Does 'Bank Sale' of a property make a difference?

readysetgo

Hi,

a house i went to see is a Bank Sale and i am interested
in people's experience(not speculation thanks!!), what effect does this have?

Is the Bank Seller likely to accept and go with a really fast offer or will they wait a few weeks at least to test the interest. the house is only just up since yesterday.

Anybody have experience of bank sales and how they usually go, Thanks.

killers1

readysetgo wrote: »

Hi,

a house i went to see is a Bank Sale and i am interested
in people's experience(not speculation thanks!!), what effect does this have?

Is the Bank Seller likely to accept and go with a really fast offer or will they wait a few weeks at least to test the interest. the house is only just up since yesterday.

Anybody have experience of bank sales and how they usually go, Thanks.

It tends to take longer to close the sale and get answers to your offers as they are usually decided by a committee. They also tend to hold out for as close to the asking price as possible and are willing to leave properties on the market till an acceptable offer comes along.

Marcusm

What do you mean by a bank sale? Has the bank actually repossessed it or is it a sale being encouraged by a bank but where the borrower remains as the owner?

I ask as I am going through the latter but would see things better if it was the former.

Some issues:

negotiation difficulties - the bank is the real owner but the solicitor must take instructions from the legal owner and have them agreed by the bank
planning uncertainties - who to get comfort from
closing - will the property be left in a fit state, will all the possessions be removed
closing - how to deal with the payments to ensure that little or no risk is taken on the supposed vendor

This latter one is exercising me; there seems to be little in the way of practical experience of aranging sales where the proceeds are insufficient to discharge the mortgage. The buyer is expected to rely on solicitor undertakings related to matters outside his control. That way danger lies....

Slydice

Probably depends on the bank at the moment too. Acc Bank, for example, seems to be pulling out of Ireland and selling a lot of its properties at the Allsop auctions. They would probably go for a faster sell.

readysetgo

thanks,
it seems to be the owner was renting the property and it was security against her debts and to quote the auctioneer 'she handed the keys back to the bank'!

hopefully it isn't a committee as i'm looking for a quick sale, i'll do some further questioning and try to find out which bank it is, cheers.

Marcusm

readysetgo wrote: »

thanks,
it seems to be the owner was renting the property and it was security against her debts and to quote the auctioneer 'she handed the keys back to the bank'!

hopefully it isn't a committee as i'm looking for a quick sale, i'll do some further questioning and try to find out which bank it is, cheers.

Check with the estate eagent whether he has been instructed by the bank or by the owner. If the bank has taken reposession proceedings or followed all the way through on the legals, it would be easier as you are only dealing with them and hopefully they will have set a price they can accept. If the house is still in her name and she's done a runner, I'd suggest you do likewise as it will be very hard for the bank to sell what they do not own. If the house is unusual or there might have been recent activity (e.g. building without permission) or development (is it a pre '63?) issues, i'd expect to have a tough time sorting them out without the owner's participation.

Likewise, are the tenants still in place? HAs PRTB, NPPR and household charge been sorted? None of these are your legal responsibility but I have found they caused issues.

readysetgo

house is vacated and the estate agent is dealing directly with the bank

StillWaters

You will almost certainly be dealing with a committee so. Do you know which bank?

Vic Davidson

Going through a bank encouraged sale at the moment. Frustratingly slow. Agreed a price with the seller over 2.5 months ago and contracts still not yet exchanged.

nemo32

My house was bank owned and the sale took me approx 3mths. House was vacant but my delays were caused by there being no heating or electric on in the house so i wanted to get them turned back on before i got my survey done and one other delay was that the committee took a few more days to sign the contracts than normal because there was few people and not just one, but still thought it was pretty straight forward from start to finish. Best of luck!

Marcusm

readysetgo wrote: »

house is vacated and the estate agent is dealing directly with the bank

In my case also the agent was dealing directly with the bank but when offer was agreed (late March) and the solicitor appointed he had to deal with the owner. The deal may close in September.....

odds_on

I am currently trying to buy from a bank who has appointed a receiver. The receiver is actually one of the personnel in a very large Dublin Estate Agents.

I put in my offer on a Thursday (mid June) and it was accepted on the following Monday. On the Tuesday, I put a deposit down.

The property had been on the market since November 2011, withdrawn in January and was back on the market in February.

What amazes me, is that sellers (whether private or otherwise) is that they leave all documentation until the last minute, i.e. until a deposit has been paid.

The seller's solicitors, if they know their job, should be able to send the correct documentation to the buyer's solicitors. There should be no need for the buyer's solicitors to request all the information. The Irish Law Society has a ready made buyer's questionaire (Requisition?) that the seller's solicitor has to complete and return. IMHO, the seller (or their solicitor should have this already completed and ready to send to the buying party. Whether this is completed when the property is put on the market or when the prospective buyer puts down a deposit makes no difference to the cost for the seller. However, it would dramatically speed up the sale process.

Furthermore, the BER cert should be available (as required by law) when the property id offered for sale and not obtained until a prospective buyer is on the scene.

In my case, my offer was mid June - 5 weeks later there was still no BER cert. Again, my solicitor was still waiting on information from the seller's solicitor who should know (if he is a good solicitor) that my solicitor would be requesting this information.

All this delays the sale process and completion of a sale. Last week, I informed all parties that the if the date of completion (which the receiver/seller's solicitor had put at 1 August 2012) is not achievable than I will withdraw from the purchase. There are many properties out there and I am not restricted to this one - I have not set my heart on this particular property and seeing others that have come on to the market since I put my deposit down certainly entices me to go for something else.

I have bought and sold properties in other countries, where the sale was completed within one week. Much of this speediness I put down to the fact that the Estate agents like to see a copy of the deeds and that all is in order before the property goes on the market. A land survey (ie.e boundaries) has to be done on each occasion but the EA would not proceed until it had been received.

Furthermore, the sale the solicitor acted for both seller and buyer and that solicitor ensured that everything was in order legally, for both parties. The solicitor would indicate to the buyer if there was a problem and likewise to the buyer. There never seemed to be a conflict of interests as the solicitor acted in a fully professional manner with both parties. And the solicitor's fees where split between both parties thus keeping legal costs down for both.