| The housing market is in crisis, estate agencies are | | | | in estate agency fees. But it'll still cost you money and |
| closing hand over fist and unemployment's rising. To | | | | you need to be prepared. |
| top things off, hikes in the cost of living are making life | | | | The same as an ordinary home purchase, buying at |
| very difficult for homeowners who stretched their | | | | auction requires a deposit. You'll generally need to fork |
| finances too far when house prices were high. | | | | out 10% of the purchase price, which means you need |
| But there's a bright side to every story. The positive | | | | to have a firm grip on exactly what you can bid based |
| slant on this terrible situation is that there are an | | | | on how much cash deposit you can scrape together. |
| increasing number of opportunities for buying a | | | | You pay the deposit as soon as you've bought a |
| repossessed home. If buying a home of your own has | | | | property, before you leave the auction house. |
| been an unreachable dream for the past decade, it | | | | After that you have 28 days to pay the balance, no |
| might soon be a reality. Interest rates are at an all time | | | | excuses. Buying a repossessed home at auction is a |
| low and mortgage rates should eventually follow. If | | | | legally binding contract and you can't back out. |
| you're a first time buyer without a property to sell, the | | | | Because the wheels of mortgage lenders tend to turn |
| world's your oyster... provided you can borrow the | | | | very, very slowly it's wise to get your loan agreed |
| money. | | | | before you go anywhere near an auction house. |
| Obviously there are advantages and disadvantages to | | | | In difficult times, auction mortgages are as rare as |
| buying a repossessed house or flat. The smoother you | | | | ordinary mortgages. There are fewer deals around |
| can make the process and the more pitfalls you can | | | | and - perhaps unsurprisingly - nobody seems to be |
| manage to avoid, the more successful your first step | | | | advertising auction-specific deals. The first port of call |
| onto the property market will be. | | | | should be your bank. Provided you have a good |
| Most people think auctions when they think about | | | | relationship with them, they should be able to give you |
| home repossessions. And that's a good place to start. | | | | a very quick decision about whether or not they'd be |
| The USA has a database of repossessed homes but | | | | prepared to lend the money to buy a repossessed |
| the UK doesn't, and many UK home repossessions | | | | house. |
| are sold at auction by lenders. | | | | Once you know what your bank can or can't offer, it's |
| Household name auction house Allsops is an | | | | a good idea to let a Mortgage Broker loose on your |
| independent property consulting company with a solid | | | | case. Independent brokers, unlike tied brokers, have |
| reputation for residential property auctions. Probably | | | | access to the entire UK mortgage market and can |
| the UK's largest, they sell around a billion pounds' worth | | | | trawl around to find you the best deal. And they know |
| of homes a year at auction, spread across seven | | | | the lingo, which helps. A tip: remember to tell your |
| massive auctions a year with between 250 and 350 | | | | broker that you want a mortgage specifically for |
| properties at each auction. A good choice if you feel | | | | buying a repossessed home at auction. He or she will |
| safer dealing with a well known brand name. But there | | | | co-ordinate your mortgage approval date with your |
| are also local property auctions in most major towns. | | | | chosen auction date so everything is ready in good |
| Estate Agents also sell repossessions, although they | | | | time. |
| don't always proclaim the fact. You'll have to actually | | | | But what of the future? |
| go in and ask. Another route into buying a | | | | Will we all be knee deep in low cost repossessed |
| repossessed home is to simply ask around the banks | | | | homes and flats for the next decade? Are property |
| and building societies in the area you want to buy, | | | | prices due to keep falling, or will they recover? |
| personally. While they don't openly advertise | | | | Predictions are mixed. |
| repossessions they need to sell the repossessions on | | | | Savills is another of the property big boys, a leading |
| their books and they'll probably be happy to give you | | | | name in UK residential estate agency and commercial |
| details. Another simple way to find repossessed | | | | property. While they don't auction repossessed homes |
| homes for sale is check for announcements in the | | | | they do a great deal of research into the housing |
| local papers. Offers are always publicised in case a | | | | market and their views are well respected. In an article |
| better offer comes along, to ensure the best possible | | | | published in The Times on 14th November 2008 Savill's |
| deal for the seller. | | | | Head of Residential Research Yolande Barnes said, |
| The internet has revolutionised buying repossessed | | | | "... the roots of Britain's downturn lie in the credit crisis |
| homes. There's a good choice of specialist online | | | | and the consequent withdrawal of funding by lenders... |
| providers who collect together UK house repossession | | | | The UK housing market really is a different country: in |
| auctions in one place so you can search them | | | | the US as many as one home-owning household in 16 |
| effectively from one place, | | | | has defaulted on its mortgage or faces repossession, |
| Repossessedhousesforsale.co.uk is one. They hold a | | | | compared with fewer than one in 200 in Britain. To |
| database of UK auction properties including details of | | | | predict that the UK housing market will fall by 40 per |
| local auctioneers and auction dates, and provide links | | | | cent and remain at these new, corrected levels is to |
| to online auction catalogues, property details and guide | | | | ignore the role of finite supply and the use of equity." In |
| prices. A great way to save time. | | | | other words, don't be fooled by all the doom and |
| Whichever route you arrive at an auction by, buying a | | | | gloom. |
| repossessed home at auction can save you a fortune | | | | |