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Auction property with tenant not paying the rent in full

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Comments

  • #32
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Nothing wrong with buying at auction if you're clearly understanding of the risks and you've priced those risks into your offer.

    Probably not the safest channel to acquire property for the unexperienced.


  • #33
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    parkhouse wrote: »
    the properties are still sold over and over again... strange
    People see a quick buck, think they can get rid of the tenant, but can't. And thus they sell the property again.


  • #34
    holliehobbie
    Registered Users Posts: 393 ✭✭holliehobbie


    The property being Freehold isn't relevant OP! The tenant currently in the property is a different kettle of fish though!


  • #35
    Marcusm
    Registered Users Posts: 10,183 ✭✭✭✭Marcusm


    4ensic15 wrote: »
    That banks don't want small mortgages. They are not going to go through that grief for a 75k mortgage. They would not have made a decision on it in a week either.

    It wouldn’t be from a standard bank; it would only be from an alternative lender and, as I said, would want to be for substantial multiples of 150 to be worthwhile.


  • #36
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,600 Mod ✭✭✭✭L1011


    parkhouse wrote: »
    It seems that all auction reviews I have seen until now all over the web tells you to keep away but at the end the properties are still sold over and over again... strange

    Bought by people who know what they are doing and can afford the time and cost required to regularise the situation

    The warnings are for people who don't know what they're doing


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  • #37
    Dav010
    Registered Users Posts: 14,001 ✭✭✭✭Dav010


    parkhouse wrote: »
    It seems that all auction reviews I have seen until now all over the web tells you to keep away but at the end the properties are still sold over and over again... strange

    I’ve been buying and selling properties for 25 years, a few bought at auction. There is nothing strange about it apart from the fact that many bidders go into auctions not understanding the processes and difference between auctions standard property sales.

    I can tell you op, even with a discount and cash purchase, I wouldn’t touch this. The tenant is likely telling you what you want to hear, no one gladly moves from their home into a hostel. The seller knows that this property would be more appealing with vacant possession, if the tenant is still there, they couldn’t get her out. You could get mired in a protracted and expensive eviction.


  • #38
    parkhouse
    Registered Users Posts: 19 ✭parkhouse


    Dav010 wrote: »
    The tenant is likely telling you what you want to hear, no one gladly moves from their home into a hostel. The seller knows that this property would be more appealing with vacant possession, if the tenant is still there, they couldn’t get her out. You could get mired in a protracted and expensive eviction.

    Why the tenant tell me what I want to hear, he is not the seller (he doesn't care).

    According to the receiver, the Bank knows that this property would be more appealing with vacant possession but they do not want to deal with an eviction as it can take minimum 7 months, therefore, they sell it as it is.

    have you experienced the same situation as you describe it?


  • #39
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    parkhouse wrote: »
    Why the tenant tell me what I want to hear, he is not the seller (he doesn't care).

    According to the receiver, the Bank knows that this property would be more appealing with vacant possession but they do not want to deal with an eviction as it can take minimum 7 months, therefore, they sell it as it is.

    have you experienced the same situation as you describe it?

    You see a house on Bidx1, which it appears didn't sell last time around. In that time you have managed to speak to the tenant and the receiver? Very peculiar. There is no receiver on that property, it is being sold by the bank as mortgagee in possession.


  • #40
    parkhouse
    Registered Users Posts: 19 ✭parkhouse


    4ensic15 wrote: »
    You see a house on Bidx1, which it appears didn't sell last time around. In that time you have managed to speak to the tenant and the receiver? Very peculiar. There is no receiver on that property, it is being sold by the bank as mortgagee in possession.

    Sorry but I don't understand what you are trying to say!!!


  • #41
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    parkhouse wrote: »
    Sorry but I don't understand what you are trying to say!!!

    How can you talk to a receiver when there is no receiver?


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  • #42
    geniejews
    Registered Users Posts: 16 ✭geniejews


    parkhouse wrote: »
    Hi, I just want to have a constructive input in regards to an auction that I am interested to bid on.

    The Property is sold with a sitting tenant (Rent €11,400 per annum).
    There is a fixed-term tenancy agreement copy that was set since 2011 with the previous owner for one year.

    I spoke to Bidx1 who said according to the Bank who repossessed the property that the tenant is supposed to pay 950 per month but unfortunately is paying 277 (no reason why was provided).

    I am aware that in order to terminate the tenancy you need to give notice of 224 days if the tenancy is more than 8 years. However, if the tenant is not complying to pay the total rent, is it possible to terminate the tenancy quicker within 28 days’ notice, regardless of the length of their tenancy?

    Thanks

    Hi Parkhouse, the answer to your query around the rent paid may not be so mysterious. If the Tenant is on RAS or Rent Supplement, that 227pm may be their own personal contribution. Usually when a Bank repossess a property they appoint a Receiver. That Receiver usually appoints an agent who supplies the tenant, who then supplies either RAS or the rent supplement office with the Deed of Appointment and the new bank details and HEY!!!!. The rent gets paid. If the Bank did not give proof of ownership to RAS/RS, or if there was a long drawn out battle between the Bank and the previous owner, the RAS/RS payment may have been closed. If you do go ahead and buy it, get your paperwork in order and once you are the new owner you can register with the RTB and seek rent from RAS/RS or HAP


  • #43
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    geniejews wrote: »
    Hi Parkhouse, the answer to your query around the rent paid may not be so mysterious. If the Tenant is on RAS or Rent Supplement, that 227pm may be their own personal contribution. Usually when a Bank repossess a property they appoint a Receiver. That Receiver usually appoints an agent who supplies the tenant, who then supplies either RAS or the rent supplement office with the Deed of Appointment and the new bank details and HEY!!!!. The rent gets paid. If the Bank did not give proof of ownership to RAS/RS, or if there was a long drawn out battle between the Bank and the previous owner, the RAS/RS payment may have been closed. If you do go ahead and buy it, get your paperwork in order and once you are the new owner you can register with the RTB and seek rent from RAS/RS or HAP

    The bank has not appointed a receiver. The legal documents are online. there is no deed of appointment of a receiver. the sale is not through a receiver. The new owner can't register as landlord without some basic information. None of which has been provided.


  • #44
    ted1
    Registered Users Posts: 23,254 ✭✭✭✭ted1


    parkhouse wrote: »
    Hi, I just want to have a constructive input in regards to an auction that I am interested to bid on.

    The Property is sold with a sitting tenant (Rent €11,400 per annum).
    There is a fixed-term tenancy agreement copy that was set since 2011 with the previous owner for one year.

    I spoke to Bidx1 who said according to the Bank who repossessed the property that the tenant is supposed to pay 950 per month but unfortunately is paying 277 (no reason why was provided).

    I am aware that in order to terminate the tenancy you need to give notice of 224 days if the tenancy is more than 8 years. However, if the tenant is not complying to pay the total rent, is it possible to terminate the tenancy quicker within 28 days’ notice, regardless of the length of their tenancy?

    Thanks
    If he is paying 227 and it’s in a rent pressure zone you are limited to raising it higher by more than 10 euro!!


  • #45
    geniejews
    Registered Users Posts: 16 ✭geniejews


    4ensic15 wrote: »
    The bank has not appointed a receiver. The legal documents are online. there is no deed of appointment of a receiver. the sale is not through a receiver. The new owner can't register as landlord without some basic information. None of which has been provided.

    Once the new owner is the registered owner and has the deed of transfer then they are the legal owners of the property and can register the tenancy with the RTB and with both RAS and HAP


  • #46
    geniejews
    Registered Users Posts: 16 ✭geniejews


    ted1 wrote: »
    If he is paying 227 and it’s in a rent pressure zone you are limited to raising it higher by more than 10 euro!!
    Total rubbish, took an example in a RPZ
    Tenancy Type:
    Existing

    Date tenancy commenced:
    01/01/2011

    Date previous rent set:
    01/01/2011

    Date new rent to take effect:
    01/10/2019

    Previous rent amount:
    €950

    Maximum rent permitted:
    €1116.25


  • #47
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,600 Mod ✭✭✭✭L1011


    I'm getting quite uneasy about the discussion of an identifiable specific property at this stage. The OP has been given quite a lot of solid advice so far so that should be enough


This discussion has been closed.
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