What is bank entitled to when repossesses?

charlie2505

I am trying to find out what the bank is entitled to when they repossess a home. The house is a self build and the mortgage didn't even cover the full cost of the build. Alot of the owners own money went into finishing the house-such as the kitchen, doors, tiles etc. Does anyone know what the bank is entitled to keep and what the owners are allowed to take with them? Things like kitchen cabinets, kitchen appliances, fireplaces, baths, flooring, heating system, ceiling lights, furniture etc. Many thanks.

hfallada

I know in America before house are repossessed they are stripped completely. Literally everything is taken eg sockets, raditors, doors, boilers, light fitting.A few houses on myhome.ie are also stripped of everything.

Until the house is repossessed, its the individuals and I presume the individual can take what they like.

the_syco

When you buy the house, ensure everything is listed in the sale. Anything not on the piece of paper may not be there.

People can get really petty, and I've seen threads where the house they get is not the house they thought they had bought, because the owners had taken the kitchen and a few other items bolted to the ground!

davo10

I bought a repossessed apartment in the UK, literally everything was stripped out including knobs on the kitchen unit doors. Buyers pretty much expect it when buying a property like this. But I would imagine it really depends on what you are going to do with all the stuff you remove, sell it/store it/dump it?.

I relation to the house costing more to build and furnish than owed to the bank, unfortunately the house may now not be worth what it cost you to do this but if they sell it for more than you owe (they won't because all they are interested in is quickly selling it to cover the debt) technically you should get the excess.

The_Conductor

Even taking the light bulbs- is common.
To be honest- if its a fitted kitchen etc- removing it is more stress and hassle than anything else- and is solely done to piss off the bank and/or potential purchasers.

OP- you are handing over the house, and anything in it. You can strip it- if you like- but that is petty, time consuming- and a gesture of defiance on your part- nothing more, nothing less.

DubDani

I never understood why people will strip anything out. If it was me I would make as much effort as possible to hand the house over in the best possible condition to ensure that it fetches the best possible price.

What people forget is the fact that the Bank will come after them for any shortfall after selling the house. So the more the bank achieves for the house the less the possible shortfall will be. And a well presented house will clearly fetch much more then a stripped one.

You might even be in a position where the debt is less then the eventual Sale/Auction price, and the Bank will hand over the difference. It's not as if the Bank would keep it all in those circumstances.

crackcrack30

Are banks willing to sell repossessed propertys at a discount? if so at what % discount...?


I Saw a complete do'er upper in a decent rental area, house was rented for years with little or no reinvestment, when I enquired about it I was informed that it was a bank sale but that there was a hold up due to the bank being unsure of an acceptable sale price. Viewings were on hold and the auctioneer sounded pissed off.
Surely it's only worth what can be achieved on the open market ....looks like the banks want more than that. Way too much money was bailed into them IMO it appears to have left them in a cushioned position..

Ms2011

I'm sale agreed on a repossessed property, it is basically 4 walls & a roof everything is gone from it. It suits us in a way as we would have stripped it bare anyway & started fresh.
Word of warning though we are sale agreed nearly 7 months & no sign of any contracts so if you're in a hurry avoid a repossessed property like the plague.

The_Conductor

crackcrack30 wrote: »

Are banks willing to sell repossessed propertys at a discount? if so at what % discount...?


I Saw a complete do'er upper in a decent rental area, house was rented for years with little or no reinvestment, when I enquired about it I was informed that it was a bank sale but that there was a hold up due to the bank being unsure of an acceptable sale price. Viewings were on hold and the auctioneer sounded pissed off.
Surely it's only worth what can be achieved on the open market ....looks like the banks want more than that. Way too much money was bailed into them IMO it appears to have left them in a cushioned position..

Banks are not selling properties at a discount- they are being sold on the open market for whatever the market will bear.

As for the banks being in a cushioned position- unfortunately thats not the case, estimates vary on how much capital they need to raise to meet liquidity rules later this year- but it could be as much as another 30 billion........ Banks are not interested in offering discounts to anyone- they want cold hard cash- and as much of it as they can extricate from you.

riclad

The more the bank gets the less you owe.
an estate agent sells the house ,
Most house s if they are in basically good condition ,the price mostly depends on
the location.
More then the cost of building a house.

IN most cases ,it makes no sense to take out fireplaces, heating systems etc,
flooring as
this will have a negative effect on the sale price and put off potential buyers.

the LAW in the usa is completely different.
Many people stripped their homes, walked away when the mortgage was bigger than
the house value.

I assume if the houses, sells for more than the loan value,
you,ll get the difference ,
minus legal fees, estate agent fees .

if you look at 20 houses for sale on daft.ie ,
its hard to tell if any of them are bank sales .

IF you wanted a bargain on a house you,d be better off going to one of the property
auctions held every few months.

You could probably buy a house in rural area,s for less than the cost of construction.

The_Conductor

riclad wrote: »

IF you wanted a bargain on a house you,d be better off going to one of the property
auctions held every few months.

Just to clarify, by agreement, Allsops are not auctioning any repossessed PPR properties. You won't find any bank repossessed PPR properties at the auctions (any more). You will find BTL properties- which by their nature may need significant renovation in any event.

hfallada

DubDani wrote: »

I never understood why people will strip anything out. If it was me I would make as much effort as possible to hand the house over in the best possible condition to ensure that it fetches the best possible price.

What people forget is the fact that the Bank will come after them for any shortfall after selling the house. So the more the bank achieves for the house the less the possible shortfall will be. And a well presented house will clearly fetch much more then a stripped one.

You might even be in a position where the debt is less then the eventual Sale/Auction price, and the Bank will hand over the difference. It's not as if the Bank would keep it all in those circumstances.

But generally in America, the people who have their house repossessed go for bankruptcy and start a new life debt free. That still isnt an opinion for most people in Ireland now. Bankruptcy is still too slow and expensive,even with the new reforms

jmayo

charlie2505 wrote: »

I am trying to find out what the bank is entitled to when they repossess a home. The house is a self build and the mortgage didn't even cover the full cost of the build. Alot of the owners own money went into finishing the house-such as the kitchen, doors, tiles etc. Does anyone know what the bank is entitled to keep and what the owners are allowed to take with them? Things like kitchen cabinets, kitchen appliances, fireplaces, baths, flooring, heating system, ceiling lights, furniture etc. Many thanks.

Where is it, some people round here might want to buy it.

The_Conductor wrote: »

Banks are not selling properties at a discount- they are being sold on the open market for whatever the market will bear.

As for the banks being in a cushioned position- unfortunately thats not the case, estimates vary on how much capital they need to raise to meet liquidity rules later this year- but it could be as much as another 30 billion........ Banks are not interested in offering discounts to anyone- they want cold hard cash- and as much of it as they can extricate from you.

To a degree they are right.
Some banks are cushioned from reality by us taxpayers.

Hence you have AIB deciding to be generous with loan writeoffs, backing of failed developers ala carroll whereas the banks having to stand on their own feet like Ulster, Rabo/ACC are more interested in finding money themselves to balance their books.

Victor

Any thing that is screwed (with screws, not light bulbs), bolted, glued, etc. to the building can be taken to be part of the building.

Removing them , when you no longer own the property may be a theft / fraud offence.

stoutykid

I have heard of people removing fireplaces, garden sheds, showers and decking....! find this really petty. Can't understand why someone would go to the bother to be honest.

ABajaninCork

Houses don't have to be repossessed for owners to strip them. I think I mentioned on another thread the state of my flat when I got the keys. Filthy didn't cover it. Oh - and the vendors took everything that wasn't bloody nailed down. Including the bog roll holder and the light bulbs...

To my mind - it ain't worth the hassle. Leave the house as it is, and hopefully, you'll get a good price for it.