The current economic crisis is hitting a lot of people in the UK hard. With increasing unemployment and the situation for the immediate future looking bleak, many people are being crippled financially.
With better times over recent years, many homeowners may have aimed slightly higher than their budgets would allow, with lenders providing 100% mortgages and excellent packages, buying property was never easier. Many did not consider the possibility of circumstances changing when they bought their home and agreed to higher monthly repayments in the good times. Changes in situations can mean financial difficulty can occur very quickly. For example, the sudden loss of job, a change in income, divorce, death, illness – these are all factors which can result in the amount you were earning becoming less.
Changes in circumstances can ultimately lead to property repossession. Failure to keep up repayments can mean your lender going through the repossession process.
Read our guide on what is home repossession? for further details of what actually happens in the repossession process.
There is a well known saying, “One man’s loss is another man’s gain” and this can be applied to the procedure of property repossession. When a person’s home is repossessed, they will have the pain and suffering of losing their property following eviction. The property will typically be auctioned at a cheaper price, which is ultimately where the gain comes in for the new buyer. The new buyer will usually buy this property at a repossessed property auction.
Repossessed property auctions are becoming more and more common. They are being held regularly across the country as investors or potential buyers are taking advantage of bargain prices of property. Due to the fact that lenders will be looking to sell a property quickly in order to recover losses, the best place for them to sell is at a property auction. These ensure a house can be sold quickly as the entire process from bidding to exchange can be completed within a month. The other advantage for the sellers is that there are no refunds, so you cannot change your mind once the hammer is down.
Repossessed Homes UK has put together a list of auctions located by region. This means that you can find repossessed property auctions local to you. Simple click on the regions on the bottom right to find links to auctions categorised by area. It’s worth contacting the auction to find out when the next auction is and try and obtain a list of the properties due to be auctioned. This means you can carry out full research so that you are prepared when arriving at auction. Be familiar with the bidding process and make sure you are aware of any fees involved.
Read our guide on Buying A Repossessed Home at Auction to pick up info on how to go about buying repossessed homes.
Another good place to pick up repossession properties is by contacting your local estate agency. They often work in conjunction with auctioneers to put together auction events and sell local property – often repossessed houses. Maybe try getting to know a local estate agent in the area you are thinking of buying in. See if they can contact you once they come across any bargain properties before they go to market and therefore you can get in there first.
