There's a house near me that has recently been repossesed, I know how much is owed on the mortgage and who holds the mortgage. I would like to approach the mortgage company and make an offer, I was wondering if anyone has any experience of this as to what % they will accept of the outstanding debt, eg 65%, 70%. The company is Kensington if it helps. Thanks guys.

 

Depends , sometimes it will goto auction , best to contact them mate

 

They will usually engage the services of a local Estate Agents .. Keep an eye out for them visiting

 

They wont accept any % of the outstanding debt. The house will be re sold and they will make market value, reason why you can easily get credit if you're a home owner. Pure profit if you default.

 

I have bought quite a few repossessed properties in my time and have only successfully acquired a couple pre auction. If you know who the mortgage is held with contact them and ask who their disposal agents are then contact them. Don't think you will pick a place up for 50% of its market value as that very rarely happens but make an offer of 87.5% of valuation and that *should* get it.

 

Thanks for your input guys, especially Cam, atleast I have a better understanding of where I stand. I'll get on the phone tommorow.

 

By law they have to be seen to get the best price possible for the house, in order to minimise the debt to their Customer.

Normally they will do this through Auction as it keeps them within the law of obtaining the best offer, however, if they think they will get a good price for a property they will try selling through a local agent first (this is whats happened to my friends house that has just been repossessed, they have advertised the house for the amount outstanding on the mortgage).

It cant hurt to register your interest with the Mortgage company, they may just point you in the right direction.