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.

Below is a list of property auctions selling repossessed homes in the North West of England.

Birkenhead – Smith And Sons
Smith and Sons were established in 1840 since which time they have been providing a full property service throughout the North West of England and more specifically the Merseyside area. Smith and Sons are the only Wirral firm of property consultants providing regular property auctions throughout the year.

Chester – Cavendish Ikin

Chester – Denton Clark
Our highly experienced team of auctioneers hold regular auctions throughout the year, selling a range of land and repossessed property in the North West and North Wales. With extensive local knowledge, we have built a reputation for successfully selling rural properties with potential for development, renovation or improvement.

Chester – Wright Manley
Established in 1861, we are market leaders in the sales of a wide range of properties & land by Auction or Tender.

Lancaster – Fisher Wrathall
Sales specialist offering regular property auctions in the Lancaster and Cumbria Area.

Liverpool – Sutton Kersh
We hold major collective property auction sales throughout the year, offering a range of repossessed homes and properties.

Manchester – Edisons
We have on average 14 auction sales per year, taking place in both Leeds and Manchester. A recent survey undertaken by Focus has placed Eddisons as the 8th largest auctioneer in the UK for the number of commercial lots sold and 10th largest auctioneer in the UK for the value of commercial lots sold.

Manchester – CountryWide Property Auctions
We are the UK’s largest regional property auctioneers, holding more than 55 auctions in England, Wales and Scotland each year at regional centres including London, Birmingham, Leeds, Manchester, Bristol, Llandudno and Glasgow.

Manchester – Auctions North West
Auctions North West Ltd are an Established Property Auctioneers who hold regular property auctions including repossessed property auctions throughout the year.

Manchester – Gascoigne Halman
At Gascoigne Halman we have many years experience as auctioneers. If you’re a vendor, we can provide advice and information and organise the auction itself. If you are a purchaser we can advise on the expected selling price, and we can accompany you to the auction to provide on-site assistance to pick up a repossessed property. We can even bid on your behalf in your absence.

Manchester – Pugh & Company
Our auctions are held at Manchester United Football Club and Leeds United Football Club providing excellent coverage regionally and nationally. Commercial, Retail, Residential repossessed properties available.

Preston – Armistead Barnett
The rural property specialists. Our portfolio of products covers both rural residential property and agricultural property, throughout the north-west of England.

Preston – Farrell Heyworth
‘At the company’s most recent auction held in Preston on the 12th March, 20 of the 25 lots were snapped up; a 80% sale rate compared to the circa 50% national average for the 2009 spring quarter’.

Stockport – Edward Mellor
Whatever your reasons for buying or selling through Auction at Edward Mellor you will be provided with the highest service levels and fantastic results that have catapulted us into being the 5th largest Regional Auctioneer in the UK.

Warrington – Cheshire Property Auctions
Established in 2005, Cheshire Property Auctions are a new independent firm of auctioneers, valuers and property specialists based in the heart of North West England, where our committed team act on behalf of all property owners, from private individuals, to government departments, charitable institutions and Property companies.

Warrington – North West Property Auctions
North West Properties offer a fully integral multiplicity property service with dedicated teams whether you want to buy, sell, auction, invest or let. Full portfolio of repossessed properties. Utilising over 15 years property experience our dedicated sales teams set your personal objectives as their own, making us, your perfect partners for success.

Here are some links to auctions or recommended sites for buying repossessed homes in the North West of England:

A F Brock & Co Ltd, 269 London Rd, Hazel Grove, Stockport, Cheshire, SK7 4PL. Tel: 0161 456 5050

Armistead Barnett, Market Place, Garstang, Preston, Lancashire, PR3 1ZA. Tel: 01995 603180

Auctions North West, Birch Mill Buisness Centre, Heywood Old Road, Heywood, Lancashire, OL10 2QQ. Tel:0161 6534600

Baker Wynne & Wilson, 38 Pepper Street, Nantwich, Cheshire, CW5 5AB. Tel: 01270 625214

Burns McBriar & Hall, 18 Bolton Street, Bury, Lancashire, BL9 0LQ. Tel: 0845 6444141

Carter Jonas, 52 Kirkland, Kendal, Cumbria, LA9 5AP. Tel: 01539 722592

Cavendish Ikin, 2 Cuppin Street, Chester, Cheshire, CH1 2BN. Tel: 01244 404040

Cheshire Property Auctions, Suite 33, Admin Building, Admin Road, Knowsley, L33 7TX. Tel: 0151 5471000

Denton Clark, 4 Vicar’s Lane, Chester, Cheshire, CH1 1QU. Tel: 01244 409660

Dodds, The Cross, Padeswood Road, Buckley, Clwyd, CH7 2JL. Tel: 01244 550511

Eddisons (Manchester), Bow Chambers , 8 Tib Lane, Manchester, M2 6JR. Tel: 0161 831 9444

Edward Mellor, 182 London Road, Hazel Grove, Stockport, Cheshire, SK7 4DQ. Tel: 0161 443 4740

Farrell Heyworth, Auction Department, 8 Poulton Street, Kirkham, PR4 2AB. Tel: 0845 3105700

Fisher Wrathall, The Old Warehouse, Castle Hill, Lancaster, Lancashire, LA1 1YP. Tel: 0152 468822

Gascoigne Halman, 96 School Rd, Sale, Greater Manchester, M33 7XB. Tel: 0161 9628700

Harrison Coward, County Square, Ulverston, Cumbria, LA12 7AB. Tel: 01229 582056

Main & Main, 95 High Street, Cheadle, Cheshire, SK8 1AA. Tel: 0161 4916666

Meller Braggins, 37 Princes Street, Knutsford, Cheshire, WA16 6BP. Tel: 01565 632618

Metcalfs, 18 Topping Street, Blackpool, Lancashire, FY1 3AQ. Tel: 01253 624047

Miller Metcalfe, 56 Bradshawgate, Bolton, Lancashire, BL1 1DW. Tel: 01204 525252

N J Banner & Sons, 1 Eagle Brow, Lymm, Cheshire, WA13 0AG. Tel: 01925 753636

North West Property Auctions, 98 Carrington Close, Birchwood , Warrington, Cheshire, WA3 7QB. Tel :01925 490 711

Pennine Ways, Market House, Market Place, Alston, Cumbria, CA9 3HS. Tel: 01434 381808

Pugh & Co. , 5 Lockside Office Park, Lockside Road, Preston, Lancashire, PR2 2YS. Tel: 01772 722444

Richard Turner & Son, Royal Oak Chambers, Main Street, Bentham, Nr. Lancaster, LA2 7HF. Tel: 015242 61444

Smith & Sons, 51-52 Hamilton Square, Birkenhead, Merseyside, CH41 5BN. Tel: 0151 6479272

Sutton Kersh, 2 Cotton Street, Liverpool, Merseyside, L3 7DY. Tel: 0870 8731212

The Venmores Partnership, 44 Stanley Street, Liverpool, Merseyside, L1 6AL. Tel: 0151 236 6746

Wright Manley, 63 High Street, Tarporley, Cheshire, CW6 0DR. Tel: 01829 731300

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.

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.

I found a great article from Wiki How on Avoiding Property Repossession:

Repossessions are starting to become common. Last year 17,000 homes were repossessed, the highest number for five years, with further rises predicted for the coming year by the Council of Mortgage Lenders.

A rise in property repossessions means that bailiffs will be kept busy – so what can you do to stop the bailiffs coming to your house uninvited? This will depend on how bad your situation is, but even if you have been handed a court order, and proceedings for repossession of your home have been started, there are still ways that you can deal with the situation.
If you are, or someone you know is facing repossessions, this article will help to enlighten you with the options that you have.

Steps

1. Falling behind on payments
(A) Lenders will normally only start to take action if you miss payments for two months – if you are having difficulties, the best thing to do is let your lender know and see if you can come to an arrangement with them.
(B) If you fail to come to an arrangement with your mortgage lender, they are most likely to send you a letter from their solicitor demanding payment, before issuing repossession proceedings with the county court.

2. Repossession proceedings
(A) By attending the proceedings, you may be able to come to some arrangement with the court and your lender. However, if you do not attend, the court will have no alternative but to order repossession.
(B) If you can make an offer to keep paying your monthly installments, plus something towards the arrears, the judge may be satisfied with this, and grant a Suspended Order For Possession.

3. Bailiffs
(A)If you have made no acceptable offer for repayment, or defaulted on a Suspended Possession Order, then your lender has the right to seek repossession of your property. In this situation, a court order will be granted, and a date will be set for a court bailiff to visit your property to formally take possession. You will normally be given just 10 minutes to pack your things and get out.

At any point in the process, before the bailiffs arrive, you still have a number of options to solve the problem. These are:

*Negotiate repayment – If you can afford to pay make your normal monthly mortgage installments and pay something towards the arrears, the lender may be able to agree to this.

*Pay off all of the arrears – Your options here are to borrow money from friends or family, or from another lender. It is important to be careful here though, if you can’t afford the payments on a new loan, you may have more lenders chasing you for money.

*Remortgage – Some mortgage companies may be willing to remortgage if your house is worth more then your outstanding debts.

*Sell your property – You could do this through an estate agent, which would probably get you the best price for your house, though there are downsides – it could take many months to find a buyer and complete a sale, and you may even need to spend money on your house to attract buyers, also bear in mind many buyers pull out due to broken chains.

*Sell your property fast – A fast cash buyer will normally offer you between 80% and 85% of the market value of your property, but they will give you a fast sale, completing the exchange of contracts in a very short time frame.
If you are facing a repossession order, this could be the answer. In addition you can sell and rent back your property, avoiding the hassle and stress of finding somewhere else to live.

Tips

* You can possibly sell and rent back – this is a great way of no one ever finding out that you sold your house.

Read the full article here.

Manchester City Council are to investigate the idea of paying homeowners’ “cashback” in an attempt to help them through the credit crunch and ultimately avoid repossession. Each household could be given £50 each to help through the recession. Many people in the UK are currently stuggling with mortgage repayments and with tnis extra money coupled with other government initiatives to help people with repossessed homes, this could ultimately help in stopping their home from being repossessed at a time when every penny counts.

This decision has come as local authorities throughout the UK are drawing up measures to stop unemployment soaring and stop businesses from going under.

This “cashback” initiative would mean that every household in the city would receive a cheque or get a one month reduction in council tax bills. The scheme was initially proposed by the Lib Dems and subsequently, the Labour government agreed to investigate the idea further. A report into the feasibility and cost-effectiveness will be drawn up next week.

A similar scheme was tested in London, but proved to be too expensive, and with 200,000 households in Manchester, the total amount of cashback paid could be £10 million. Would it not be better to spend this amount on a project which would benefit the whole community.

With so many property repossessions occurring in UK, the Government is providing extra funding for free legal advice at courts. The fund which currently stands at £750,000 has been doubled to £1.5 million.

This means that all courts in England now provide free legal advice for people who attend repossession hearings in court. Legal services previously funded the repossessed homes desks at court, but this injection of government money has helped double the number of desks in English crown courts.

The government claim that in that four out of five cases these desks help stop immediate repossession or avoid evictions, and that even at this late stage in the repossession process there is hope that a person can avoid losing their home.

This extra funding comes amid recent figures showing huge increases in the numbers of people whose properties were repossessed in the first quarter of 2009. The Council Of Mortgage Lenders (CML) have also released figures which illustrate a 50% increase in repossession levels in the same period.

The announcement comes as the Financial Services Authority is expected to publish figures showing an increase in the number of people who had their homes repossessed during the first quarter of the year. The CML have stated that a record 75,000 homes have been repossessed already this year.

The UK government have introduced a new range of schemes in order to aid people and help avoid home repossession. This includes the Homeowner Mortgage Support Scheme which allows people to defer 70% of their interest payments for up to 2 years. Another scheme, the Pre-Action Protocol restricts courts from only issuing repossession orders when there is no other alternative.  However, figures show that only 2 homeowners have actually benefitted from this initiative.

Currently, repossession properties make up 20% of all homes sold at auction. This figure is constantly rising due to the financial crisis in the UK. Banks and lenders are now moving even more quickly when it comes to repossessed houses and are looking to sell them on their first day listed at auction. What does this mean for potential buyers? low prices. The banks and lenders will be willing to sell low in order to force a quick sale and recoup funds.

Property auctions are the best place to buy repossessed homes, but it’s important to know what you are doing and not end up paying over the odds. Below we have added some quick tips to Repossessed Homes UK so that you can hopefully pick up a bargain repossessed property.

1. Do Research
- Make sure you know the area you are buying in.
- If buying to let then know the rental market.
- If the area has Universities or hospitals nearby then finding tenants will be easier.
- Check the market rate in the area especially on the same street.

2. Auction Trial Run
- Visit Property Auctions as a test and familiarise yourself with the process.
- Watch how others bid.
- Obtain Auction Catalogues from auctioneers.
- If interested in a particular property see if there are other documents available from the auctioneers.

3. Visit The Property
- Make a visit to the property, don’t just rely on catalogue descriptions.
- Take a builder with you if possible to get an idea of how much renovations may cost.

4. Pay for a Survey
- Surveys are essential and can ultimately save you thousands if it means you avoid buying a dud property.

5. Have a Price Limit and Stick to It
- When attending auction, have a maximum bid price in your head for a particular property and STICK TO IT. It’s easy to get carried away in auctions with other bidders present but it can ultimately prove costly.

6. Arrange a Mortgage Before The Auction
- Don’t bid on a repossession property unless you are sure you can get a mortgage.
- Exchanges are done on the day of property auctions.
- You will need to complete within 20 days.
- Never apply for a mortgage after you buy at auction, if your application is rejected you risk losing your deposit.

7. Make Sure Your Deposit is ready
- Make sure you have the 10% ready to put down as deposit on your repossessed property.
- Take chequebook and identification to the auction.

8. Factor in all Costs
Remember that there will be many costs involved and don’t forget to budget accordingly.
- Survey Fees
- Deposit
- Auction Fees
- Stamp Duty
- Solicitor’s Fees
- Renovation Costs for the repossessed house
- Insurance Costs
- Future Mortgage Payments
- Other Costs

9. Calculate Taxes You May Need to Pay in the Future

10. Cover your Mortgage Payments
- If buying to rent the property out, it is not certain that you will get a tenant on the first day, or if there is renovation you will have to wait for a tenant. During this time the mortgage will still need to be paid so factor this in also. We advise to have at least 3 months payments in reserve.

With the number of people facing financial difficulty on the rise, coupled with the state of the UK economy, the number of repossessed homes sold at property auctions has increased sharply. Properties are being snapped up way below the market price, with some auctioneers claiming to offer repossession properties up to 40% below the normal selling price.

Leading UK property auctioneers, Allsop claim there is a notable increase in the number of properties being auctioned. Allsop state that the number of properties offered at auction has increased in 2008 whilst the overall price has reduced dramatically, a sign that sellers are looking for quick sales.

Allsop state that around 80% of auctioned properties in 2008 were repossession properties. This large figure has since fallen. This fall is mainly due to government action taken on mortgage lenders to reduce the level of repossession and look for ways to avoid repossession. However, Allsop expect the figures to increase again and more homes to be repossessed over 2009.

Allsop also predict that the number of repossessed homes will not fall for some time and the main source for these repossession houses will be the property auctions. They predict this year will be quiet for the retail property sector but cash buyers will always be looking to pick up bargain repossessed homes.

Allsop suggest that poeple often go to auctions to buy cheap properties and they often leave after finding exactly the repossessed home they were looking for at a bargain price.

The Telegraph newspaper releases new figures stating that there are almost 1,000 homes being repossessed on a weekly basis in the UK.  The Council of Mortgage Lenders claim that their predictions of 75,000 homes being repossessed his year may be less than in reality. They claim that the government will be introducing new measures in order to help prevent repossession for homeowners.

Economists on the other hand are less optimistic. They claim that with unemployment figures rising on a daily basis, the number of people struggling to make mortgage repayments will also be increasing and record numbers will be losing their homes.