Posts Tagged ‘repossessed homes’

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Repossessed Property Auctions – Q&A

Friday, July 1st, 2011



Below are some common questions for property auctions:

Why Should I Buy At Property Auction?

There are numerous reasons for buying at property repossession auctions. All sellers at auction are motivated to sell and want to sell quickly. This often means that they are willing to sell their property at a low price. Often the residential properties will renovation work carrying out which means there is an opportunity for the buyer to make some money and also increase the value of their property. Also once the hammer falls at a property auction there is no chance of going back on a deal so there is a certainty of purchase.

Are there fewer costs in buying through auction or buying through an agent?

In both cases the fees tend to be similar, there will be legal fees and surveyors fees to payas well as any fees to pay in order to arrange finance. When buying at auction you will need to pay an administration fee to the auctioneers which typically falls between £175 and £300 plus VAT.

What type of houses are sold at auction?

The type of properties sold at auction are repossessed properties which have been repossessed by the bank or mortgage company. As a result the properties may be unmodernised or in need of work. These properties are often different to houses sold at normal estate agents as they may not be immediately ready to move into.

What are the risks of buying at a repossessed property auction?

The risks of buying at auction are similar to those of buying through estate agents. It is important to make sure that u have done all of your preparatory work on the repossessed property such as legal searches, checking the title and surveying the property to make sure there are no defects. The important thing to remember is that once the auction is over the deal must be followed through and you are not able to go back to the seller afterwards should any problem arise. There are no guarantees on the purchase and you must buy it as it is.

How do I find a bargain at auction?

The key to finding a bargain repossessed home at auction is to have the maximum number of options available to you. You should search auction sites on the internet and contact auction houses directly. Bargains are often properties which are not so popular, so looking for a property with defects or one which needs work can be a great option. However, its important to have the know how or ability to deal with defects so that it turns out to be a bargain and not an expensive bargain! When buying at auction, many buyers often leave with ownership of their property at a price much lower than what they were prepared to pay and in case this automatically becomes a bargain.

How can I identify repossessed homes at auction?

There are several things to look out for when identifying a repossessed home at an auction. Check the auctioneers catalogue. In some cases it will say “by order of the mortgagees”, in other cases it may actually say who is selling the repossession property for example a bank, so the catalogue will say “by order of HSBC”. In other times it will say “by order of the receiver”. These are all ways of picking up a property repossession home at auction. However, not all properties will have this information in the catalogue. If you suspect the property is a repossessed home, the easiest thing to do is phone up the seller’s solicitor and ask them who is the seller.

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Houses Repossessed

Friday, July 1st, 2011



When buying houses repossessed, you still have some way to go before you can completely be satisfied with your property. Purchased repossessed properties are bought for different reasons and by different buyers. We have families who will invest in repossessed homes to get on the property ladder and have a house of their own. We have property investors who will buy repossession homes with the intention to re-sell them in order to gain some profit. There are also property developers who have the intention to buy repossession homes in order to convert them to other uses. We all have different tastes and so it may be necessary to make some changes to your property to make you feel at home or increase the property value after you have acquired it. Property investors like to give a facelift to their newly purchased repossessed home in order to attract tenants or clients and get the highest price possible. There is no other better way to do this than to give your property that great new look.

When setting on a facelift project of houses repossessed, you will first need to have a plan. Planning will involve determining where the new touches will need to be done, how they will be carried out, persons to do the work and the time it will take to complete the work. You can decide to do the facelift work yourself or hire a contractor. It helps to use advisory services of a local estate agent or local council to determine the appropriate upgrades for your property that will be in setting with local neighborhood home values.

There are different ways you can give a new look to your repossessed home. This is generally done through repairs or re-modeling. One of the cheapest ways of doing this is obviously through painting and the results are immediately visible. Other ways include creating, adding or repairing the landscapes, roofs, fences, gates, path and driveways, garden furniture, pools, fountains and ponds. This creates a very beautiful outdoor appearance. Do not forget to clear the gutters!

For the interior of houses repossessed, changes can be made by repairing the doors and knobs, floors, walls, fireplaces and windows. Ensure all rooms have working and adequate number of electrical outlets. Re-flooring and walling using beautiful and natural materials like high quality wood, stone or marble is great. Another alternative is to use synthetic materials; there is a rich variety to pick from in the market. Decorate the interior of the house to suit your taste by being adventurous with colour, textiles and texture and various house decoration pieces and items. This is especially important in the living and sleeping rooms, lounges, kitchen, washrooms, and patios.

Work on the heating, lighting, electrical, plumbing and water systems to ensure that they are in perfect working order for both the indoor and outdoor facilities. Installing solar devices, safety and security systems is great improvement to houses repossessed. It is a good idea as well to clear such houses of all clutter and rubbish.

Upgrading of repossessed houses imparts a great and beautiful look to your home, increases property value, and when put up for sale, will sell very fast and bring in good returns. In the end, giving your new repossessed home that needed new look is an investment with great rewards.

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Avoid Property Repossession

Friday, July 1st, 2011



The current global recession that the whole world is experiencing was said to be contributed by United States housing bubble and subprime mortgage crisis. The United States real estate prices rose late 2005 and mid 2006 but was said to be illiquid. The market then experienced a drastic crash during late 2006. Banks became lenient and gave loans to people with a bad credit history. As a result, people were not able to make payments and their properties were up for foreclosure. According to sources, last year alone, the number of homes up for repossession ran into the millions. Large numbers of families are facing this financial dilemma and hope seems distant. Even if home owners are willing to make payments, they are often not able to do so because they are laid off from their jobs. In this dwindling economy, how could one avoid property repossession? There are a lot of methods and tips you can implement to stop your home being repossessed but circumstances will vary. This article will discuss a few tips on how to avoid property repossession.

The very first step is to know when you’re in trouble and face the problem. A lot of people already know that they are in trouble but refuse to accept the consequences. They think that if they ignore the problem long enough, the problem will go away. But it is the exact opposite of reality. One should be in constant communication with the bank and inform the bank if they are not able to make payments. Banks nowadays are more cautious and vigilant of a borrower’s payment history. Most people will only contact the bank if they have missed two payments. It is best to contact them as soon as you’re not able to make a payment just to reassure them that you have every intention to do so and that you are not escaping your responsibilities and debt. Some banks will be willing to make special payment options or arrangement to avoid your property from being foreclosed. If this is your first time to miss payments, the bank will more likely be willing to give you payment extensions. It’s important to remember that a bank will only repossess a property as a completely last resort, often they will be extremely willing to assist as they are aware of the state of the economy and the number of people who are experiencing financial difficulties.

If in case you have failed to come to an agreement and you are not able to make payments as well, the bank will most likely send a demand letter for payment before ensuing repossession proceedings in the court. The second tip to avoid property repossession is to diligently attend repossession proceedings. Again, this is the same concept as the first tip—to be in constant communication with the lender. Your regular attendance to these proceedings will be taken in positively and the hopefully an arrangement will be agreed on between you, the court and the bank. A Suspended Order for Possession can be ordered by the court if an arrangement is agreed on. If you don’t attend these proceedings, this will be deemed negatively by the court and the bank or lender as well. The court will have no choice but to rule in favour of the bank and order your property’s repossession.

If in case you were not able to make an arrangement and the court ordered repossession of your home, a bailiff will be sent to your house for lock up. In the event that a bailiff is set to visit your property, the following tips can be followed. You can make a last ditch effort in negotiating payment to the bank or the lender. If you can pay off your monthly mortgage and make an arrangement with the arrears, the foreclosure might be postponed. Some banks or lenders will require you to settle all your arrears, in which case you can come up with contingency plans such as borrowing money from friends or family or from another lender. You can also remortgage your house with another bank or lender if your house is worth more than your outstanding balance.

One of the best options is to sell your house. You can choose to sell it through a real estate agent so that it could be sold for the best price. However, this might take time and you might need to shell out some cash to renovate your house to attract potential buyers. Alternatively, you can sell you property fast through cash buyers. However, the resale price might not be as high as the market value. But this would be the best solution if you are facing property repossession as this would allow you to pay off your debts and still maintain a relatively good credit history. Some people choose to sell their house and rent it again from the new owner so that they could be saved the trouble to finding a new home and relocating. This is a great way to save face to your neighbours and friends that you are undergoing a financial crisis.

The government also offers assistance to qualified families through financial aids. There are certain criteria that need to be met to qualify for the financial aid. For instance, it needs to be evident that you will have absolutely no means in paying off your current debt and that property repossession is inevitable. They should also display willingness in settling debts and that they did not miss payments intentionally. They should also not have more than one home to qualify for this financial aid. Once you are qualified, you can refinance your home with more flexible terms with the government.

We are indeed living in very stressful times wherein one can lose hope with their current financial situation. Avoiding property repossession is something we hope we would never face but it is important to know your options so that you will be ready if it ever happens to you. As previously emphasized, it is important to face this problem head on rather than avoid it. Avoiding it will only lead to the total foreclosure of your home. With the help of your family, friends and also your government, one can rise above these traumatic times and still keep a roof over their head.

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Tips For Buyers Of Repossessed Homes

Friday, July 1st, 2011



There are some useful tips for those who wish to get the most out of repossessions, particularly at property auctions. Some of these helpful tips are:

  • The price tag of the repossession should be within your budget limits.
  • Make sure you take time to view the property repossessions you have expressed interest in. During such a visit, it will help to have an expert who will confirm the value of the repossession and check its condition.
  • Make enquiries on what caused a property to be repossessed. This is because some of these properties may be in poor condition and some may be in poor locations. Take time to do your research on the property of interest.
  • If the repossession is a home or building that you will want to rent out, ensure that it will meet the needs of your tenants. You will also need to decide whether you will be directly involved in managing this property or you will need the services of a property agent.
  • If you are interested in property repossessions that you will use as rentals, during the initial stages you may need to have your rents set at a lower price to get tenants. You will also need to spend some money on maintenance to attract tenants.
  • Consider the costs involved in acquiring property repossessions. This will involve the renovation maintenance, insurance, auction fees, taxation and legal costs.
  • Understand the repossessed properties auction process. Learn what is involved in bidding for a property and how an auction works. Some people get their fingers burnt – don’t be one of these people.
  • Have a maximum bid price and STICK to it.
  • Dont be drawn into bidding wars.
  • Most importantly, don’t rush into hasty decisions. It is always important to do your research and

Property repossessions should be given a positive perspective as a source of unbeatable bargains for potential property investors and buyers, as well as those already in the business. It is said that when one door closes on a person, another

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Property Repossessions

Friday, July 1st, 2011



Property repossessions are a common phenomenon in today’s world. Home repossessions are the most common property repossessions in recent times due to the economic credit crunch. They commonly occur when people encounter mortgage problems as their financial circumstances take a change for the worse and as a result are no longer able to commit to their financial obligations. This comes about when someone purchases a property but falls behind on secured loan payments. Rising property repossessions, as well as rising unemployment, have caused a lot of untold misery to home and other property owners as they are driven into unbalanced equity every other day. This may occur for such property items like vehicles, homes, business premises, equipment, to name just a few.

Property repossessions can occur both at voluntary or involuntary levels. At a voluntary level, property owners can decide to have their property repossessed after revising their finances and prioritizing their financial obligations. On the other hand, they can be at an involuntary level when the person or persons involved encounter financial problems. In this situation, property will be repossessed if one fails on their loan payments, and auctioneers will only be happy to offer more repossessed properties to their clients. In the first instance, banks or lenders execute property repossessions. Auctioneers are then hired to sell the repossessed property to get back the unpaid loan. Time is usually of essence and such sales are made within a specified time frame, usually a very short one. This means that property is sold at a throw away price and not at market value.

Property repossessions can be a sad moment for the individuals involved but this can also benefit anyone looking to invest or acquire property. A repossessed home can be a good alternative for those who shy away from investing in the stock market. Such repossessions make good deals for those looking for great bargains and they are becoming very popular for property investors. For property investors, property repossessions can be looked as an opportunity for one to buy property at a throwaway price and resell to get some good profits.

Repossessed properties also give the opportunity to first time buyers to acquire property at an affordable rate, especially in an arena where prices are very high. The sale of repossessed homes are mostly executed via auctions which can be both online or offline. One can use catalogues to get more information on the sale of the these houses or use the internet search engines. Catalogues can often be obtained from local auctioneers or estate agents who organise the resale of the properties.

Most times, it may not be easy to identify repossessions at a property auction as most lenders, including banks, more often than not, will not allow this to happen. In such a case, one will be guided by auction catalogues. The auction process, however, is not so straightforward and those who are inexperienced can often find themselves paying well over the odds, so it’s important to learn the process and what is involved.

Read our tips for buying property at repossessed home auctions.

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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 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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