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Purchase of a house in receivership

  • 30-04-2022 8:34pm
    #1
    Registered Users Posts: 49


    Hi,

    anyone any experience good or bad purchasing a house that is in receivership? We have gone sale agreed and looking for some info on the process.

    Thanks



Comments

  • Registered Users, Registered Users 2 Posts: 69,537 ✭✭✭✭L1011


    Expect documentation issues at the very least. Your solicitor will need to make very sure that there is a marketable title. Are you using a mortgage?

    On the bordering on scare story level, try find out how sane the people it was removed from are. Retaliation is not unheard of, albeit very very rare. In rural areas there's more chance of risks I'd say.



  • Registered Users Posts: 49 Wurley


    Yes. We are using a mortgage and have a recommended very good solicitor. We’ve been told it’s been empty for quite some time



  • Registered Users Posts: 3,540 ✭✭✭Ginger83


    Fully agree especially rurally. You are buying someone else's bad luck.



  • Registered Users Posts: 49 Wurley


    No it’s not rural. Yes understand that. Hopefully no one holds a grudge but I will look into it for sure



  • Registered Users Posts: 299 ✭✭Citygirl1





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  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    can attest to this , once had hired goons come to my house after purchasing an apartment in receivership , the guy who lost the apartment either had a mole working in the receivers or someone runny at the mouth disclosed my personal details to him after the auction , I got my 10% deposit back as the legal firm representing the receiver admitted they were familiar with the carry on and it had happened before , they returned my deposit without protest , i didnt go to the guards , no direct threats



  • Registered Users Posts: 49 Wurley


    Oh wow. How scary. To be honest in our excitement and naivety i didn’t even think of this. I will enquire with the estate agent.



  • Registered Users, Registered Users 2 Posts: 69,537 ✭✭✭✭L1011


    The agent will tell you its all fine and dandy. Google, take a look at the folio or docs provided to your solicitor, ask around or whatever other stuff you need to do to find out who the old owner was.



  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    I've bought two other properties in receivership and no issues, the above is rare



  • Registered Users, Registered Users 2 Posts: 20,203 ✭✭✭✭Donald Trump


    I'd be a bit more wary if I was buying it after a CAB repossession.


    House "in receivership" sounds a bit unusual. What was the business?



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  • Registered Users Posts: 49 Wurley


    That’s great to hear. Is it a lengthy process?



  • Registered Users Posts: 49 Wurley


    what was the business??? I’m unsure what you mean by that.

    CAB repossession wouldn’t be good. Is there any way you could find out why?



  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Shortest closing time six weeks, longest was 12 weeks



  • Registered Users, Registered Users 2 Posts: 20,203 ✭✭✭✭Donald Trump



    Receivership is for companies - no?


    Or are you using it for someone selling a repossessed house for a bank?



  • Registered Users Posts: 49 Wurley




  • Registered Users Posts: 49 Wurley


    Is it just companies? Maybe I misunderstood. It’s very much a house.



  • Registered Users, Registered Users 2 Posts: 20,203 ✭✭✭✭Donald Trump



    It could still be in receivership if it was owned by a company


    Maybe I'm wrong and the term is also used for personal assets. Someone else on here will correct me if I am wrong hopefully



  • Registered Users Posts: 49 Wurley


    I’m not sure that’s the word the estate agent used. Im assuming the house was repossessed and the banks are selling it.



  • Registered Users, Registered Users 2 Posts: 28,330 ✭✭✭✭drunkmonkey


    Ask the EA for the folio if they have it, it will give the owners name on the top you can also get it yourself from landirect but you'll have to pay, think it's about 5 euro you'll know then if it's a bank/reciever and the previous owners will be listed.

    It can drag on a bit, some of the recievers can be tricky, will want proof of funds and proof of how you got those funds, If your trying to mortage it the EA and the Reciever might not have much intrest, I'd proceed as a cash but have a mortage agreed on the side.

    Check the plumbing and electrics inside out, could be surprise in there somewhere if the owners weren't happy leaving. There also could be an expensive electric re connection fee if it's been turned off a long time, have a word with Electric Irleand about that they may do something for you.



  • Registered Users Posts: 49 Wurley


    Hi Thanks so much. Unfortunately we are not in a position to pay cash. Thanks for the tips with plumbing and electrics. We know people in the area so will put out the feelers and see what we can find out.



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  • Registered Users, Registered Users 2 Posts: 28,330 ✭✭✭✭drunkmonkey


    Spend the 5 euro on https://www.landdirect.ie/ and you might find out some useful information.



  • Registered Users Posts: 728 ✭✭✭bertiebomber


    Definately look into the back ground of the people in receivership. I know a case where the person ( owner) went back & hung themselves in the property and the buyers were never accepted in the village and eventually sold it as the rejection & disgust towards them was palpable.



  • Registered Users Posts: 49 Wurley




  • Registered Users Posts: 49 Wurley


    I did and it says a man’s and woman’s name. If it were with the banks it would say the banks name right?



  • Registered Users, Registered Users 2 Posts: 28,330 ✭✭✭✭drunkmonkey


    Is there anything in the Particulars that's where the change would be listed...



  • Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,927 Admin ✭✭✭✭✭Toots


    If you look at the last page it should say "Burdens and Particulars" or something like that, and it will say if there's a mortgage on it. My one has myself and my husband listed as owners, but in the Burdens and Particulars it says that Bank of Ireland holds a charge on it, meaning it's mortgaged.



  • Registered Users, Registered Users 2 Posts: 4,329 ✭✭✭Homer


    That says more about the inbred clowns living in that village than anyone else lol..



  • Registered Users, Registered Users 2 Posts: 3,441 ✭✭✭NSAman


    if I am reading this right, it’s the same as a bank sale here in the states.

    bought mine for a very reasonable 😁 price. Inspections are key to let you know what’s happening and costs involved. Like many have said, do your homework and negotiate accordingly. It may be more difficult to do this, depending if it is truly a receivers sale (access) or bank foreclosure.

    it has worked out very nicely for us here. We did know what we were on the hook for and budgeted accordingly. 10 years later, it’s a beautiful home and a work in progress.



  • Registered Users Posts: 49 Wurley


    Oh right it has the bank ie BOI is charge, a line through it and then cancelled underneath and the date



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  • Registered Users Posts: 49 Wurley




  • Registered Users, Registered Users 2 Posts: 6,289 ✭✭✭Claw Hammer


    You are, of course, wrong. A receiver can be appointed over a property under the terms of its mortgage. There is in fact a statutory right to appoint a receiver in addition to the terms of the mortgage. It is not availed of in the csase of family homes because of the code of conduct on mortgage arrears etc but is used frerquently in the case of buy to lets. the majority of houses auctioned by Bidx1 are receiverships of buy-to let properties.

    The main issue for a purchaser is that the receiver cannot answer some of the requisitions on title and excludes himself from all liability and contracts out of important information. I would be surprised if the o/p succeeds in getting a mortgage to buy such a property. If his solicitor has to qualify the title (almost inevitable) a lender may well refuse a loan.



  • Registered Users, Registered Users 2 Posts: 20,203 ✭✭✭✭Donald Trump



    In the post I invited people to correct it as I was not sure on whether the word was used in that context.


    Anyway, your post kind of confirms what I said which I was asking what was the business. I said that it seemed unusual to be using that term. I had the impression that it wasn't used in the context of family homes. You confirmed that.

    Post edited by Donald Trump on


  • Registered Users Posts: 49 Wurley


    Thanks for clearing that up. So you would suggest that our mortgage provider will not go through with the funds as the house is now with the banks?



  • Registered Users, Registered Users 2 Posts: 3,131 ✭✭✭Ms2011


    We bought a repossessed property (rurally). We've had no issues with the locals, if anything it was welcomed that someone took on the property as it was standing idle for over 5 years and becoming an eye saw.

    The previous owners adult son had gone back after they left and stripped the house of everything, plumbing, kitchen etc. in a kind of protest but tbh it is an old house and everything would have needed to be replaced anyway so saved us a job of stripping out everything ourselves.

    We paid cash so we didn't have to deal with a mortgage and it took us 17 months from going sale agreed to close of sale.



  • Registered Users, Registered Users 2 Posts: 28,330 ✭✭✭✭drunkmonkey


    Is there nothing under that, i'd assume it should have been transferred to somewhere else if it's in receivership.



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  • Registered Users Posts: 49 Wurley


    17 months!!!! I hope it doesn’t take that long.



  • Registered Users Posts: 49 Wurley




  • Registered Users, Registered Users 2 Posts: 6,289 ✭✭✭Claw Hammer


    If the former owner co-operates, it will go through. Most former owners don't co-operate.



  • Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,927 Admin ✭✭✭✭✭Toots


    We looked at a house that was a receiver sale and the estate agent was very upfront about the fact that receiver sales usually take a good bit longer to go through than standard sales (usually because the former owner isn't being co-operative) The house that we looked at had been stripped on the inside - copper pulled out of the walls, entire kitchen ripped out, bathroom fittings removed and some tins of paint emptied all over the hall. This was a fairly good indicator that the former owner wasn't likely to be co-operative.



  • Registered Users, Registered Users 2 Posts: 1,823 ✭✭✭ballyharpat


    I've bought two repossessed houses, the first one took 5 months, not an extremely long time. The second one took nearly 7 months, it should have been done in 4, but the previous owner was holding out for 5k for non existent furniture. My sale/buying price would have been the same but the bank getting 5k less. After a lot of song and dance, another house came up across from it, so I gave them the choice to close in 4 days, by the end of that week, or I was buying the other house, I had the keys in my hand by Friday afternoon.I have a friend that has bought two also, and I'm sure lots more friends that have done it that it's not important to mention.

    Its very few sales that lead to repercussions after, there are tons of houses sold in receivership, and people love a good story, so we hear about them more often-like thousands of people driving a road every day, but we don't hear about them, but we do hear about the crashes. Personally, I wouldn't let it bother me.


    You're getting a house at a good price, enjoy it, keep the pressure on your solicitor to keep the pressure on their solicitor and auctioneer to keep pressure on the bank.



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  • Registered Users, Registered Users 2 Posts: 3,131 ✭✭✭Ms2011


    Ours was a bank repossession so the former owners had no say in how or when it was sold, it was the bank (AIB) that dragged their feet on the sale.

    It probably would have gone on longer only there was a storm and some of the trees on my property blew over and damaged the neighbours property which the bank was liable to repair. After that the bank just wanted rid and the sale moved on pretty quickly.



  • Registered Users, Registered Users 2 Posts: 6,289 ✭✭✭Claw Hammer


    Re-Possessed houses are different to receiver sales. there is less to go wron in a repossession case because the bank has a court order.



  • Registered Users, Registered Users 2 Posts: 716 ✭✭✭macvin


    Receiver is usually appointed to buy to let properties as they are bought as an investment and therefore are not considered family homes.

    If you look at any decent online auction such as bidx1 you will see many are receiver sales. Some are tenanted, some are vacant. I would not see much of an issue. Banks will have no issue giving a mortgage either.


    A bank repossession sale however may have more "personal" interest from a small number of people as usually that would be their home, but receiver sale is effectively an investment property sale.



  • Registered Users, Registered Users 2 Posts: 1,823 ✭✭✭ballyharpat


    Thanks, I didnt know there was a difference, as it turns out so, one was a repossession and one was a receivership.


    Thanks.



  • Registered Users Posts: 49 Wurley


    Thanks so much for the positive comments and information. It is very much appreciated. Good to know they don’t drag it out.



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