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Repossessed House Auctions

Friday, August 26th, 2011



The average UK home costs around £200,000 whereas the average price of houses sold in auctions are around £130,000 to £170,000. This enables many people ranging from hard-pressed buyers to first-time owners to go to auctions for foreclosed properties. Thousands and thousands of repossessed homes are auctioned as banks and lenders are much more interested in selling the property rather than making a huge profit. However, buying in an auction needs a lot or preparation and planning so that you would not end up making a costly mistake.

Do the groundwork
It is wise to do your research on the property. It is best to check out the location of the property and the establishments near it. The neighbourhood and location can also determine the market value of the property so it is best to pay a visit and see it. Often catalogues and text descriptions will simply not paint a clear picture of the property’s condition. Paying a visit can give you a first-hand look at the positive and negative aspects of the property. Furthermore, visiting the house will give you an opportunity to take a builder to assess any future repairs that might be needed. It is also important to get a survey on the property for a basic evaluation to ensure the structural integrity of the property.


It is also best to get yourself acquainted with how a repossessed house auction works. It can become a bit overwhelming and nerve-racking to bid in an auction so it would be best to familiarize yourself with the process. You can also ask for a catalogue with the properties to be auctioned. This would allow you to research on what would be a fair price for the property based on other similar repossessed homes in the area.

Set a price limit
Set your highest bid and stick to it. Do not get pressured and engage in a bidding war – other bidders might push the price higher and higher and the property might not necessarily be worth it anymore. You should also estimate potential expenses such as repairs, redecorating, legal and surveying fees and all of these on top of your mortgage. There might be a buyer’s fee for the auction house. Additionally, there might also be tax fees that you would need to settle.

Arrange your finances and mortgage before the auction
If your bid on the property is successful, you would need to pay an initial deposit, usually 10% of the amount on the spot. It is usually paid using a cheque as cash is not accepted. You would need to complete the payment on an agreed date, or else your deposit will be defaulted. So it would be best to make sure you can get a mortgage before that date.

Over 300 companies run auctions for residential properties in the UK. The process of buying repossessed homes in an auction can indeed be very overwhelming. So make sure to do your homework to ensure that you are making the right investment.

Visit our repossessed house auctions homepage and click on your local area in the right menu bar to get lists of auctions close to you.

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Repossession of Homes

Wednesday, August 3rd, 2011



The UK property market is still in recovery but is maintaining strength by growing since the major dip in 2008. Most people in the UK still want to own their own property thus strengthening the real estate market. As reported by BBC news the Council of Mortgage Lenders stated that nine thousand four hundred homes were repossessed in the second quarter of 2010, four hundred less than the number of homes repossessed in the first quarter. The number of repossessed homes as well as the number of mortgages in arrears continues to fall. In the last quarter of 2010, homeowners paid off mortgages in a record rate. Some say that this is a newly-found prudence of Britain’s homeowners, probably learning from past experiences. Additionally, most homeowners opt to repay their mortgages rather than putting their money in a savings account as the interest rates in deposit accounts are in very low levels.

However, despite this upward trend, the real estate situation and financial crisis is still far from over. Lenders have been a bit lenient in the repossession of homes in recent years and have suspended a number of possession orders. Most banks lowered their interest rates to be able to accommodate homeowners who are at risk. Even so, there are still a lot of borrowers facing property repossession. In the first quarter of the year, a total of nine thousand one hundred homes were repossessed, which was a 15% increase from the seven thousand nine hundred homes repossessed in the last quarter of 2010.


Nonetheless, experts are speculating that we are on the brink of another financial meltdown, which would only mean that more and more people will be facing harder times. This is based on economic downturns in America and around Europe.

Repossession of homes is a problem that no one is exempted from. Until the problem of unemployment and job cuts is addressed, more and more people will still face the threat of losing their homes. If you are faced with the inevitable repossession of your home, there are a lot of websites and articles on the internet that can help you avoid or stop it. There are step-by-step guides in dealing with court hearings and bailiffs, and possible solutions such as selling your home or refinancing it. The government also offers assistance for repossession of homes such as the Mortgage Rescue scheme. Whatever your course of action will be, it would be best to be resourceful and do your research to be able to make a sound decision.

Always talk to your mortgage lender, never avoid their phone calls or letters. Most lenders are dealing with borrowers who also are experiencing difficulty, so you are not alone. Often they will aim to assist wherever possible, holding repayments off or providing more affordable repayments based on your situation, which can help avoid Repossession of Homes.

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Property Repossession Hotspots Identified

Friday, July 1st, 2011



New figures released by the FSA show that house repossessions have increased again in the UK, this being the first rise in over a year. Statistics for the first three months of 2011 show a 17% increase in the number of repossessed homes, rising from 8,246 to 9,613.

These figures are an indicator that our recession is still affecting the country hard. Mortgage lenders have taken steps to prevent the reckless lending which had been happening in recent years. Now less than 2% of loans are over 90% of the property value, whereas this figure was over 14% in 2007.

A new report by Shelter, a leading housing charity, has given details of areas in the UK which are now identified as property repossession hotspots. The map below gives details of which areas make up these hotspots. A hotspot is identified as an area whose homeowners are identified as being most “at risk” of losing their property. These are people who have been issued with a possession order.

 

 

The area which suffered from the highest risk was Corby in the West Midlands. It is estimated that 7.56 of every 1000 homeowners in this area are under high risk of their property being repossessed. The area with the lowest rate was West Dorset with 0.83 per 1000 homes. The highest areas were as follows:

1) Corby (7.56 per 1000)
2) Barking and Dagenham (6.62 per 1000)
3) Thurrock in Essex (6.16 per 1000)
4) Knowsley in Merseyside (5.68 per 1000)
5) Newham in London (5.57 per 1000)

Other repossession hotspots included Fenland, Harlow, Manchester and Peterborough. There is a correlation with these numbers and also the rise in unemployment over recent months.

Many people have blamed finance companies for these high rates, encouraging borrowing and thus pushing people to go above their means. Studies have shown the ultimate cause being the increase in people losing their jobs and a lack of increase in wages or even a reduction in their earnings.

Read the full Guardian article here.

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Repossessed Homes Auctions

Friday, July 1st, 2011



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.

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.

The internet is a great place to find lists of auctions located by region. This means that you can find repossessed property auctions local to you. 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.

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.

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Repossessed Property Auctions – Q&A

Friday, July 1st, 2011



Below are some common questions for property auctions:

Why Should I Buy At Property Auction?

There are numerous reasons for buying at property repossession auctions. All sellers at auction are motivated to sell and want to sell quickly. This often means that they are willing to sell their property at a low price. Often the residential properties will renovation work carrying out which means there is an opportunity for the buyer to make some money and also increase the value of their property. Also once the hammer falls at a property auction there is no chance of going back on a deal so there is a certainty of purchase.

Are there fewer costs in buying through auction or buying through an agent?

In both cases the fees tend to be similar, there will be legal fees and surveyors fees to payas well as any fees to pay in order to arrange finance. When buying at auction you will need to pay an administration fee to the auctioneers which typically falls between £175 and £300 plus VAT.

What type of houses are sold at auction?

The type of properties sold at auction are repossessed properties which have been repossessed by the bank or mortgage company. As a result the properties may be unmodernised or in need of work. These properties are often different to houses sold at normal estate agents as they may not be immediately ready to move into.

What are the risks of buying at a repossessed property auction?

The risks of buying at auction are similar to those of buying through estate agents. It is important to make sure that u have done all of your preparatory work on the repossessed property such as legal searches, checking the title and surveying the property to make sure there are no defects. The important thing to remember is that once the auction is over the deal must be followed through and you are not able to go back to the seller afterwards should any problem arise. There are no guarantees on the purchase and you must buy it as it is.

How do I find a bargain at auction?

The key to finding a bargain repossessed home at auction is to have the maximum number of options available to you. You should search auction sites on the internet and contact auction houses directly. Bargains are often properties which are not so popular, so looking for a property with defects or one which needs work can be a great option. However, its important to have the know how or ability to deal with defects so that it turns out to be a bargain and not an expensive bargain! When buying at auction, many buyers often leave with ownership of their property at a price much lower than what they were prepared to pay and in case this automatically becomes a bargain.

How can I identify repossessed homes at auction?

There are several things to look out for when identifying a repossessed home at an auction. Check the auctioneers catalogue. In some cases it will say “by order of the mortgagees”, in other cases it may actually say who is selling the repossession property for example a bank, so the catalogue will say “by order of HSBC”. In other times it will say “by order of the receiver”. These are all ways of picking up a property repossession home at auction. However, not all properties will have this information in the catalogue. If you suspect the property is a repossessed home, the easiest thing to do is phone up the seller’s solicitor and ask them who is the seller.

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Repossessed Auctions

Friday, July 1st, 2011



When banks and lenders repossess items from their clients who have not met their repayment obligations, they will generally use auctions as sale outlets. These auction outlets are the best place to get the best bargains for some of those items you have always longed to own. Items in repossessed auctions will range from homes to the basic of household items. All kinds of repossessed property will be found in a repossessed auction. I will share ways you can get the best deals while at a repossessed auction.

The first thing one needs to do is to make contact with repossession agents. They will help to keep you aware on the best repossessed auction. It may be through their input that you might just strike it rich courtesy of having been at the right place at the right time. They are also a source of expert information on repossessed property.

It is important to determine your budget so that you do not engage in impulse buying once at the bidding process. A budget keeps you within your spending means. It also reduces chances of you being the one who eventually ends up having their belongings repossessed! Overspending defeats the whole purpose of attending an auction, so avoid it.

Pick a repossessed auction that is accessible. It is easier to attend auctions which are near your residence than one that is far. It will be easy for you to get to the auction on time and bid for quality items and not left overs, as the case would be if you got to the venue late due to the long distance you had to cover. An accessible venue widens your purchase choices and makes it easier for you to ferry your goods to their intended destination. It is inevitable, in some cases, that a repossessed auction with the best sales is situated in an inconvenient area. In a situation like this, you will need to find the most appropriate means. The other thing to consider is the surrounding location of a repossessed auction. In general, repossessed auctions that are located in the well to do parts of the country will tend to have goods with pricey tags and of higher quality when compared to those in downtown locations.

Do your research to determine the general estimated value of the goods available. This reduces your chances of being ripped off. It is a good idea to attend seminars or workshops that will equip you with the basics of the auction process and enable you to walk away with the best buys. Read articles on the web and visit auctions and just watch. Practical experience is always extremely valuable when undertaking new tasks. Seeing how the process takes place and what is done will enable you to be more confident and successful when you attempt to carry out the buying process yourself.

It will be a wrong move to try to outbid everyone at a repossessed auction. You might end up paying high prices for unworthy repossessed items. This is certainly not the time to show off! Take your time and make the right move at the right time and for right item. Prices tend to fall drastically towards the end of an auction period and your patience may be rewarded with a prized repossession.

Once you identify the property or items you are interested in at a repossessed auction, make sure you pay on time to avoid repossession yourself! Always remember to look to make purchases that have a high return of investment. This will help secure your future dealings.

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Houses Repossessed

Friday, July 1st, 2011



When buying houses repossessed, you still have some way to go before you can completely be satisfied with your property. Purchased repossessed properties are bought for different reasons and by different buyers. We have families who will invest in repossessed homes to get on the property ladder and have a house of their own. We have property investors who will buy repossession homes with the intention to re-sell them in order to gain some profit. There are also property developers who have the intention to buy repossession homes in order to convert them to other uses. We all have different tastes and so it may be necessary to make some changes to your property to make you feel at home or increase the property value after you have acquired it. Property investors like to give a facelift to their newly purchased repossessed home in order to attract tenants or clients and get the highest price possible. There is no other better way to do this than to give your property that great new look.

When setting on a facelift project of houses repossessed, you will first need to have a plan. Planning will involve determining where the new touches will need to be done, how they will be carried out, persons to do the work and the time it will take to complete the work. You can decide to do the facelift work yourself or hire a contractor. It helps to use advisory services of a local estate agent or local council to determine the appropriate upgrades for your property that will be in setting with local neighborhood home values.

There are different ways you can give a new look to your repossessed home. This is generally done through repairs or re-modeling. One of the cheapest ways of doing this is obviously through painting and the results are immediately visible. Other ways include creating, adding or repairing the landscapes, roofs, fences, gates, path and driveways, garden furniture, pools, fountains and ponds. This creates a very beautiful outdoor appearance. Do not forget to clear the gutters!

For the interior of houses repossessed, changes can be made by repairing the doors and knobs, floors, walls, fireplaces and windows. Ensure all rooms have working and adequate number of electrical outlets. Re-flooring and walling using beautiful and natural materials like high quality wood, stone or marble is great. Another alternative is to use synthetic materials; there is a rich variety to pick from in the market. Decorate the interior of the house to suit your taste by being adventurous with colour, textiles and texture and various house decoration pieces and items. This is especially important in the living and sleeping rooms, lounges, kitchen, washrooms, and patios.

Work on the heating, lighting, electrical, plumbing and water systems to ensure that they are in perfect working order for both the indoor and outdoor facilities. Installing solar devices, safety and security systems is great improvement to houses repossessed. It is a good idea as well to clear such houses of all clutter and rubbish.

Upgrading of repossessed houses imparts a great and beautiful look to your home, increases property value, and when put up for sale, will sell very fast and bring in good returns. In the end, giving your new repossessed home that needed new look is an investment with great rewards.

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Avoid Property Repossession

Friday, July 1st, 2011



The current global recession that the whole world is experiencing was said to be contributed by United States housing bubble and subprime mortgage crisis. The United States real estate prices rose late 2005 and mid 2006 but was said to be illiquid. The market then experienced a drastic crash during late 2006. Banks became lenient and gave loans to people with a bad credit history. As a result, people were not able to make payments and their properties were up for foreclosure. According to sources, last year alone, the number of homes up for repossession ran into the millions. Large numbers of families are facing this financial dilemma and hope seems distant. Even if home owners are willing to make payments, they are often not able to do so because they are laid off from their jobs. In this dwindling economy, how could one avoid property repossession? There are a lot of methods and tips you can implement to stop your home being repossessed but circumstances will vary. This article will discuss a few tips on how to avoid property repossession.

The very first step is to know when you’re in trouble and face the problem. A lot of people already know that they are in trouble but refuse to accept the consequences. They think that if they ignore the problem long enough, the problem will go away. But it is the exact opposite of reality. One should be in constant communication with the bank and inform the bank if they are not able to make payments. Banks nowadays are more cautious and vigilant of a borrower’s payment history. Most people will only contact the bank if they have missed two payments. It is best to contact them as soon as you’re not able to make a payment just to reassure them that you have every intention to do so and that you are not escaping your responsibilities and debt. Some banks will be willing to make special payment options or arrangement to avoid your property from being foreclosed. If this is your first time to miss payments, the bank will more likely be willing to give you payment extensions. It’s important to remember that a bank will only repossess a property as a completely last resort, often they will be extremely willing to assist as they are aware of the state of the economy and the number of people who are experiencing financial difficulties.

If in case you have failed to come to an agreement and you are not able to make payments as well, the bank will most likely send a demand letter for payment before ensuing repossession proceedings in the court. The second tip to avoid property repossession is to diligently attend repossession proceedings. Again, this is the same concept as the first tip—to be in constant communication with the lender. Your regular attendance to these proceedings will be taken in positively and the hopefully an arrangement will be agreed on between you, the court and the bank. A Suspended Order for Possession can be ordered by the court if an arrangement is agreed on. If you don’t attend these proceedings, this will be deemed negatively by the court and the bank or lender as well. The court will have no choice but to rule in favour of the bank and order your property’s repossession.

If in case you were not able to make an arrangement and the court ordered repossession of your home, a bailiff will be sent to your house for lock up. In the event that a bailiff is set to visit your property, the following tips can be followed. You can make a last ditch effort in negotiating payment to the bank or the lender. If you can pay off your monthly mortgage and make an arrangement with the arrears, the foreclosure might be postponed. Some banks or lenders will require you to settle all your arrears, in which case you can come up with contingency plans such as borrowing money from friends or family or from another lender. You can also remortgage your house with another bank or lender if your house is worth more than your outstanding balance.

One of the best options is to sell your house. You can choose to sell it through a real estate agent so that it could be sold for the best price. However, this might take time and you might need to shell out some cash to renovate your house to attract potential buyers. Alternatively, you can sell you property fast through cash buyers. However, the resale price might not be as high as the market value. But this would be the best solution if you are facing property repossession as this would allow you to pay off your debts and still maintain a relatively good credit history. Some people choose to sell their house and rent it again from the new owner so that they could be saved the trouble to finding a new home and relocating. This is a great way to save face to your neighbours and friends that you are undergoing a financial crisis.

The government also offers assistance to qualified families through financial aids. There are certain criteria that need to be met to qualify for the financial aid. For instance, it needs to be evident that you will have absolutely no means in paying off your current debt and that property repossession is inevitable. They should also display willingness in settling debts and that they did not miss payments intentionally. They should also not have more than one home to qualify for this financial aid. Once you are qualified, you can refinance your home with more flexible terms with the government.

We are indeed living in very stressful times wherein one can lose hope with their current financial situation. Avoiding property repossession is something we hope we would never face but it is important to know your options so that you will be ready if it ever happens to you. As previously emphasized, it is important to face this problem head on rather than avoid it. Avoiding it will only lead to the total foreclosure of your home. With the help of your family, friends and also your government, one can rise above these traumatic times and still keep a roof over their head.

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Tips For Buyers Of Repossessed Homes

Friday, July 1st, 2011



There are some useful tips for those who wish to get the most out of repossessions, particularly at property auctions. Some of these helpful tips are:

  • The price tag of the repossession should be within your budget limits.
  • Make sure you take time to view the property repossessions you have expressed interest in. During such a visit, it will help to have an expert who will confirm the value of the repossession and check its condition.
  • Make enquiries on what caused a property to be repossessed. This is because some of these properties may be in poor condition and some may be in poor locations. Take time to do your research on the property of interest.
  • If the repossession is a home or building that you will want to rent out, ensure that it will meet the needs of your tenants. You will also need to decide whether you will be directly involved in managing this property or you will need the services of a property agent.
  • If you are interested in property repossessions that you will use as rentals, during the initial stages you may need to have your rents set at a lower price to get tenants. You will also need to spend some money on maintenance to attract tenants.
  • Consider the costs involved in acquiring property repossessions. This will involve the renovation maintenance, insurance, auction fees, taxation and legal costs.
  • Understand the repossessed properties auction process. Learn what is involved in bidding for a property and how an auction works. Some people get their fingers burnt – don’t be one of these people.
  • Have a maximum bid price and STICK to it.
  • Dont be drawn into bidding wars.
  • Most importantly, don’t rush into hasty decisions. It is always important to do your research and

Property repossessions should be given a positive perspective as a source of unbeatable bargains for potential property investors and buyers, as well as those already in the business. It is said that when one door closes on a person, another

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Property Repossessions

Friday, July 1st, 2011



Property repossessions are a common phenomenon in today’s world. Home repossessions are the most common property repossessions in recent times due to the economic credit crunch. They commonly occur when people encounter mortgage problems as their financial circumstances take a change for the worse and as a result are no longer able to commit to their financial obligations. This comes about when someone purchases a property but falls behind on secured loan payments. Rising property repossessions, as well as rising unemployment, have caused a lot of untold misery to home and other property owners as they are driven into unbalanced equity every other day. This may occur for such property items like vehicles, homes, business premises, equipment, to name just a few.

Property repossessions can occur both at voluntary or involuntary levels. At a voluntary level, property owners can decide to have their property repossessed after revising their finances and prioritizing their financial obligations. On the other hand, they can be at an involuntary level when the person or persons involved encounter financial problems. In this situation, property will be repossessed if one fails on their loan payments, and auctioneers will only be happy to offer more repossessed properties to their clients. In the first instance, banks or lenders execute property repossessions. Auctioneers are then hired to sell the repossessed property to get back the unpaid loan. Time is usually of essence and such sales are made within a specified time frame, usually a very short one. This means that property is sold at a throw away price and not at market value.

Property repossessions can be a sad moment for the individuals involved but this can also benefit anyone looking to invest or acquire property. A repossessed home can be a good alternative for those who shy away from investing in the stock market. Such repossessions make good deals for those looking for great bargains and they are becoming very popular for property investors. For property investors, property repossessions can be looked as an opportunity for one to buy property at a throwaway price and resell to get some good profits.

Repossessed properties also give the opportunity to first time buyers to acquire property at an affordable rate, especially in an arena where prices are very high. The sale of repossessed homes are mostly executed via auctions which can be both online or offline. One can use catalogues to get more information on the sale of the these houses or use the internet search engines. Catalogues can often be obtained from local auctioneers or estate agents who organise the resale of the properties.

Most times, it may not be easy to identify repossessions at a property auction as most lenders, including banks, more often than not, will not allow this to happen. In such a case, one will be guided by auction catalogues. The auction process, however, is not so straightforward and those who are inexperienced can often find themselves paying well over the odds, so it’s important to learn the process and what is involved.

Read our tips for buying property at repossessed home auctions.

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