Buying property in receivership

blueredface

Hi there,

I've seen a property recently which has been on market 4 months ago and found it had sale agreed sticker on advertisement recently outside the property. I also rang and was confirmed it was sale agreed.

After two weeks, the same property came back for open viewing which I went for viewing asked the question to EA what's the story this is again on market and was told buyer's mortgage couldn't go through and also mentioned this property is receivership property and Bank prefer to sell to cash buyers.
Since, I have 30% mortgage and rest in cash, would this be good idea to buy this receivership property? or this is not straight forward process like normal Vendor / buyer deal through solicitor and could take longer than normal while dealing with this receivership property?

Second point was when asked what price was it sold and EA said it was first sale agreed 8% over asking price. I have doubt why then it didn't gone through in first place if it was sale agreed over asking price or EA is not telling the truth?

Appreciate your feedback.

Regards.

CruelCoin

My own experience with buying a home in receivership was a ****king nightmare.

I made the offer in mid-May and didn't get the keys untill December.

Bought it from KBC, and no amount of letters / phone calls could speed things up.

I just got answers along the lines of "its in the queue". First a queue for whether or not the offer was accepted (3 months), then the remainder of the time for them to finalise paperwork.
I couldn't get an answer on any of the questions i had: How long is the queue? Where am i in the queue? How long untill i get to the head of the queue?

One danger with these properties, is that i can take a very long time to finalise the financial dealings of the person the home was seized from. In my case, there were 3 banks squabling over the proceeds of my purchase, and that absolutely had to be sorted out prior to my purchase, as opposed to after.

My advice to you, ask lots of questions. If you get even the slightest hint that there is some unfinished business regarding the previous owner, then run. Save yourself a half year, and drop the bid.

handlemaster

CruelCoin wrote: »

My own experience with buying a home in receivership was a ****king nightmare.

I made the offer in mid-May and didn't get the keys untill December.

Bought it from KBC, and no amount of letters / phone calls could speed things up.

I just got answers along the lines of "its in the queue". First a queue for whether or not the offer was accepted (3 months), then the remainder of the time for them to finalise paperwork.
I couldn't get an answer on any of the questions i had: How long is the queue? Where am i in the queue? How long untill i get to the head of the queue?

One danger with these properties, is that i can take a very long time to finalise the financial dealings of the person the home was seized from. In my case, there were 3 banks squabling over the proceeds of my purchase, and that absolutely had to be sorted out prior to my purchase, as opposed to after.

My advice to you, ask lots of questions. If you get even the slightest hint that there is some unfinished business regarding the previous owner, then run. Save yourself a half year, and drop the bid.

Plus the property can get vandalised from the last time you looked at it.

Balmed Out

Why would the bank prefer a cash buyer?
Why did previous purchaser's mortgage approval fall through?

Could there be some issue with title, planning etc whereby a bank wont give a mortgage for it?
If that's a possibility depending on the prevalence of cash buyers where ever you are i'd be doing my homework and putting in a heavily discounted offer.

Ive come across two receivership properties that were cash only due to no certificate of compliance and the receiver was seeking cash only bids rather then doing whatever was necessary and then seeking planning retention etc.

CruelCoin

handlemaster wrote: »

Plus the property can get vandalised from the last time you looked at it.

Yup.

Some furniture inside misteriously vanished between visits....

My biggest worry was that the house was empty already for a half year, and this was a fresh half year, and us going into the winter.

I had to resort to getting the keys off the estate agent, and going in with a generator and blow heaters to stop the frost making **** of the piping.....

DAK69

Currently in the middle of buying from a bank, i think its KBC as well. We bid first on the house then had 1 rival bidder and beat them with our 1st improved bid. it took 10 weeks from our 1st bid to get to sale agreed. It went sale agreed on the Friday, I paid deposit on the Monday, then rang my solicitor on that Thursday to find out an estimate on how long the contracts would usually take to come in. I expected quite a long time but to my and her surprise the contracts had already landed the day before. That is were im at at the moment, just waiting on a letter from her now. I suspect il have to wait a little while for the vendor to sign the contract though

CruelCoin

DAK69 wrote: »

Currently in the middle of buying from a bank, i think its KBC as well. We bid first on the house then had 1 rival bidder and beat them with our 1st improved bid. it took 10 weeks from our 1st bid to get to sale agreed. It went sale agreed on the Friday, I paid deposit on the Monday, then rang my solicitor on that Thursday to find out an estimate on how long the contracts would usually take to come in. I expected quite a long time but to my and her surprise the contracts had already landed the day before. That is were im at at the moment, just waiting on a letter from her now. I suspect il have to wait a little while for the vendor to sign the contract though

Fook me.

Well, congrats!

simon13wrafter

Hi,

I went sale agreed on a property in possession by AIB back in November. KPMG (the receiver) do not have any updates on when the sale will close as the property is being held up by AIB. Initially I was told contracts would be issued in 5 weeks, then a further 2 weeks. Now it's mid march and still no update. The estate agent has no information either. Anyone have any ideas on what the hold up could be? I'm happy to wait as long as it doesn't fall through.

handlemaster

simon13wrafter wrote: »

Hi,

I went sale agreed on a property in possession by AIB back in November. KPMG (the receiver) do not have any updates on when the sale will close as the property is being held up by AIB. Initially I was told contracts would be issued in 5 weeks, then a further 2 weeks. Now it's mid march and still no update. The estate agent has no information either. Anyone have any ideas on what the hold up could be? I'm happy to wait as long as it doesn't fall through.

Add your reply here.


Your solicitor is the one to ask. Who on here would know ... only guess

simon13wrafter

yeah the solicitor can't get any information either - the only info KPMG (receiver) are giving them is that AIB have a hold on these sales and they cannot close the sale at present and are not at liberty to provide any more information. Was trying to see if anyone could speculate why AIB would have it on hold?

handlemaster

In that case the decision to sign off on the sale might not have been made. Usually I understand the banks do a once month review of receiver sales.

simon13wrafter

thanks for your help, I heard something similar that a committee might meet once a month to discuss and sign these things off.