Posts Tagged ‘repossessed homes’

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Buying A Foreclosure Property

Sunday, January 29th, 2012



The recent surge of foreclosed properties has disrupted lives of thousands of families, dragged down market values of properties and sent financial institutions into a scramble to keep their heads above water. However, this also provides an opportunity for first time homeowners to purchase foreclosed properties at a very low cost. However, there are certain things that one must do to ensure they are making the most of this opportunity.

Any prospective buyer should first arrange his finances and budget carefully. It would be best to get preapproved for a mortgage so that the buyer knows exactly how much he is capable of spending. Other expenses should also be taken into consideration such as repair costs, surveyor’s fees and other miscellaneous processing fees.

Next, find a local real estate agent that specialises in foreclosures. Having an experienced real estate agent providing property listings and real estate advice will indeed be an advantage. They are more versed about the different processes and can help a buyer assess if the property is a good buy. Furthermore, real estate agents have a vast network of contacts and they might know of available foreclosed properties even before the lender has advertised. A real estate agent can help a buyer study and compare prices of similar homes in the same area.buying foreclosure home

After finding a suitable home to purchase, make sure to visit the house personally. It should be remembered that the sale for the home is as is, so check to see if any repairs are needed. It would be best to bring a professional surveyor to check the overall condition of the building. Other people have this done once the sale has been closed, but it is recommended to do it before the sale. Though a surveyor’s fee can be a little steep, having the advance knowledge of the possible repairs can help one evaluate if the house is still a good purchase. If there are structural issues with the property this spending could save thousands in the long run. It is also recommended to check the neighbourhood. Any prsopective buyers should evaluate safeness and proximity to schools, the nearest hospital and work.

Once all the necessary steps are taken and the buyer has decided to purchase the house, a notice of offer must be submitted to the bank. A trusty real estate agent can help ensure a smooth transaction and can also help protect your interests throughout the transaction. Others opt to avail the services of a real estate attorney in closing the sale. Alternatively, if the home will be sold in an auction, necessary steps should also be done to prepare for the bidding.

Buying a foreclosure property can be a very good investment. However, for it to be truly profitable and cost-effective, you should carry out ample preparation and research to ensure that you are truly getting your money’s worth.

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Home Repossession Process

Thursday, December 29th, 2011



The current economic climate has caused thousands of homeowners to lose their homes because of repossession or foreclosure. If a homeowner is facing the same situation, knowing the home repossession process will help them to prepare for it and ultimately try and avoid it.

If a homeowner starts to miss mortgage payments, the lender will usually contact the homeowner to enquire regarding missed payments. Some property owners mistakenly avoid these calls, thinking that the problem will soon go away. However, being unresponsive proves to be a big mistake as the lender takes it as a sign of unconcern and disregard and will use it against the borrower. It is best to keep in constant communication with the lender as to when the payment will be made.

Once the arrears have reached three months, the lenders will forward the incident to the collections department. The collectors or solicitors will get in touch with the homeowner via post and demand settlement for missed payments. At this point, the homeowner can appeal for payment extension to prevent legal proceedings. However, the homeowner must make sure to make the payments on the agreed dates or else legal proceedings will follow. Alternatively, the homeowner can propose a special payment arrangement to catch up on missed payments, such as spreading the arrears over a longer amount of time. Often lenders will be willing to agree to a new arrangement as it means that the home repossession process can be avoided.home repossessiom process

If a payment arrangement has not been reached and arrears remain unsettled, the lender may begin legal proceedings to repossess the property. The homeowner will be notified of the court proceedings via post, in which the borrower may be required to send a reply. The reply may include the homeowner’s plan and intention regarding the outstanding arrears and any supporting documents that proves their current financial situation. At this point, the borrower may still try to arrange a special payment plan with the lender.

If the court rules in favour of the lender, the court will grant a possession order instigating the homeowner to vacate the premises by a specific date. The property owner can still avoid home repossession at this stage by selling the property in a regular sale or a short sale. Alternatively, the homeowner can settle the outstanding arrears, thus a suspension order can be sent by the court. The borrower can continue living in the property as long as regular payments are made. However, if at any time the payments are missed, the lender can repossess the property without any further court proceedings.

The owner of the property will be sent an eviction notice in which the premises should be vacated. A bailiff will come to the property for lock up, thus the borrower should gather their belongings before the lock up. If the homeowners fail to vacate the property on the specified date, they may be removed by force. Even during this point, the homeowner can still try making payment arrangements with the lender to avoid repossession.

Clearly, the homeowner still has options available at each home repossession stage. Thus, the borrower can and must exhaust all efforts in order to avoid property repossession.

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Stop Home Repossession

Friday, December 2nd, 2011



Thousands of homeowners face home repossession year after year. According to the Council of Mortgage Lenders, the number of repossessed homes in the UK in the second quarter of 2011 fell by 7% compared to the same time last year. However, the number of mortgages in areas have increased, thus the forecasted number of home repossessions for the next two years is expected to fall between 40,000 and 45,000.

Avoid Home Repossession
Because of the current economic turmoil that the whole world is facing, more and more people are losing their jobs and are facing financial instability. Thus, affected homeowners face home repossession due to their failure to settle mortgage payments and arrears. If you are facing home repossession, there are steps that could be taken in order to avoid, or at the very least, delay it.

The most obvious way to avoid home repossession is to make payments on time. If in case there will be missed payments, it would be best to let the lender know about your current financial situation and the possible date as to when the debts will be settled. Some lenders may agree for a payment extension, however, the homeowner should make sure to settle the arrears on the agreed date. Some lenders may offer a repayment plan, such as spreading out missed payments over a longer time. Some lenders allow refinancing, wherein the loan balanced may be increased to pay off current arrears. Alternatively, the homeowner may apply for government loans to cover for the missed payments.

Stop Home Repossession
If the homeowner is not able to settle the arrears after 3 months and no agreement has been arranged, the lender will send a demand letter requesting full payment of the arrears. If the homeowner is still not able to respond to this demand, legal proceedings will follow. During this time, there are still a few things that can be done to stop home repossession.

First, consider selling your home. It is best to contact a trusty real estate agent for advice of the current market value of the home as well as the average number of days the property will be on market to sell the home. Real estate agents will also have great connections to possible buyers. Additionally, selling your home may require a few home improvements so that it could be sold for a higher value.

Next, consider a short or quick sale. A short sale involves selling the home for less than the total balance owned on its mortgage. However, the lender must agree to the short sale and the homeowner may not be fully relieved of his obligations to the lender. The homeowner’s credit rating will still be affected with a short sale. Lastly, the homeowner can still appeal to the lender and the court (if court proceedings have begun) for a special arrangement. If the homeowner can demonstrate that they can repay their current mortgage and can make an arrangement regarding the arrears, the lender may agree to this and stop the foreclosure or repossession proceedings. Alternatively, if the homeowner has suddenly changed in financial status and is able to repay current mortgages and arrears, the foreclosure proceedings can also be stopped.

Stopping home repossession requires patience and resourcefulness. One should not lose hope and exhaust all possible efforts in order to stop home repossession.

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Repossessed Homes In The UK

Wednesday, November 2nd, 2011



The number of repossessed homes in the UK has been on the rise since the global economic crisis of 2008. Following that year, the number of repossessed homes was at an all-time high of 46,000. However, it was still lower than the forecasted 49,000 home repossessions by the Council of Mortgage Lenders. The economic recession has brought financial problems for homeowners resulting in late payments on their mortgages. A study made by Flash Eurobarometer in 2010 showed that 37 percent of adults in UK felt that they have a low to moderate risk of falling behind on their mortgage payments, and 6 percent felt that they have a high risk of losing their homes.

If homeowners are unable to settle their arrears, lenders are forced to take legal actions to repossess the property. A number of steps and procedures are followed before the lender can officially repossess the property, and often, the homeowner is given ample chance and notice to settle his debt to avoid property repossession. If in the event that the homeowner and lender are unable to reach an alternative arrangement, the court will order a repossession order. Property repossessions affect thousands of families leaving them homeless. The stress of home repossession can truly be traumatic and even young children can see their lives turned upside down.

Fortunately, the government is determined in helping these troubled homeowners keep their properties. In 2009, two schemes were introduced by the government to aid homeowners who are falling behind on their repayments. First, the Mortgage Rescue Scheme (MRS) provided assistance for eligible homeowners to keep their home with the approval of the local council. Certain criteria needs to be met to be eligible for the program, for instance, annual earning must not exceed £60,000 and the value of your mortgage is less than 120 percent of the home’s actual value.

Second is the Homeowners Mortgage Support (HMS). This is a type of extended forbearance which reduces your monthly payments, holding it off for up to two years. The reduced amount is not written off; instead it is delayed, providing breathing space until your financial situation has improved. Certain criteria needs to be met to be eligible for the program, for instance, if your work hours have been reduced or you have been laid off from work. As a result from these government-initiated programs, a total of 20,254 households have benefitted as of March 2010.

It is important to remember that lenders have a legal responsibility to treat homeowners fairly and exhaust all other options before repossession of a property. As with any other problem, it is best to meet these financial problems head on. Homeowners needs to exhibit responsibility and fortitude during these tough times and not give up hope to save their property from repossession.

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Bank Repossessed Homes

Wednesday, October 5th, 2011



If you’re a first-time homeowner or a potential investor, buying bank repossessed homes can be a great investment. Thousands of homeowners are facing problems when paying back their mortgages in light of the recent economic crisis. The implication of this is indeed devastating to our economy. However, this offers a bigger opportunity for potential buyers to purchase homes at a cheaper cost.

Repossessed homes are foreclosed by lenders such as banks, creditors or government agencies if the homeowner is not able to make payments on their mortgage. The lenders are then forced to sell the repossessed properties quickly to make up for their losses, and often they are sold well under market value. These homes are often sold in auctions, while banks may advertise the properties themselves or through real estate agents.

There are a lot of advantages to buying bank repossessed homes. The obvious advantage is purchasing homes at an affordable price compared to other real estate properties. Lenders want to get their money back quickly and they are often willing to let it go for a low price. Additionally, repossessed bank homes are already vacated saving you the hassle of asking the previous owners to leave the property. Unlike foreclosed homes sold at auctions, the bank sends in a sheriff to lock up the home and have it ready for occupancy for the new homeowners. And lastly, the bank or the lender allows potential buyers to survey the house before the purchase. This allows the buyer to inspect the property for any potential repairs or hire a professional contractor to evaluate the structure’s integrity.

Buying bank repossessed properties can be a great endeavour but might come with potential risks. It is important to bear in mind the following tips before making a purchase. As previously mentioned, it is important to have a surveyor take a look at the property to determine its condition. Previous owners of foreclosed properties are usually in financial trouble and may not have been able to maintain the property. Therefore, it should be expected that the properties might have a few defects. Additionally, it is important to do your research.

Check out the property’s location and surrounding establishments. It is also important to study the prices of other comparable homes in the area to determine if the repossessed home is being sold at a reasonable price. And lastly, if all of this work seems overwhelming, you can always seek the help of your trusty real estate agent. A real estate agent will have great connections to different properties and could also assist you in all the paperwork.

Buying bank repossessed homes can indeed help you save a substantial amount of money. Though it may involve some financial risks, it can still be a great investment as long as you do your part.

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Repossessed Mobile Homes

Sunday, September 11th, 2011



Mobile homes provide a cheaper alternative than built-in homes. Its mobility also offers a great advantage to people who love to travel around. There are different kinds of mobile homes, namely touring caravans, static caravans and mobile homes; each differs in size and mobility. Mobile home parks can be set up in empty lots and even cliffs. And a great way to purchase an affordable one is to purchase repossessed mobile homes.

Thousands and thousands of mobile homes are repossessed in both the UK and USA and most of them are sold at heavily discounted prices. As it holds true with other repossessed properties, owners of mobile homes who are not able to settle their mortgages are forced to have their mobile homes repossessed. The lenders are forced to sell the repossessed mobile homes quickly to make up for their losses, and often sell the property through auctions. Some auction organisers advertise through the internet, while some give out brochures containing the properties that would be auctioned. It is important to do your research first to make sure you get a good deal. Compare the prices of other pre-owned mobile homes in the market to determine if they are being sold at a reasonable price. Aside from auctions, some banks sell these repossessed mobile homes directly and advertise them on their websites. Additionally, contacting a trusty real-estate agent can help you gain access to these listings.

Once you’ve found the repossessed mobile home that you would like to purchase, there are a few things that you need to check before making the purchase. It is important to have an expert technician check the trailer’s wiring to make sure it is still up to standard. Faulty wiring can become a serious fire hazard. It is also important to have the plumbing checked. The transport of mobile homes can cause repossessed mobile homespipes to loosen or even develop cracks. It is also important to check for signs of rusts under the sink and other concealed pipes. The floors should likewise be checked for signs of deterioration that might be covered by carpeting. Signs of water leaks on the roof should also be checked.

Additionally, moving mobile homes often causes minor damages, hence it’s recommended to purchase a used mobile home that sits on a plot of land. And if you’re moving the mobile home, it is also important to hire a reputable moving company with plenty of experience.

A repossessed mobile home, if in good state, can indeed be a great choice for a first home. If you’re not so good with tools, a visit from a mobile home repairman can ensure that quality and integrity of the structure. It is important to do your homework before making the purchase to make sure that you are getting your money’s worth.

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Repossessed Homes: UK Property Market in Crisis

Tuesday, August 30th, 2011



Problems for the UK housing market are rising according to a recent report by BBC News. As the recession deepens in the UK, the likelihood of more homes being repossessed is bound to increase following reports that the UK housing market is on the brink of a “crisis”.

A body representing housing associations in England has stated that there is a “chronic under-supply of homes” and without government action UK property could be faced with a massive crisis. Since the global recession has hit Europe hard, more and more people are out of work, losing jobs and finding it difficult to make mortgage repayments. This coupled with the fact that prices of commodities, fuel and taxes are increasing while wages remain the same mean that many homeowners are now struggling and facing property repossession.

repossessed homes

There are also repercussions expected for those who don’t own a property as home ownership rates are expected to fall even further and rents increase massively. As banks become more strict on criteria for mortgages and demanding higher deposits, first time buyers are finding that they are being simply priced out. House prices are on the increase and waiting lists for housing are also on the up, leaving worrying times for prospective buyers.


Despite government claims that there is more land now available for the building of new houses, major developers are holding planning permission for 188,000 new homes but construction is just not happening. In 2010, the number of new homes which were built was the lowest since 1923.

The effects leave thousands of people in desperate situations as they are unable to find housing which is in their budget and an increasing number being forced to pay over the odds for unregulated rental properties.

Predictors expect the value of property to rise by 21% over the next 5 years and rents to increase by 20% over the same period. The effects of these increases could hit the public hard and there simply won’t be ant first time buyers. On top of this many of the newly built city centre one and 2 bed apartments which were fashionable in many major cities have been completed but are sitting empty or have been unsold as people don’t have the money to either buy or rent them.

The government are making efforts to try and prevent declines in the market by providing schemes for first time buyers run in conjunction with mortgage lenders. The scheme aims to provide assistance in deposit payments, enabling first time buyers get on the housing ladder. However, the thought is that the big developers may end up buying the new homes and then renting them out at high prices.

The end result for this entire “crisis” is not a good one for homeowners facing property repossession. It is expected that the number of repossessed homes will only increase over the next few years as the economic depression worsens.

Read the full BBC Article Here.

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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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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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