Q. I have fallen in love with a property that is repossession and wondering what I can do to stand the best chance of securing the property above the other interested parties. I understand from the Agent that cash offers are received most favorably but I am not cash, will I still have a chance?

A. Repossession opportunities don’t come up that often and when they do you need to act quickly. Repossessions come to the market when a home owner defaults and is unable to continue with their mortgage payments and the bank/Lender steps in to reposesse (take back) the property. They will then accumulate some valuations from some local agents and then appoint the agent of their choice to sell the property on their behalf in order to ensure the banks funds are fully recovered where possible and sometimes just as much of the funds are recovered as possible depending on the market at that time. The agent will be given very precise marketing instructions by the bank and then a structured procedure for offers will need to be followed. You are right when you mention ‘cash’ offers being favourable; of course a buyer that does not need to secure funding is certainly given priority, although having said that a low cash offer will not usually supersede that of a more favourable offer that needs to arrange funding via a lender. Ultimately the bank wants to achieve the best price possible in order to recover as much of the lent funds as possible if not all. All offers will be looked at carefully by the agent and then sent on to the bank for them to consider. If you happen to be in a chain – have a related sale that the purchase is subject to your offer will pretty much be put to the bottom of the pile. Cash offers will be the first to be considered, but if there are higher unencumbered (chain free) offers from buyers with AIP’S (Agreement in Principle’s) in place these will also be given consideration. Proof of funds will be required whether by cash or AIP and evidence of a cash deposit will also need to be provided if you wish to be successful. In a nutshell the property will usually go to the highest bid that can proceed immediately, whether by cash or mortgage, ultimately the bank will be the one to make the decision.