Posts Tagged ‘Repossessed Homes UK’

Purchasing Repossessed Homes

Sunday, February 5th, 2012



According to the Council of Mortgage Lenders, the forecasted number of home repossessions for 2011 and 2012 is estimated at 40,000 to 45,000. Thousands of homeowners are under financial stress and people have no other choice but to give up their property for foreclosure. However, this opens the doors for first-time homeowners and investors in purchasing repossessed houses at affordable prices.

For first-time homeowners, diving head first into purchasing a repossessed home can be very overwhelming. However, there are a few things that can be done to ensure that a prospective homeowner gets their money’s worth. Here are a few tips to remember when purchasing repossessed houses.

Get your finances in order
It is important to know how much you can afford, to avoid going over your budget. Some people purchase a repossessed property just because it is sold at a very low price without even considering if they can afford it. Such a mistake can also send a first-time homeowner into a financial crisis which might also lead to home repossession.

Find a suitable home to purchase
There are thousands of repossessed homes in the market but finding one that is suitable to your physical requirement and financial capability can be tricky. It can be very overwhelming to sort out numerous property listings in search of a home to purchase. Fortunately, buyers can contact a real estate agent to help in the selection process. Real estate agents can give excellent advice regarding repossessed properties and can help protect your assets during the transaction. It is also recommended to compare the price of the property to other similar properties in the area to determine if it is a fair price.purchasing repossessed homes

Take time to inspect the property
It should be remembered that the house is sold as is, and since the house was repossessed, most likely, the previous owner did not have the resources for maintaining the house. Factor in the potential repair costs to the total cost of the home to assess if it is still a good buy. Having a surveyor visit the property and assess its structural condition is also recommended.

The buying process
Once a prospective buyer is decided in purchasing a home, he needs to send a notice to offer to the seller or place a bid, if the house is being auctioned off. A real estate attorney or property lawyer can help ensure a smooth transaction, and can also help protect your assets during the process. If the house will be auctioned off, it is also important to take the necessary steps to prepare for the auction. An auction can be very overwhelming for first-time homeowners, thus, it is important to prepare not only financially, but mentally as well.

Purchasing repossessed homes is more than just sifting through a catalog and stumbling across a great bargain. Purchasing a home is probably the biggest purchase anyone will make throughout his lifetime, thus a great deal of time and effort should be invested to ensure that the property is worth every penny.

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Bradford & Bingley Admits 50% Rise in Home Repossessions

Wednesday, August 26th, 2009



The Guardian newspaper reports that mortgage lender, Bradford & Bingley has admitted that home repossessions have increased by 50% since the first half of the year. This is the clearest indication yet of the problem facing the UK housing market as the number of homes being repossessed continues to increase. Read the full Guardian article.

State-owned Bradford & Bingley today bucked an improving national trend in home repossessions by admitting it had seized more properties from its defaulting mortgage customers in the first half of this year.

The near 50% rise in the number of repossessed homes on B&B’s books came as new figures showed government pressure on lenders to go easy on struggling homeowners had contributed to a drop in foreclosures.

The Council for Mortgage Lenders said 11,400 properties were repossessed in the three months to June, a drop of 10% on the previous quarter but up from 10,000 in the second quarter of 2008. Falling interest rates eased the pressure on home-loan payments, with the CML reporting only a small increase in customers missing one or two monthly repayments.

At B&B Richard Banks, managing director, warned that repossessions would continue to rise until the end of this year, reflecting the sharp rise in the number of customers who began falling into difficulty in 2008. Banks joined B&B in May on a salary of £250,000 a year.

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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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How To Avoid Property Repossession

Sunday, July 19th, 2009



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.

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