House buying advice

toyotacelicagt4 · 18 Apr 2008 at 18:14

Hi all,

I'm after a bit of advice regarding a house we just looked at. Its up for sale at a really good price, the location is perfect but the snag is that the house has been repossesed due to the last owners not being able to keep up the mortgage payments. I know this will have a effect on credit ratings but is there anything else I need to know?

Thanks in advance.

Chaz

ScoobyDoo · 18 Apr 2008 at 18:43

Nothing else to know really.

As you say it will have a effect on the credit ratings for the property but if your not after getting credit then this shouldnt be a problem.

The only other thing to watch out for are the previous occupiers. Its been known for some to have a grudge against the new occupiers and damage to be caused.

99% theres no problems and they just move on and accept it.

With all the credit crunching going on at the moment there will be more and more properties on the market from a repo.

Some people say its bad taste and your gaining from someone elses misfortune.
That's life im afraid, if you can get a bargain, go for it.

Brum Man · 18 Apr 2008 at 19:21

toyotacelicagt4 said:
I know this will have a effect on credit ratings but is there anything else I need to know?

Credit ratings are linked to people not houses so it will have no effect on your credit rating as long as you inform all the correct utility people/electoral role etc that you now live there and get everything correcly registered.

It is a mis-conception that houses are 'blacklisted'. This may have been the case years ago when cedit reporting wasn't particularly advanced but that's not the case anymore. The only way they could ruin your credit rating was if you were to have a 'financial connection' with them, for example a joint current account/utilities and such. Just moving into their old house will have no effect.

paradigm · 18 Apr 2008 at 19:21

Credit scores haven't been linked to properties for decades now.

Gepetto · 18 Apr 2008 at 19:31

Chaz, as far as I know, buying a repo will have no effect on your credit rating whatsoever. Credit ratings are specific to people now, not postcodes. Any gripe the previous owners have should be with the mortgage lender, and not with any buyer, although there is no accounting for some peoples logic.

The chances are that any repo will be vacant, and the owners long gone, before the buyer gets a chance to move in, but you must be aware that the defaulting borrower does have the right to settle their debt, and move back in, if they can do this before contracts have been exchanged.