Archive for the ‘Repossessed Homes UK’ Category

Repossession Homes: What Happens After Property Repossession?

Sunday, August 30th, 2009



When your house is repossessed, its important to remember that as the owner of the property, you will be the one who is liable to pay the difference in the outstanding loan amount and the amount the house is resold for.
This cost can often run into the thousands. Between the time that the home is repossessed and sold again, there are other costs which need to be paid – solicitor fees, estate agents fees and all interest accrued will need to be paid by you.

Once the property is sold the mortgage company can chase you for the outstanding amounts for a period of 12 years if the home has been repossessed in the UK. In Scotland, the law states that you are liable for a period of 5 years.

The best way to avoid high payments is to look to try and sell your property as quickly as possible yourself. Repossession homes are often resold at a cheap price in a property auction. By selling your property yourself, it may be below market value but not as low as a potential auction price.

Read about selling or remortgaging your property before repossession.

Also read Stop your home being repossessed.

Once your property has been repossessed the mortgage company must follow some guidelines when contacting you. These rules have been set by the Council of Mortgage Lenders (CML).

Once the property is resold the mortgage company will contact you by recorded delivery within a 28 day period. They will send to you
1) Address details of the repossessed home.
2) The date at which the property was sold.
3) Details of the sale of the property including details of seller and buyer.
4) The price at which the repossession home was sold.
5) The method of sale of the property, eg. Auction

Remember that the lender will be obliged to sell the property at the highest price possible after repossession, but in truth the property will often be sold under value and then it is you will be paying the difference.

If you are suffering from financial difficulty and are unable to make mortgage repayments, then we would advise conducting the sale of your home.

Our article on selling or remortgaging your home before repossession will help you.

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UK Houses Repossessed

Tuesday, August 4th, 2009



The total number of UK houses repossessed in 2008 is estimated to be in the region of 40,000. This is already a high figure and the numbers for 2009 are expected to be even higher according to the Council of Mortgage Lenders.

The number of homes which were in arrears on their mortgage payments has also increased year on year, with an estimated 220,000 homes in arrears of over 3 months at the end of 2008.

The Council of Mortgage Lenders which produces these figures state that the number of houses repossessed in 2009 will exceed the 2008 figures with the global ecomonic crisis and credit crunch affecting more and more homeowners.

With unemployment figures rising and the number of people expected to lose their jobs over this year due to increase, it is expected that 1 home will be repossessed every 10 minutes in the UK.

Affects of Repossession
Property Repossession can affect people in different ways. For the majority it is a very stressful time and usually occurs when coupled with other bad circumstances. For example, loss of job or break up of marriage could be a factor which can lead to someone losing their home. It can also be due to illness or death.

Often people are forced to move in a hurry once evicted and this upheavel can also add to the emotional stress of the situation. This will not only affect the homeowner but also their family as well. Children are often the biggest victims as they are forced to move to a new environment, often a new school with no clear idea of why this is all happening. Parents are embarrassed to face their children as well as their families and friends and explain the situation they are facing. Repossessions can also lead to the break up of marriages and the breakdown of relationships, so its important to know where to go for help.

Many companies advertise that they can stop repossession etc and help your situation, but often these organisations are just trying to benefit further from your awful circumstances.

Although mortgage companies are often sympathetic to certain situations, failure to meet these payments will result in houses being repossessed.

If you are facing repossession, Repossessed Homes UK can help you on advising what to do by providing free information and advice. Our Links and Advice section is also a good source of accessing info on companies who can assist.

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Repossessed Homes: House Prices to Recover Slowly

Monday, August 3rd, 2009



House prices in England will fall this year and next before recovering, the National Housing Federation forecasts.

It expects prices to fall 12.2% in 2009 and 4.6% next year, before stabilising in 2011 with a 1.1% rise and continuing to climb in the following years.

It predicts that, by 2014, house prices will be 20% higher than current values.

But the group, which represents housing associations, said English homeowners who bought at the market peak could be in negative equity for five years.

Although five-year forecasts can be unreliable, the group said that not enough homes were being built.

Price predictions

The group has suggested that house prices would fall sharply this year. This was in stark contrast to the view of the Nationwide Building Society which this week said there was a “reasonable chance” that prices in the UK could end the year higher than they started 2009.

The reversal in 2011 would accelerate in 2012 with a 7.5% increase in prices, the NHF said, followed by rises of 8.4% in 2013 and 6.8% in 2014.

That would mean that English homeowners who bought at the height of the property boom would be in negative equity until 2014.

“Our research shows that, while house prices are falling in the short term, they will inevitably increase in the long term because of a fundamental under-supply of housing,” said NHF chief executive David Orr.

Only 60% of new homes required to be built each year were being constructed, the NHF said.

The group said that many young and lower-income people would remain locked out of the housing market until restrictions on lending by mortgage suppliers eased.

Visit the BBC site to read the full article.

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REDC Repossessed Homes Auction

Monday, August 3rd, 2009



It’s fast, furious and could be the future of property buying. Hundreds of houses went under the hammer in the region’s first property auction dedicated to selling repossessed homes and repossession properties.

Prospective buyers were hoping to pick up a bargain during bidding and hopefully turn their house into a home. Plush semi-detached homes which could have been expected to sell at £120,000 were sold at a fraction of their value.

The auction was being run by American organisation, REDC (Real Estate Disposition Corporation). Most properties are selling for around half the price at which they’ve been valued and advertised by estate agents for the last six months. A top table of lenders sits just below the auctioneer, giving each final bid the thumbs up or down.

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Repossessed Homes UK

Tuesday, April 21st, 2009


With the credit crunch having a huge bearing on the UK economy, many homeowners are finding the days when they had disposable income becoming few and far between. Due to changes in financial circumstances, mortgage payments often become harder to maintain and as a result many repossession properties are becoming available for purchase at low prices.repossessed-homes

In the UK, many homes are repossessed every day. Due to the fact that many homeowners are defaulting mortgage repayments, many court repossessions are taking place. The repossession properties become bank or government property as a result and then are resold in order to recoup losses. Mortgage companies and banks want to recover funds as quickly as they can and so often sell way below market price at local or national property auctions. The lender will then try and recover any further losses from the the original owner of the repossessed house. They are entitled to do this as the homeowner was unable to fulfill the initial agreement they made with the mortgage lender.

This website contains full information regarding repossessed homes including help and advice on what you can do if your home is being repossessed. Having their property repossessed can often have a huge impact on a person’s life and it is often difficult to find helpful sources of infomation or know who to turn to for help.

Our links section provides you with other sites offering further help and advice on property repossession and what can be done if you are facing this.

If you are interested in buying repossession properties, we also provide a buy repossessed homes section, this will point you in the right direction for sourcing cheap repossessed homes. Alternatively,  clicking on the links on the right will point out where to buy a repossessed house, flat, or commercial property in your local area.

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