Can I minimise pre-auction costs?
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giordano
Apprentice
Joined: 17 Jan 2007
Posts: 5
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 Posted: 11/07/07 - 05:38 Post subject: |
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| We went to have a look at a house last week. The value of the house is about 120,000 pounds. However, we do not think it is worth that much. We offered 75,000 pounds for it because we no the owner is going bankrupt and she cannot afford to pay the rest of mortgage. Therefore, the house is being repossessed. However, she did not want to take the offer of 75,000 pounds. What happens now? Does anyone know how repossession works? If the house would go on auction, could I minimise pre-auction costs? |
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jasper
Apprentice
Joined: 11 Nov 2006
Posts: 20
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| Posted: 12/07/07 - 04:27 Post subject: |
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| If it was valued at 120,000 pounds and you offered just 75,000 pounds, it is no wonder that she refused your offer. I would refuse it too, regardless of my ability to pay the remainder. If she declared bankrupt before she exchanges contracts, the courts will take the house. Then the court will auction it for the highest price they can get in order to cover some of her debts. If it is repossessed and goes to auction, it will be advertised in the local press and you will not be allowed to put in a bid at the auction unless you can prove you can get a mortgage for the relevant amount. The auctioneers will ask to see it before they complete the sale. Therefore, you should try to make a little higher offer. That would be the best way to minimize pre-auction costs. |
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