to own property. |
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Karen
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Because there is interest to pay.
Also an empty house quickly gets vandalised.
Broken windows let the rain in etc.
AJ suggests the banks should rent out the property but they are not in that business.
If they lend someone £100,000 to buy a house worth £120,000
and th person pays Interest plus £10,000 off
the bank is only owed £90,000.
They can afford to sell at auction for £90,000 and they have their money back.
If they only get £80,000 the person who borrowed in the first place has to make up the difference. This is often covered by an insurance policy. |
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AJ
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Unlike the other answers that all assume that the property is vacant. I think it would be in the best interest of the banks/mortgage holders to hold on to the properties and rent them out through a prop mgmt grp. That way there is still income being generated from the properties until the market recovers and they can sell for a profit. |
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old.holly265
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Others have posted a variety of practical reasons, but there is also a legal one. This is that, once possession has been taken, the bank is under a duty to exercise its power of sale as quickly as possible and, in doing so, to get the best price reasonably obtainable.
Having done that, the bank has then crystallised the position in relation to the market price, which means that the amount to be repaid to the former owner, or still due to the bank, can be properly calculated. |
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