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Buying a repossessed house, are there pros or cons?

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  • 18-05-2017 8:08pm
    #1
    fro9etb8j5qsl2
    Closed Accounts Posts: 2,391 ✭✭✭


    I've been looking around for a little fixer-upper seaside cottage as an investment/holiday home and found one that seems perfect. However, when I rang to arrange a viewing, the estate agent told me that it's a reposession being sold by the bank. Will that make the sale more or less complicated? I'm buying with cash so there's no issues regarding mortgages etc. Also, given that it's a bank sale, will they be less likely to move on the price?


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    #2
    L1985
    Registered Users Posts: 1,018 ✭✭✭L1985


    I know a house on our road sold within a week a repossession sale. As soon as it reached the asking price the bank accepted it. Another bidder tried to go up by another 5k and they were told (1day later) that it was sale agreed. So they can move very fast with it that much I do know!


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    #3
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    They can move fast, they can also move very very very slowly. There's no telling which it's going to be.


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    #4
    PeteK*
    Registered Users Posts: 995 ✭✭✭PeteK*


    How can you tell that a house for sale is a repossessed house?
    The only thing I would worry about is neighbours not being happy with you buying a house that a family was kicked out from by the bank.


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    #5
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    PeteK* wrote: »
    How can you tell that a house for sale is a repossessed house?
    The only thing I would worry about is neighbours not being happy with you buying a house that a family was kicked out from by the bank.

    It's more likely neighbours will be delighted to have the empty house next door brought back to use after several years of nothing.


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    #6
    fro9etb8j5qsl2
    Closed Accounts Posts: 2,391 ✭✭✭fro9etb8j5qsl2


    PeteK* wrote: »
    How can you tell that a house for sale is a repossessed house?
    The only thing I would worry about is neighbours not being happy with you buying a house that a family was kicked out from by the bank.

    That sort of thing worries me alright, and also the fear that the house might have belonged to a local that would cause trouble to whoever buys it. However, it was reposessed mid renovation and it looks more likely that someone bought it as an investment to do up and sell on, but ran out of money half way through, rather than a family being evicted from their home.


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    #7
    Fanny Wank
    Registered Users Posts: 1,288 ✭✭✭Fanny Wank


    PeteK* wrote: »
    How can you tell that a house for sale is a repossessed house?
    The only thing I would worry about is neighbours not being happy with you buying a house that a family was kicked out from by the bank.

    A lot of people say this but despite what the media and politicians portray most people I know, while having sympathy for the people involved, don't have a huge problem with repos.


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    #8
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    The main problem with repossessed houses is the title. Some of them are unmortgageable.


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    #9
    Bigus
    Registered Users Posts: 4,942 ✭✭✭Bigus


    L1985 wrote: »
    I know a house on our road sold within a week a repossession sale. As soon as it reached the asking price the bank accepted it. Another bidder tried to go up by another 5k and they were told (1day later) that it was sale agreed. So they can move very fast with it that much I do know!

    Especially when the buyer is friendly with the estate agent, and sells cheap exclusively to his mates.

    Getting good title can be an issue if there's a receiver involved , and say the original owner is a gangster prepared to come back and enforce his ownership once the banks gone away ?

    After all the bank only loaned the money , they never ever had title to the property, and in the event of later trouble or disputes with a previous "full owner" squatting etc the responding Garda would shrug his shoulders and says "it's a civil matter " which then might be argued out in the high court , with all the attendant costs for the purchaser and the receiver long gone with the money and file closed.

    Start by talking to the neighbours, it can be a dirty business ,hence the lower asking prices.


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    #10
    ThisRegard
    Closed Accounts Posts: 27,833 ✭✭✭✭ThisRegard


    A house went up for auction on a road I used to live on after a repossession. After a while a sold sign appeared on it. 5 years later, when I moved, it still had the sold sign on it with nobody living in it.


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    #11
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    4ensic15 wrote: »
    The main problem with repossessed houses is the title. Some of them are unmortgageable.

    What makes you think this?


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    #12
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Graham wrote: »
    What makes you think this?

    I have read the titles offered. The Law Society is complaining about it. The special conditions overwrite the most important parts of the standard contract.
    Solicitors cannot certify that the newly acquired title is good and marketable.


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    #13
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    4ensic15 wrote: »
    I have read the titles offered. The Law Society is complaining about it. The special conditions overwrite the most important parts of the standard contract.
    Solicitors cannot certify that the newly acquired title is good and marketable.

    I'm not sure where you're reading the titles. I have never yet come across a bank/auction sale where there's been a problem with title.

    Banks won't lend unless there's good legal title over a property so I've no idea what properties you're looking at where the title suddenly vanishes into thin air when a house is repossessed.


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    #14
    Ms2011
    Registered Users Posts: 3,129 ✭✭✭Ms2011


    I bought a repossessed house. It took us 17 months from paying the deposit until the sale closed. The problem was the bank dragging their heels, no issue with the title, as soon as the bank got their finger out the sale when through in about 10 weeks.

    As for the neighbours they were delighted someone bought the property & were renovating it after it lay ideal for 5 years. Even the former owner dropped by with her sister to have a look around as she still lives local.


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    #15
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Graham wrote: »
    I'm not sure where you're reading the titles. I have never yet come across a bank/auction sale where there's been a problem with title.

    Banks won't lend unless there's good legal title over a property so I've no idea what properties you're looking at where the title suddenly vanishes into thin air when a house is repossessed.

    The banks get a good title. They don't offer one in many cases because they can't. How can a bank tell you if the is a boundary dispute with a property? How can they say there has been compliance with the Family Home Protection Act? Planning permission? In most cases they refuse to say anything.


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