Trying to buy a house that was repossessed

R

Rubix

Guest
Hello everyone,

I have my eye on a house, I came across it just in time for the owner to drop the keys with the bank (I know it's a lot more complicated than that but I don't have any more details from the EA) Bank Of Ireland have been sorting "red tape" ever since March and as I'm eligible for first time buyer status, I'd like to get it sorted before the govt initiative for first time buyers at the end of the year expires.

Does anyone have any experience with how long it generally takes repossessed homes to be put back on the market? Both my solicitor and the EA have received no information from the bank, I've been preapproved for a mortgage by BoI but no one I spoke with in the bank seemed to know how I would find out the status of the house or how close it was to being put on the market.

I have my heart set on this house but I'm still looking elsewhere, but I'd like to hear if others have had similar experiences?
 
I wouldn't hold my breath. I bought a repossessed house last year, and when I seen paperwork, it had been idle on the banks books for almost 2 years. Even when offer was accepted and conveyancing started, the banks legal department were snail like in their responses and it took 6 months to complete.
 
Hey Sarah,

Thanks for the reply, even though it was disheartening! It looks like not many people have experience buying a repossessed home and if the banks are keeping the houses on the books for two years it's no wonder!

Thanks again!
 
Took me 7 months from sale agreed to closing. So you may not even close in time to get mortgage interest relief before it expires at the end of the year. Bear this in mind.

Insist that the bank sells to you as mortgagee in possession, not through a receiver. Talk to your solicitor about this.

If a receiver has been appointed, the contract for sale will be heavily "conditioned". The normal warranties that a seller would provide (e.g. that the property will be transferred to you encumbrance free) will be stripped out. It is not a straightforward purchase. Do not sign anything until your solicitor is 100% ok with contract, as your solicitor will have to give a certificate of title to your mortgage lender and so he/she will only do so if he/she is totally comfortable.

That said, if the contract is clean enough initially it should be easier.

Good luck
 
I bought a repossessed house two years ago and it took 6 weeks to complete from time I put in my offer - considering there were judgements attached to the house which were cleared for the sale, this was completed very quickly.

I wouldn't know though how long house took to put on the market by the bank.
 
@Badran: Thanks for that, we have a solicitor lined up and he made it clear he has to go through the paperwork with a fine tooth comb but as you say if the contract is clean hopefully it won't be a big job

@Scotsgirl: if you don't mind me asking did you offer asking price and that's why it went so fast?

I'm considering writing to the bank branch manager as I feel we simply have no avenue to communicate our interest in the property, I'm hoping if they see they have a realistic chance of a sale they will sort the paperwork... Naive I'm sure but don't really have anything left to lose...
 
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