| stically, the figures for home repossession have risen | | | | Offers can be made on a repossessed house, but the |
| by 45%, according to Government figures. There can | | | | lender may decide they want to publish a |
| be many reasons that lead to house repossession, | | | | ‘notice of offer’ in the local press. This |
| such as: divorce, credit card debt, illness, secured or | | | | states that the lender will accept higher offers that are |
| unsecured debts or separation. | | | | received by a certain date. |
| The process of repossession can legally begin when 2 | | | | Auctions used to be mainly used by investors looking |
| payments to a lender have been missed. The first | | | | to by the property and sell it on at a profit, but now |
| missed payment brings the borrower into arrears with | | | | those wanting to get onto the ‘property |
| the lender, who then have to be contacted and a | | | | ladder’ – but may not have the |
| payment schedule agreed. If the borrower does not | | | | necessary funds for a standard purchase – can |
| contact them, or cannot afford to make the payments | | | | do so, as the properties are usually sold for less than |
| and a second payment is missed, then the lender can | | | | their market value. |
| begin the process of home repossession. | | | | Other benefits include the bidding process, which is in |
| The first stage of this is for the lender to state in a | | | | an open forum so all bidders know the price and do |
| letter that the borrower has seven days in which to | | | | not have to bid ‘over the odds’ to |
| meet the payments or to agree a payment scheme. If | | | | secure the sale. Also, the process is much quicker than |
| this is not possible, then solicitors will begin court | | | | the conventional sale process, usually taking 1 month |
| proceedings, seeking a home repossession order. | | | | from sale to occupation. |
| Usually the court will try and see house repossession | | | | There are other factors involved, however. A |
| as the last eventuality. However, if the borrower is | | | | repossessed home may be in need of repair and |
| deemed to be unable to make the necessary | | | | renovation or carry a negative credit rating associated |
| repayments, including arrears and penalties, then he will | | | | with the address – although this can be |
| be served with an eviction notice and a date will be | | | | absolved by contacting the relevant credit reference |
| scheduled to leave the house. | | | | agencies. |
| The repossessed home is now the legal property of | | | | There are lists of auctioneers available in local |
| the mortgage lender. The lender can then instruct an | | | | directories, but it is also worth contacting estate agents |
| estate agent to put the house on the property market | | | | and mortgage lenders who have a vested interest in |
| or for it to be sold at auction. | | | | the sale of any repossessed property, although |
| First-time house-buyers can research these properties | | | | mortgage lenders can be secretive about their |
| and they can become an affordable alternative in an | | | | involvement in house repossession, in terms of |
| increasingly expensive market. | | | | image-consciousness. |