What does it cost a bank to repossess & dispose of a property?

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ClubMan

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Just looking for a ball-park figure for the costs incurred by the bank when repossessing and dispossessing of a property if anybody has any ideas. Either a figure or as a percentage of the property value.

Thanks a lot
 
The legal costs are around €2,000. Solicitors provide the service in bulk to the lenders.

Disposing a property would be the normal costs of auctioneer and solicitor - ballpark around 3%

There is also a security cost in minding the vacant property. That would depend on a few factors.

I would say that the overall cost would be around 10% of the sale value.

If the property is in positive equity, of course the mortgage holder pays

Brendan
 
I would imagine that it costs a lot more than a normal sales procedure. Unless one has seen an actual bill based on this it would be very hard to know. It probably is hidden in the procedure whereby the sales prices deducts mortgage, mortgage arrears, costs of courts for repossession, cost of bailiffs, interest on interest for arrears, repossession solicitor, sale solicitor, auctioneer, agents etc etc.

I have a sibling in this process, disputing all the way, but it seemed to me there was so many costs, rent receivers etc that on a property in massive NE with arrears that the only person going to make money out of the whole thing was most certainly not the bank. Probably in Dublin with expensive property it's different.
 
Thanks for the comments.
I realise it's a difficult one to get a clear handle on but I was just looking for a rough idea.
 
The costs will be less if it is a voluntary sale. House will look better, meaning it will make more, no need for extra 'agents' etc.
 
Clubman,

On one here were loan outstanding was k201.
Property was sold for k121
..............................................................
Gross proceeds k80
................................................................
But by time everything was squeezed out Bank got net k63.
............................................................................
That shows a Percentage of 22% .
This was an awkward one so costs may vary from (handy) cases 10% to circa 20% on (awkward) ones.
 
Thanks.
So - possibly dumb questions..

(1)
Borrower owes €200K.
Lender repossesses.
House sells for €150K.
Repossession/disposal costs are €20K.
Does the lender chase the borrower for €50K or €70K?

(2)
Borrower owes €200K.
Lender repossesses.
House sells for €250K.
Repossession/disposal costs are €20K.
The lender pockets the €30K excess and the borrower gets nothing?
 
I just had a property sold out of receivership. Total costs on a €90k sale were just over €6,000 (added to the shortfall). Ironically I could have sold it 2 years ago for €95k with €2,000 costs.

As to the "dumb questions".
(1) Lender chases borrower for shortfall plus costs. In your scenario that's €70k
(2) Lender takes costs from sale and sends balance to borrower. In your scenario that's €30k.
 
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