Hi guys,

I have a question, I've just completed on my first BMV deal which dragged on for 4 months, as the vendor got repossessed and I ended up buying from the lender. The deal was to make sure he got some cash out of the deal and rent the property back.

As he got repossessed so he is no longer in the property. I’ve asked him for a deposit and one months rent to move back in. However he has no money and is waiting for the funds from the sale (it’s been a week so far).

1. Should I stick to my word, be ethical, wait for him and lose money waiting?

2. Or the fact he’s been working since Aug 07 and has no money to show for it, he’s never made a mortgage payment and now is waiting for the funds from the sale to afford the deposit and rent? Should be ringing alarm bells?

Ps. He is getting about £4K back. Rent is £680pcm and I’ve asked for a deposit for £2040 to cover any potential miss payments.

Thanks
Narinder

Narinder,

How much BMV did you get this and how much did you cash out?

The questions you are asking are legitimate, but really should have been addressed before you agreed to SRB.

You also didn't buy from the lender, you legally bought form the vendor and with his authority, this is demonstrated by the fact that the property has not been on the open market.

The vendor has demonstrated his committment to Renting Back by agreeing to a BMV sale and IMO a deposit is unnecessary and perhaps a little mercenary.

Phil

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Quite agree with Phil

Thanks for the reply Phil,

Becasuse of cost of repossession & additional arrears it worked out to be 10% BMV and it was a money in deal.

IMO? not sure what that means.

Narinder

IMO = In My Opinion

__________________

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option 1 - if you can afford it.