Have you bought a reposession? - Follow up

[FirstTimeNervous]

Hi,

Thanks for all of you who read and responded to my earlier post.

I have follow-up news, but not a good one...

As it is a repossession, I was given 28 days to exchange contract. Every document is ready and I even signed the contract with my solicitor, ready for exchange.

The only missing information is whether there is outstanding service charge on the property. My solicitor has contacted the seller/bank's solicitor, who promised to look into this.

Then, out of the blue, the seller's solicitor phoned my solicitor, saying that the current 'owner' has somehow found the money to repay the mortgage. So the bank 'had no other option' but to return the house to him/her.

This happened on Day 27, when all's ready on my side.

I am disgusted. Though I knew that I may be outbid any time before the exchange, I knew nothing about the current owner coming back! This risk is not mentioned anywhere in any documents I received.

Has the bank acted legally on this? Is there any protection for buyers like me? Am I going to lose the flat, and all the survey, solicitor, mortgage fees? Back to square one?

Please help.

Thanks,
Jane.

[brian]

Banks are legally obliged to get the best deal for the property, with additional pressure from the government not to repossess.

[FirstTimeNervous]

Thanks Brian - no doubt repossession is a sad business...but in our case, there was no higher offer, but the bank simply decided to withdraw the sale, and it was delays on their side that made it impossible to exchange the contract. Is this legal?

I think this is an important question for all of us - if banks can withdraw sales after the properties are already on the market, it's probably wise for everyone to keep away from repossessions.

Any advice appreciated.

[Kaz]

I think what happened to you is quite rare and you shouldn't let it put you off buying another repossession. Have you considered buying from an auction where you exchange on the fall of the hammer so you wouldn't have all that worry.

I personally think that the bank was quite right to pull out and give the house back to its owner if they found the money they needed. I imagine they had a moral obligation to do so if not a legal one. Afterall, any seller can pull out of a sale prior to exchange for any reason.

I wish you better luck next time.

[FirstTimeNervous]

Hi Kaz,

Thanks and I completely agree... in a new round of house hunting and fingers crossed.

Jane.