Does this sound right - house repossesion question

[Guns13]

This is my first post on here. Any help will be greatly appreciated.

 

I seen a house that I liked so I arranged a viewing, when speaking to the estate agent who showed me around she said the property had been on the market for around a year with very little interest and that the property was for sale because the owner went bankrupt whilst he was renting this property out.

 

Taking these few things into consideration I thought I would make a cheeky offer of 100k hoping that they would want a quick sale due to the bankruptcy situation (the property was on the market for 117,950). Two days later I rang the estate agent to see if there was any news she said she hadn't heard back from the trustees yet and in the end it took them a week to decide to reject my offer and make the decision to take the property off the market due to the property being in negative equity.

 

If you've got this far I thank you for your time and basically what I want to no is what do you think they will do now? Will they file for repossesion and therefore the property will be up for sale again shortly? If so how long would it take before its back up for sale? Or will they do something different?

 

Obviously the mortgage company want as much money back as possible therefore the only way I can see this happening is by them selling it. One thing I've thought of is will the trustees possibly take charge of the property and rent it out until the property price increases until they case sell it for what they need to take the property out of negative equity? Thanks

Edited April 8, 2015 by maroondevo52
Formatting

[p3t3r]

decision to take the property off the market due to the property being in negative equity.

 

If there is not enough equity in the property to repay the first charge (mortgage) and other secured debts, then its highly likely that they will not sell the property and the property reverts back to being owned by the bankrupt when they are discharged.

[SabreSheep]

Are you sure

 

I would imagine the trustees would sell it to recoup some of their money rather than nothing.

[Guns13]

Are you sure

 

I would imagine the trustees would sell it to recoup some of their money rather than nothing.

 

That's what I thought but it seems not

[joesoap]

That's something new I've learnt.

[p3t3r]

Are you sure

 

I would imagine the trustees would sell it to recoup some of their money rather than nothing.

 

hi, i am 99% sure, though happy if someone can show im wrong... i could be wrong! as far as i know, the trustee can not force the sale of property in bankruptcy if there is negative equity. they cant sell it to recoup their losses rather than nothing because all the money from the sale would go to the mortgage company or bank.

 

i think this would also work with BTL mortgage that op talked about, - negative equity = no point in sale

[Guns13]

hi, i am 99% sure, though happy if someone can show im wrong... i could be wrong! as far as i know, the trustee can not force the sale of property in bankruptcy if there is negative equity. they cant sell it to recoup their losses rather than nothing because all the money from the sale would go to the mortgage company or bank.

 

i think this would also work with BTL mortgage that op talked about, - negative equity = no point in sale

 

If the house is repossesion then the mortgage company would own the property therefore would they then be able to sell the property for whatever they can to recoup as much as possible?

[p3t3r]

If the house is repossesion then the mortgage company would own the property therefore would they then be able to sell the property for whatever they can to recoup as much as possible?

 

Yes, they would.

 

Mortgage company can use their rights and take repossession of property and force a sale to recoup losses.

The bankruptcy official receiver can't force the sale of the property if there is little point in doing so, such as negative equity.