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What is Property Repossession

Friday, July 1st, 2011



Property repossession may possibly be one of the most stressful and traumatic events that one might go through. The constant pressure from the bank or the lender to pay your mortgages and arrears can cause emotional and physical distress to you and your family. According to recent figures, the UK property repossession rate has almost tripled since 2006. For 2009, a total of 46,000 homes were repossessed in UK alone. Thousands of families are left without a home and are facing a huge financial dilemma. Often, homeowners are simply not able to make payments as a result of losing their jobs or a change in personal circumstances. Indeed, the current global recession the whole world is experiencing has a lot of repercussions and no one is exempted. If you are a homeowner and believe you might inevitably face this problem, it is important to know the process of property repossession. This is so that you know your options and you can make informed decisions.

Before anything else, it is important for any homeowner to know when he is in trouble. Some people might wait after they have missed a few payments before getting in touch with the bank or the lender. It is always best to face the problem head on. Delaying to get in touch with the bank will only cause bigger problems. Currently, banks are even more vigilant of a borrower’s payment history due to the increased number of clients falling behind their mortgages. If you are not able to make payments, contact the bank and let them know of the situation. If you have a good credit history, some banks will even be willing to arrange special payment options to avoid your property from being repossessed.

If in case you have failed to come to an agreement and you are still not able to pay your mortgages and arrears, the next step the bank will take is to send a demand letter for payment. If after being sent a demand letter for payment and you are still not able to settle your outstanding balance, you will be required to attend repossession proceedings in the court. It is always best to diligently attend repossession proceedings as your regular attendance to these hearings will be taken positively. Hopefully, the court and the bank or lender will see your desire in settling your debt and a special agreement or a Suspended Order for Possession can be ordered by the court. If one does not attend these proceedings, this will be taken against you and the court will have no choice but to rule in favor of the bank and order your property’s repossession.

At this point, a bailiff will be sent to your house or property for lock up. All hope is not yet lost. You can still try to negotiate payment to your bank or your lender. If in case you can pay off your monthly mortgage and arrears, then the bank might postpone the foreclosure. Another option is to remortgage your house with another bank rather than letting it get repossessed. If your house is worth more than your outstanding balance, there are banks that will be willing to remortgage it. Alternatively, you can sell your house on a cash basis but the resell price might not be as high as the market value. However, selling your house will allow you to pay off your debts and can clear some of your bad credit history. If in case you are unable to remortgage or sell your house, the bank will repossess it and will sell it in a repossessed home auction. The bank will recover its losses by selling your house in an auction even if it is only for a bargain price.

Certainly, no one would ever want to go through property repossesion. But it is important to know what to do if in case it would happen to you so that you can make wise and informed decisions. The important thing is to take responsibility and action before it is too late. Never ignore your lender and hope the problem will go away, the more you communicate with them, the less chance your home will be repossessed.

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Repossessed Property Auctions Guide

Friday, July 1st, 2011



If you are a first-time home owner and are looking for buying properties at a bargain price, then buying repossessed homes in auctions are a great option for you. In 2009, over 46,000 homes were repossessed in the UK and this has given opportunity to first-time owners to take advantage of the situation. Repossession properties are often sold under the normal market value which can provide big savings. This short article will give you useful tips to help take the right steps to take advantage of these savings at repossessed property auctions.

1) Do Research
First, it is always best to do research on the market to find out what prices are a good deal. Many repossessed homes are advertised by banks through their local bulletin boards and local newspapers. Banks will advertise a ‘Notice to Offer’ regarding repossessed homes in the hope of getting higher bids from prospective buyers. It is best to check online with the different repossessed houses that are offered so that you can check and compare the prices. You can also order catalogues from auction organisers so that you can browse what is available ahead of time. Additionally, you can also contact your local real estate agent for repossessed home listings.

2) Arrange A Visit
If you have found a home that you like, it is always best to visit it before the auction. One must bear in mind that repossessed houses are not always in good condition. Most previous owners would not have the money for maintaining the house and therefore would have a few kinks such as leaking rain gutters and the likes. It is best to take with you a professional surveyor so that they can assess the structural integrity of the property. Visiting the house would also allow you to check the location and neighborhood. It is best to check accessibility and safeness of the neighborhood.

3) Auction Tips
After visiting the property, it is also best to visit an auction for a trial run. This is especially important if you are a first time bidder. This will help you acclimatise yourself with the process. As with any auction, it is best to keep your cool, even if you have another bidder going up against you. Beforehand, you should determine your maximum price and stick to it. In auctions, one the hammer goes down, the deal is closed and most of the time, you would not be able to back out. At times, there will be other bidders who will push the price higher and higher exceeding the property’s actual value so make sure you don’t end up being dragged into a bidding war.

4) Deposit and Fees
If you have successfully won the bidding, you will need to fork out a deposit of 10% at the day of the auction which will be lost if you do not push through with the purchase. Most transactions will be required to be settled within 28 days of the bidding. It is important to give a sufficient buffer for your budget for other additional fees. Survey fees will be essential so that the property can be surveyed for its current state. This is not something that a home owner can skimp on. Additionally, most auctions will also require you to pay an administration fee to the auctioneer which typically falls between £175 and £300 plus VAT. For stamp duty, the home owner will have to pay 1% for properties costing between £175,000 and £250,000 and 3% on properties costing between £250,001 and £500,000 and so on. You might also need to pay Solicitor’s Fees when processing the legal documents of the property. Aside from these costs, one should also take note of other costs such as legal costs, renovation costs and insurance costs. Some properties will also have balances with water, electricity and gas bill or would even entail you to have it reconnected. Therefore, it is important to have sufficient funds to sort it out. If you will mortgage the house, you should also prepare for future mortgage payments so that hopefully, the same fate of property repossession will not happen to you.

Buying repossessed properties might seem daunting and intimidating at first. But there are a lot of agencies and web sites that one can visit to do research before engaging in such purchases. www.repossessedhomesinfo.com contains a lot of information regarding property repossessions. It is also best to seek assistance from other home owners who have purchased their homes from these kinds of auctions to be able to get tips and advices in buying repossessed properties.

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Repossessed Homes Info

Friday, July 1st, 2011



As a result of the credit crunch and global economic crisis, many homeowners have found themselves struggling to take on the responsibility of making mortgage repayments. Due to a loss of employment or a change in financial circumstances many homeowners are becoming the victims of property repossession. Having your home repossessed can prove to be a huge strain on even the most resilient people. Knowing what steps to take in order to avoid repossession can prove to be vital but many people are unsure where to obtain this information or which organisations can help.

In 2009, over 45,000 homes were repossessed in the UK and this figure rose to over 66,000 in 2010. In the same year over 1 million properties faced foreclosure in the USA. With no immediate sign of this current recession ending in the forseeable future, both countries can expect their residents to have their properties repossessed.

Repossessed Homes UK provides useful help and advice as well as links of organisations providing their services in order to assist those in financial diffiRepossessed Homesculty and are facing the prospect of their home being repossessed. If you are one of these people, visit our links and advice page to get in contact with organisations providing help.

It’s important to remember that mortgage companies are also aware that their clients often run into financial difficulty and repossession of a home is usually the last option they will undertake. Often they will look to try and provide assistance in the form of new payment terms or dates. We always advise to keep in regular contact with the finance company, taking the steps of “burying your head in the sand” and hoping the problem will go away will be detrimental to your situation. If your property is repossessed, the lender will look to sell the house or apartment in the quickest time possible in order to prevent more losses. The property may be sold at a lower rate than market value and then you will be liable for any shortfall and costs incurred. Click to view the repossession process explained in simple terms.

On the other side are those who are looking to benefit from another’s misfortune. Once a property is repossessed, it is often resold on the market at a much reduced rate. Knowing where to buy repossession properties can enable a potential sale to be carried out at a much reduced rate and you could pick up a bargain repossessed home.

Take a look at our UK lists of auctioneers and companies offering repossessed properties. These can be found at the bottom right of our homepage.

Our site provides guides on buying a repossessed property and where they can be purchased in your local area. Often properties are sold in auction at massive discounts but knowing what to do and how to carry out the buying process is important in order to avoid paying over the odds. Visit our guide on buying repossessed homes from auction to get you started.

This site has been produced in order to provide further information regarding repossessed homes including help and advice on what to do if your home is being repossessed. Having their property repossessed can often have a huge impact on an individual’s life and it is often difficult to find helpful sources of infomation or know who to turn to for help.

Our links and advice section will help get you started.

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Dealing With Repossessed Homes Bailiffs

Friday, July 1st, 2011



Property repossession is something that no one will ever want to go through. Aside from the financial trauma, a person and his family can also suffer from the emotional trauma. The stress of having to deal with the repossession proceedings and bailiffs can truly test one’s mental and physical strength. This is not taking into consideration the shame of having a home bailiff lock away your house for every single one of your neighbours to see. Having said that, it is important to know the basic rules and your rights when a bailiff is sent to visit your property.

If you have failed to come into an arrangement with your bank or lender, the court will order repossession on a specific date by which you have to move out. If in case for some reason you do not leave by the specified date, the bank or lender has every right to lock up your property and send a bailiff to evict you. One should not lose hope to save their property. It is important to find out the exact date and time of the eviction so that you can prepare ahead. The bailiffs will usually come to your property within normal working hours and inform you of this and sometimes ask if any special arrangements need to be made such as special transportation for the elderly or disabled. In special circumstances such as an ill family member, you can try to apply in court to delay the bailiffs’ eviction.

However, if eviction is inevitable, one must know what bailiffs can do and cannot do. First, bailiffs can physically remove you from your property and use force if necessary. One must note that the bailiffs still have to act judiciously and reasonably. If in case the bailiffs come to your property and you are not at home, the locks will be changed to make sure the owner will not be able to get back inside. The bailiffs will not have the right to remove or confiscate your furniture or other home appliances unless ordered by the court. You can move your belongings out of the house before the eviction date. If in case you are not able to remove your belongings from inside the house, the bailiffs will be forced to lock it inside and you would need to coordinate with the bank or your lender on when you could get them on a later time. If you fail to make these arrangements, the bank or your lender will have the right to dispose of them.

Even at this point, you can still make a last ditch effort in raising the funds to pay off your mortgages and arrears to stop the eviction. You may seek your relatives’ or friends’ help in raising funds or perhaps sell your home fast through a real estate agent or cash buyers. But it is important make sure to do all this before the eviction date and if not, have a back-up plan for your relocation arrangements.

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Repossessed Homes Myths

Tuesday, January 26th, 2010



A new article by Real Estate expert Andy West, helps to clear some common myths regarding the purchase of repossessed homes. Read the full article here.

When it comes to purchasing a home, especially in this economy, you need to make sure that you’re getting the best deal for your money. One of the greatest opportunities available to home buyers, particularly new home buyers, are bank owned homes. However, popular thought often has a negative view on bank owned homes that prevents many buyers from considering them as options for their purchase. This negative social attitude is the result of myth and stereotypes that are not just untrue but positively ludicrous. Some of the most pervasive myths about buying a lender owned home are examined below along with what the real story on these affordable homes truly is.

Myth one: repossessed homes are run down. This may be the most common myth about bank owned homes. The unfortunate assumption is that if the home is owned by the bank then the person who couldn’t pay the mortgage also wasn’t able to pay to maintain the property. Even if this were to occur, which most of the time it doesn’t, the homes are open for inspection by potential buyers and maintenance of any run down or damaged items can be incorporated into the contract for the bank to fix them before closing. Just because you purchase of bank owned home doesn’t mean you’re purchasing a lemon or fixer upper!

Myth two: repossessed homes are undesirable or in bad neighborhoods. The assumption behind this myth is that successful rich people don’t default on their mortgages, so the only homes for sale for the bank are junky little trailer places. Yet nothing could be further from the truth. Unfortunately, the recession has reached all levels of society from the poor to the rich. A person defaulting on their mortgage has little to do with their socioeconomic position and more to do with a series of financial catastrophes that can happen to anyone. Bank on homes are available across the spectrum from small one bedroom units to large mansions.

Myth three: it’s a longer process to purchase a bank owned home. If you think that the bank is not a motivated seller, then you better think again. From the bank’s perspective, any property they have to repossess and resell is not just a source of unearned money, but is actually a drain on their resources. Every quarter the bank doesn’t have a buyer that home, they are responsible for taxes on the property as well as the maintenance to keep it looking desirable for any potential buyers. Banks want to get rid of their inventory of vacant homes fast to make a profit and also start up a new lending relationship that will be financially beneficial to them. This is why they are often willing to make huge concessions in the contract, from a ridiculously low price to the payment of the home owner’s association fees to making substantial renovations on the interior just to get you to close.

As you can see from these three myths above, there’s a lot of misinformation out there on repossessed homes. And in a situation like this, what you don’t know can hurt you, the least in the wallet. Bank owned homes are wonderful options for people who are looking to invest in property, purchase their first home, or pick up a vacation home somewhere. You wouldn’t believe the number of homes in your own town that are for sale by the bank, and the quality and location of many of these homes would probably shock you. If you’re searching for new home, be sure to check out the bank owned homes in your desired area. Chances are you’ll be pleasantly surprised!

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UK Recession Over?

Tuesday, January 26th, 2010



It appears as though the dark days of the 2009 recession are coming to an end as new figures demonstrate a first growth in the UK economy in almost 2 years. Many economists still remain sceptical as the rise was a tiny one at 0.1%. Employment figures also appear to have fallen too, prompting noise that things are finally starting to turn.

What does this mean for the repossessed homes market? With new figures due to be released soon, it will be interesting to see whether there has been a reduction in the massive numbers of homes which were repossessed over the last 12 months.

Many economists believe there is no reason to be excited yet, as the figures could be a result of a surge in spending over the Christmas period and the availability of extra temporary jobs during this time. The economy is still operating way below the pre-recession days and the levels of output which should be generated.

The positives can be found by examining the markets of other world countries, the USA and Japan as well as Germany and France all came out of recession last year.

The government car scrappage scheme has played a major part in repairing damage done, with soaring car sales helping to boost the economy but it’s important to remember that this is about as weak growth as possible.

It’s fair to say this level of growth is more of a stagger and the next 6 months are due to be critical, with a need for exporting from the manufacturing industry to help further maintain this upturn.

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Repossessed Homes Numbers Falling

Saturday, November 21st, 2009



The Daily Mirror report that the number of people who will lose their homes this year has been slashed by more than a third by the Council of Mortgage Lenders (CML).

The group expects 48,000 properties to be repossessed in 2009, after a combination of low interest rates, Government help and lender forbearance helped people struggling with their mortgages stay in their homes.

But although the figure is well down on the CML’s original prediction of 75,000, which was revised down to 65,000 in June, it would still be the highest number since 1995.

The revised forecast came as the group released figures showing the number of people who had their homes repossessed rose by only 3% during the third quarter of the year, despite rising unemployment.

Around 11,700 homes were taken over by lenders during the period, up from 11,400 during the previous three months, but down on the first quarter’s total of 12,700. There was also a fall in the number of people who fell behind with their mortgage repayments.

Around 194,600 people were in arrears of at least 2.5% of their outstanding mortgage at the end of September, the equivalent of 1.77% of all mortgage customers, down from 204,200 or 1.86% at the end of June.

The CML said it now expected 195,000 people to be in arrears at the end of this year, well down on its previous forecast of 360,000.

It is also predicting there will be only a modest deterioration in the number of people who are unable to keep up with their mortgage next year, with repossessions expected to rise to 53,000 in 2010, while it predicts 205,000 people will end the year in arrears.

The Ministry of Justice also released figures showing there had been a fall in the number of repossession claims issued to courts in England and Wales during the third quarter. A total of 24,938 claims were issued on a non-seasonally adjusted basis, 6% fewer than during the second quarter of the year, and 34% below the same period of 2008.

CML director general Michael Coogan said: “Low interest rates, and lenders’ forbearance policies, have helped to cushion many households facing financial problems. And although the economy is not out of the woods yet, we no longer expect a dramatic rise in properties being taken into possession unless interest rates rise from the low levels that most commentators now expect to persist for some time.”

Read the full article

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Property Repossession Rates: Top Ten States

Sunday, October 25th, 2009



As the US unemployment rate hits a 26 year high, the number of homes repossessed between July and September 2009 stood at 938,000. If this continues, it is expected that the number of foreclosure homes will increase by 200% on last year and finish at 3.5 million for the year.

As people continue to default, the US government’s attempts to offer assistance to those suffering from impending repossession is proving to be insufficient. Many more people are losing their homes than receiving help from Obama’s mortgage relief program. Although some have been assisted, allegedly 500,000 since March, missed payments are still on the rise.

Below is the top ten list of US states to have the highest repossession rates between the months of July and September 2009.

10. Illinois
9. Colorado
8. Michigan
7. Georgia
6. Utah
5. Idaho
4. Florida
3. California
2. Arizona
1. Nevada

Nevada’s high unemployment rate has proved to have had a direct result on the state’s foreclosure numbers. Overall in the US, 76,000 homes were repossessed in August and a further 88,000 have been repossessed in September. Foreclosure filings topped 343,000 on September.

It’s expected that many people won’t qualify for the government’s assistance program and experts predict a further wave of repossessed homes on the market next year.

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Avoid Repossession: Mortgage Help Website

Saturday, October 3rd, 2009



The government estimates thousands of people are suffering with their mortgage repayments at the moment. Many are unsure where to get the right advice. Websites like our own are a good way of getting free impartial information on who can help. Many companies advise a quick sale of your house. Some pushing it on you for their own financial gain. Although in some scenarios, the immediate sale of a home can be the best option, it doesn’t always mean that it is the right one.

The government has set up a new website to help those who are currently finding it hard to make their repayments. The website is called MortgageHelp and has been set up by directgov.

The site provides info for:
- People struggling to pay their mortgage.
- People who have missed mortgage payments.
- What to do if your lender is threatening repossession.
- What to do if you have been issued with a court appearance for repossession.

The site encourages you to take action if you are facing problems, raher than just trying to ignore the situation. The site intends to provide free and impartial advice on wherre to gain assistance. It encourages getting a plan of action and the steps you can take to keep your home and avoid repossession.

It is estimated that over 200,000 families are getting government assistance in order to stop their home being repossessed. If you require help, don’t be afraid to ask for help and make sure you take the right steps in your situation.

If you are facing having your home repossessed or want further information on property repossession, visit Repossessed Homes UK.

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Repossessed Homes: What Happens in Property Repossession?

Sunday, September 27th, 2009



Property repossession and the number of repossessed homes is on the increase in this time of recession. This guide is intended to help you understand the stages of repossession, why it takes place and the things that you can do if you are faced with this issue.

If you are currently paying a mortgage on your property and are falling into arrears, your lender has the right to start repossession proceedings. The terms of your mortgage contract will state this. Normally a lender has the right to start repossession after 2 months of arrears, but most lending organisatons will work with you to try and clear the arrears and thereby avoid legal action against you. The best thing is to keep talking to your lender and update them on your current situation. If you are unable to keep up repayments or your lender is not satisfied with your proposals then the lender will take legal action by going through the local county court. This is done so that they can take control of the property and gives them the right to sell the property and recover the outstanding balance on the mortgage.

In the first instance you will receive letters from your lending organisations debt collections department as well as telephone calls to try to collect missed payments. As stated above always keep the lender informed of circumstances and attempt to come to a mutual agreement to clear the debt over time. If your account remains unpaid for 4-6 months or more, the your account will be referred for legal action to a firm of solicitors. They will probably write to you demanding that you pay the arrears in full or warning you that you will face repossession of your property if the arrears are not cleared and the account is not brought up to date. Always contact the solicitors and propose a mutual contract agreement or arrangement to clear the arrears.

Proceedings to start repossession will typically begin after 6 or more months of arrears and with the solicitors representing the lending organisation issuing repossession proceedings through the local county court. A hearing date will be set by the court and its advisable that you attend. It is important that you have all your documentation concerning your mortgage account and your account history as part of your preparation for the hearing.

At the court the person presiding over the hearing (usually a judge) can decide whether to do a number of things:
1)Adjourn the hearing – You will receive a new hearing at this stage and this usually happens in the case of absence or the requirement of more information.
2)Indefinite Adjournment or Dismissal – this normally occurs if full payment of the arrears have been made.
3)Order for Possession – This order will give the lender the right to possess your property after a period of 28 days. Even at this stage there are options for you to take in order to sell your house quickly.
4)Suspended Possession Order– in this case the order is suspended following the payment of the current installment and a mutually agreed amount towards the arrears.

The final option is a favourable position for all parties as it gives you a further chance to clear the arrears and gives the lender some security that payments will be made. However, if you default on the payment or the agreement the lender has the right to seek possession of the property by way of a possession warrant or notice of eviction.

A notice of eviction or possession warrant is occurs if you fail to meet the criteria of the suspended possession order or if you are still occupying your property after the time frame for order of possession has lapsed. In this case the lender will apply to the courts to have you formally evicted. The court will send you a date and time at which you must leave the property. A bailiff of the court will attend your property accompanied by a representative of the lender as well as a locksmith. They will come with the intention of taking formal possession of the property. Even at this stage avoiding property repossession is not too late.

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