| Buying a Repossessed Property | | | | descriptions. You could also try asking an estate agent |
| If you are looking for a cheap house you might be | | | | about repossessed or distress sales. |
| tempted by the possibility of buying a repossessed | | | | The next place to look is property auctions. Bear in |
| house or foreclosure. Repossessions are of course | | | | mind, however, that property auctions attract property |
| increasing at the moment so this could be the ideal | | | | investors who know what they are doing and |
| time get yourself a bargain. | | | | generally have access to a fair amount of cash. So |
| Buying a bargain does of course mean that somebody | | | | make sure you do your homework first. |
| else is losing a packet. If you are of a religious bent | | | | If you are think buying at auction is for you, then you |
| you might argue that this is all God's will. If you are not | | | | need to check the catalogue which is produced |
| religious then you might just see it all as Darwinian | | | | weeks before the auction date and view the property |
| economics, the survival of the smartest (or the | | | | you are interested in before bidding on it. |
| luckiest) which ensures that in future generations | | | | If you are buying from an estate agent then the |
| people will be smarter (or luckier). | | | | process is not straightforward. First, after an offer has |
| Nevertheless, be all this as it may, there are possible | | | | accepted on a repossessed house, the estate agent is |
| pitfalls so take care, even if you are in the fortunate | | | | legally bound to publish a 'Notice of offer' in the press. |
| position of having some spare cash to buy a bargain | | | | Other prospective buyers are thus invited to make a |
| home. | | | | bid over a a period of seven days. This is a |
| Repossessed or foreclosed properties can be a | | | | double-edged sword as, clearly if you see such a |
| godsend for people looking for a house who can't | | | | notice of offer on a house then you can make a bid |
| afford one. | | | | yourself. |
| The number of repossessed properties is still on the | | | | This process means that you are potentially in an |
| rise according to the UK's Council of Mortgage | | | | auction, and even after the seven days the bank can |
| Lenders. There were 12,800 repossessions in the first | | | | accept a better offer if one comes along. It is |
| quarter of 2009, compared to 10,400 in the last quarter | | | | important to realize that until contracts are exchanged, |
| of 2008, and 8,500 in the first quarter of 2008. | | | | you do not have a legal right to actually buy the |
| So where do you have to go to get your hands on | | | | property. The bank of course is only interested in |
| one ? And how do you do it ? | | | | getting the best price for its property. |
| The first thing to realize that your desirable | | | | You will have 28 days to complete, but you could find |
| repossessed residence is owned by a bank not by a | | | | yourself paying for a survey etc... only to be outbid on |
| flesh and blood person. The person was booted out | | | | day 27. |
| by the bank, so that they could sell the house at a loss, | | | | Auction |
| rather than let the person live in it. But that's bankers | | | | Buying at auction is different from buying through an |
| for you - totally useless in my opinion. | | | | estate agent. Once the auction ends you are deemed |
| But I digress. The bank wants to sell the property and | | | | to have exchanged contracts, neither party can |
| get it off its hands as it does not want to be bothered | | | | change its mind. The transaction must be completed |
| with maintenance or renting houses etc.. | | | | within 28 days. |
| Before you start you will need to get an 'agreement in | | | | This is more straightforward but you have to pay a |
| principle' from a mortgage lender, so that you know | | | | 10% deposit on the day of the auction, which you risk |
| how much they are willing to lend you. | | | | losing if you do not complete the contract. So in some |
| You should obtain a certificate that says how much | | | | ways you are better getting any survey and legal |
| you can borrow, which should convince the seller that | | | | work done before the auction - despite the fact that |
| you have the necessary ready cash to buy the | | | | you don't know if you will win the auction or not. |
| property. This won't cost you more than a credit | | | | The Property |
| check. | | | | Repossessed properties are generally in need of a fair |
| Now you have to find the repossessed property of | | | | amount of work so you need to factor this into your |
| your dreams. They are advertised by smaller estate | | | | costs. |
| agents and websites such as Globrix and Rightmove, | | | | It is important to chase people up too, as the |
| but they probably won't have REPOSSESSED | | | | transaction needs to be completed in 28 days. You |
| plastered all over them. The ads. generally look | | | | are recommended to chase both solicitors and lenders |
| cheaper however, with no photos and economical | | | | twice a week at least. |