To bid or not to bid
Question
I have had an offer accepted on a property that has been repossessed. I heard that people can only view the property a week after the acceptance, but they can outbid you up to the time of signature. Is this correct?
Answer
The mortgage company or bank that repossessed the property (known as the 'lender') has a duty to the previous owner to get the best possible price for the property.
So unfortunately, in your situation they can continue showing the property to other potential buyers, and the lender that repossessed the property can accept any higher offers until the sale is completed.
When you make an offer on a repossessed property, the lender selling the property can insist on publishing a 'notice of offer' in the local papers. This is a formal notice saying that they are still willing to accept higher offers from other buyers by a certain date.
If a higher offer is made, you will probably lose the property unless you can match the offer - this may seem unfair but it is completely legal.
For further help or advice with the purchase of this property you could consult the solicitor dealing with the purchase. If you don't have a solicitor, or you're not happy with the one you have, you can search for details of local solicitors on the Community Legal Advice or Law Society websites.
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Updated: 09/02/2010
Question answered by Shelter
