Receiver Sale

Reversal

Hi all,

Been looking for a while and have yet to find anything just right. However a property that suits our needs perfectly has just come on the market. It also represents reasonable value at the asking price, but it is a receiver sale, through an EA, not at auction.

We are FTBs who have AIP but not full approval. My research into receiver sales have me fearing the timelines are too aggressive for mortgaged buyers. In addition to the extra responsibility on the buyer to ensure due diligence.

Has anyone out there purchased from a receiver with finance, or should this place be left to cash buyers only.

Thanks

myshirt

No different to any other sale from your perspective. Just make sure you have a solicitor experienced in this. The bank may need to sell as mortgagee in possession and your solicitor needs to be extra vigilant about any encumbrances, but that's what you are paying them for. Don't worry about it.

Edgware

Receiver sales can drag out timewise but there certainly are some worthwhile properties there to be considered

4ensic15

Receivers often can't give mortgageable title. It is certainly not the same as any other sale.

Reversal

4ensic15 wrote: »

Receivers often can't give mortgageable title. It is certainly not the same as any other sale.

Thanks for all the responses. In relation to this point, is this due to complications with the title that was originally mortgaged? Are there more likely to be complications with a certain property type? Is this something a solicitor could catch before going sale agreed?

The property in question is a semi D in an estate. Never extended or altered.

4ensic15

Reversal wrote: »

Thanks for all the responses. In relation to this point, is this due to complications with the title that was originally mortgaged? Are there more likely to be complications with a certain property type? Is this something a solicitor could catch before going sale agreed?

The property in question is a semi D in an estate. Never extended or altered.

The receiver will insert disclaimers in the contract to protect himself. He can't say that there are no boundary disputes or that there has been compliance with the provisions of the Family Home protection Acts for example. There will be a long list of items in the contract that the receiver will contract out of. As a result, a bank may not be prepared to give a mortgage as the security will be weaker.

Reversal

4ensic15 wrote: »

The receiver will insert disclaimers in the contract to protect himself. He can't say that there are no boundary disputes or that there has been compliance with the provisions of the Family Home protection Acts for example. There will be a long list of items in the contract that the receiver will contract out of. As a result, a bank may not be prepared to give a mortgage as the security will be weaker.

Thanks for the reply. Is there anyway of knowing if the bank will mortgage a particular property before getting to stage if signing contracts?

4ensic15

Reversal wrote: »

Thanks for the reply. Is there anyway of knowing if the bank will mortgage a particular property before getting to stage if signing contracts?

The bak mortgage will depend on your solicitor's certificate of title. Your solicitor will have to tell the banks of any issues concerning the title and ensure that the bank is on board. This will have to be done before you sign but it will mean you have to pay your solicitor for the work even if the sale does not go ahead. There may also be a time lag between getting bank approval and your signing which the receiver may not be willing to accept.

Edgware

Reversal wrote: »

Thanks for all the responses. In relation to this point, is this due to complications with the title that was originally mortgaged? Are there more likely to be complications with a certain property type? Is this something a solicitor could catch before going sale agreed?

The property in question is a semi D in an estate. Never extended or altered.

It was my experience with an apartment purchase. There were a number of apartments in the one block and the receiver wouldnt close on one until he could close on them all.
Probably better situation in a house sale

Cmero

Hi Reversal,

Just wondering how did you get on with your receivership sale? I am in a similar situation in that I have placed a best & final bid on a receivership property 4 weeks ago but still have not been informed if they are going with our bid. The EA says he has not heard anything back from them yet. I was curious to see what others were experiencing.

happyfriday74

How close are you to the guide?

Bid will have to go from the EA to the Receiver with a recommendation to sell at the offer level.

Receiver has to put their additional paperwork on top of this and in turn justify this to the bank/fund who finally give the nod.

Bank/Receiver will have value figure for the house and if the offer is on par or in excess you will likely hear back quickly.

If its any lower you wont for some time or not at all.

Cmero

Thank you for replying. There was other bids on the house and we were the highest bid on the Monday and then on the Friday the EA rang to say the receiver asked for best & final offers on the following Tuesday. We increased our bid by €14,000 ( we could have been bidding against ourselves but thats the risk we had to take) our final bid is now 40% higher than the asking price for the property, but it's been 4 weeks. The EA said they would be letting everyone know of the outcome. I have phoned him a few times but he says he hasn't heard anything back. Very frustrating.

Reversal

Cmero wrote: »

Hi Reversal,

Just wondering how did you get on with your receivership sale? I am in a similar situation in that I have placed a best & final bid on a receivership property 4 weeks ago but still have not been informed if they are going with our bid. The EA says he has not heard anything back from them yet. I was curious to see what others were experiencing.

In the end, we stayed clear of the receiver property at the advice of our solicitor. The asking price wasn't sufficiently below market value in that particular case to justify the risks.

ashtims

Cmero wrote: »

Thank you for replying. There was other bids on the house and we were the highest bid on the Monday and then on the Friday the EA rang to say the receiver asked for best & final offers on the following Tuesday. We increased our bid by €14,000 ( we could have been bidding against ourselves but thats the risk we had to take) our final bid is now 40% higher than the asking price for the property, but it's been 4 weeks. The EA said they would be letting everyone know of the outcome. I have phoned him a few times but he says he hasn't heard anything back. Very frustrating.

Just wondering how you got on with this? In the process of a receiver sale at the moment.

Cmero

ashtims wrote: »

Just wondering how you got on with this? In the process of a receiver sale at the moment.

Hi there, 5 weeks after our bid we got an email saying we were not successful. I emailed asking how much we were outbid by but no response from EA! I saw on the property price register that we were outbid by €6k, absolutely gutted! I have seen people working on the house approx 6 months after the bid, good luck with it.

ashtims

Sorry to here it didn't work out for you. It is a stressful space to be in let alone have a third party vendor involved! Thanks for the well wishes and hoping you get your home soon!

ona1981

Hi there, could you please share your experience with getting mortgage for buying from recover?