Repossession Houses
A property is usually repossessed when an owner is unable to make mortgage repayments and falls into arrears with the mortgage lender, who – as a result - applies to the courts for the issuing of a repossession order. This is usually followed by an eviction order. That’s how most repossession houses enter the real estate market as houses for sale
Bank Repossessed Houses:
Repossession properties become bank or government property as a result of the above. Bank repossessed houses are resold in order to recoup losses. And as mortgage companies and banks want to recover funds as quickly as they can, they often sell way below market price at local or national property auctions.
Private Property Sales:
With the number of people facing financial difficulty on the rise, coupled with the state of the UK economy, the number of repossessed homes sold at property auctions has increased sharply. Some repossession houses were owned by homeowners who fell behind on mortgage payments, yet many others are new-builds and flats from developers as well as buy-to-letters who fell on hard times.
The Attraction of Repossessed Homes
Cheap Houses:
Cheap Homes
The obvious attraction in repossessed houses and flats is the low reserve, reflected in the guide price. It’s low because although the lender has a duty to sell at the best price, time is money, and they will want to recoup their funds as quickly as possible. Which means that you can buy cheap houses and other properties at an auction for up to 40% below the usual price.
