Property Repossession Rates: Top Ten States
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Sunday, 25 October 2009
Sunday, 27 September 2009
Wednesday, 26 August 2009
Top Tips For Buying Repossessed Homes At Auction
Currently, repossession properties make up 20% of all homes sold at auction. This figure is constantly rising due to the financial crisis in the UK. Banks and lenders are now moving even more quickly when it comes to repossessed houses and are looking to sell them on their first day listed at auction. What does this mean for potential buyers? low prices. The banks and lenders will be willing to sell low in order to force a quick sale and recoup funds.
Property auctions are the best place to buy repossessed homes, but it's important to know what you are doing and not end up paying over the odds. Below we have added some quick tips to Repossessed Homes UK so that you can hopefully pick up a bargain repossessed property.
1. Do Research
- Make sure you know the area you are buying in.
- If buying to let then know the rental market.
- If the area has Universities or hospitals nearby then finding tenants will be easier.
- Check the market rate in the area especially on the same street.
2. Auction Trial Run
- Visit Property Auctions as a test and familiarise yourself with the process.
- Watch how others bid.
- Obtain Auction Catalogues from auctioneers.
- If interested in a particular property see if there are other documents available from the auctioneers.
3. Visit The Property
- Make a visit to the property, don't just rely on catalogue descriptions.
- Take a builder with you if possible to get an idea of how much renovations may cost.
4. Pay for a Survey
- Surveys are essential and can ultimately save you thousands if it means you avoid buying a dud property.
5. Have a Price Limit and Stick to It
- When attending auction, have a maximum bid price in your head for a particular property and STICK TO IT. It's easy to get carried away in auctions with other bidders present but it can ultimately prove costly.
6. Arrange a Mortgage Before The Auction
- Don't bid on a repossession property unless you are sure you can get a mortgage.
- Exchanges are done on the day of property auctions.
- You will need to complete within 20 days.
- Never apply for a mortgage after you buy at auction, if your application is rejected you risk losing your deposit.
7. Make Sure Your Deposit is ready
- Make sure you have the 10% ready to put down as deposit on your repossessed property.
- Take chequebook and identification to the auction.
8. Factor in all Costs
Remember that there will be many costs involved and don't forget to budget accordingly.
- Survey Fees
- Deposit
- Auction Fees
- Stamp Duty
- Solicitor's Fees
- Renovation Costs for the repossessed house
- Insurance Costs
- Future Mortgage Payments
- Other Costs
9. Calculate Taxes You May Need to Pay in the Future
10. Cover your Mortgage Payments
- If buying to rent the property out, it is not certain that you will get a tenant on the first day, or if there is renovation you will have to wait for a tenant. During this time the mortgage will still need to be paid so factor this in also. We advise to have at least 3 months payments in reserve.
Property auctions are the best place to buy repossessed homes, but it's important to know what you are doing and not end up paying over the odds. Below we have added some quick tips to Repossessed Homes UK so that you can hopefully pick up a bargain repossessed property.
1. Do Research
- Make sure you know the area you are buying in.
- If buying to let then know the rental market.
- If the area has Universities or hospitals nearby then finding tenants will be easier.
- Check the market rate in the area especially on the same street.
2. Auction Trial Run
- Visit Property Auctions as a test and familiarise yourself with the process.
- Watch how others bid.
- Obtain Auction Catalogues from auctioneers.
- If interested in a particular property see if there are other documents available from the auctioneers.
3. Visit The Property
- Make a visit to the property, don't just rely on catalogue descriptions.
- Take a builder with you if possible to get an idea of how much renovations may cost.
4. Pay for a Survey
- Surveys are essential and can ultimately save you thousands if it means you avoid buying a dud property.
5. Have a Price Limit and Stick to It
- When attending auction, have a maximum bid price in your head for a particular property and STICK TO IT. It's easy to get carried away in auctions with other bidders present but it can ultimately prove costly.
6. Arrange a Mortgage Before The Auction
- Don't bid on a repossession property unless you are sure you can get a mortgage.
- Exchanges are done on the day of property auctions.
- You will need to complete within 20 days.
- Never apply for a mortgage after you buy at auction, if your application is rejected you risk losing your deposit.
7. Make Sure Your Deposit is ready
- Make sure you have the 10% ready to put down as deposit on your repossessed property.
- Take chequebook and identification to the auction.
8. Factor in all Costs
Remember that there will be many costs involved and don't forget to budget accordingly.
- Survey Fees
- Deposit
- Auction Fees
- Stamp Duty
- Solicitor's Fees
- Renovation Costs for the repossessed house
- Insurance Costs
- Future Mortgage Payments
- Other Costs
9. Calculate Taxes You May Need to Pay in the Future
10. Cover your Mortgage Payments
- If buying to rent the property out, it is not certain that you will get a tenant on the first day, or if there is renovation you will have to wait for a tenant. During this time the mortgage will still need to be paid so factor this in also. We advise to have at least 3 months payments in reserve.
Repossessed Homes Legal Advice Fund Doubled
With so many property repossessions occurring in UK, the Government is providing extra funding for free legal advice at courts. The fund which currently stands at £750,000 has been doubled to £1.5 million.
This means that all courts in England now provide free legal advice for people who attend repossession hearings in court. Legal services previously funded the repossessed homes desks at court, but this injection of government money has helped double the number of desks in English crown courts.
The government claim that in that four out of five cases these desks help stop immediate repossession or avoid evictions, and that even at this late stage in the repossession process there is hope that a person can avoid losing their home.
This extra funding comes amid recent figures showing huge increases in the numbers of people whose properties were repossessed in the first quarter of 2009. The Council Of Mortgage Lenders (CML) have also released figures which illustrate a 50% increase in repossession levels in the same period.
The announcement comes as the Financial Services Authority is expected to publish figures showing an increase in the number of people who had their homes repossessed during the first quarter of the year. The CML have stated that a record 75,000 homes have been repossessed already this year.
The UK government have introduced a new range of schemes in order to aid people and help avoid home repossession. This includes the Homeowner Mortgage Support Scheme which allows people to defer 70% of their interest payments for up to 2 years. Another scheme, the Pre-Action Protocol restricts courts from only issuing repossession orders when there is no other alternative. However, figures show that only 2 homeowners have actually benefitted from this initiative.
This means that all courts in England now provide free legal advice for people who attend repossession hearings in court. Legal services previously funded the repossessed homes desks at court, but this injection of government money has helped double the number of desks in English crown courts.
The government claim that in that four out of five cases these desks help stop immediate repossession or avoid evictions, and that even at this late stage in the repossession process there is hope that a person can avoid losing their home.
This extra funding comes amid recent figures showing huge increases in the numbers of people whose properties were repossessed in the first quarter of 2009. The Council Of Mortgage Lenders (CML) have also released figures which illustrate a 50% increase in repossession levels in the same period.
The announcement comes as the Financial Services Authority is expected to publish figures showing an increase in the number of people who had their homes repossessed during the first quarter of the year. The CML have stated that a record 75,000 homes have been repossessed already this year.
The UK government have introduced a new range of schemes in order to aid people and help avoid home repossession. This includes the Homeowner Mortgage Support Scheme which allows people to defer 70% of their interest payments for up to 2 years. Another scheme, the Pre-Action Protocol restricts courts from only issuing repossession orders when there is no other alternative. However, figures show that only 2 homeowners have actually benefitted from this initiative.
Repossessed Homes UK: £50 Council Handout To Ease Recession Pain
Manchester City Council are to investigate the idea of paying homeowners' "cashback" in an attempt to help them through the credit crunch and ultimately avoid repossession. Each household could be given £50 each to help through the recession. Many people in the UK are currently stuggling with mortgage repayments and with tnis extra money coupled with other government initiatives to help people with repossessed homes, this could ultimately help in stopping their home from being repossessed at a time when every penny counts.
This decision has come as local authorities throughout the UK are drawing up measures to stop unemployment soaring and stop businesses from going under.
This "cashback" initiative would mean that every household in the city would receive a cheque or get a one month reduction in council tax bills. The scheme was initially proposed by the Lib Dems and subsequently, the Labour government agreed to investigate the idea further. A report into the feasibility and cost-effectiveness will be drawn up next week.
A similar scheme was tested in London, but proved to be too expensive, and with 200,000 households in Manchester, the total amount of cashback paid could be £10 million. Would it not be better to spend this amount on a project which would benefit the whole community.
This decision has come as local authorities throughout the UK are drawing up measures to stop unemployment soaring and stop businesses from going under.
This "cashback" initiative would mean that every household in the city would receive a cheque or get a one month reduction in council tax bills. The scheme was initially proposed by the Lib Dems and subsequently, the Labour government agreed to investigate the idea further. A report into the feasibility and cost-effectiveness will be drawn up next week.
A similar scheme was tested in London, but proved to be too expensive, and with 200,000 households in Manchester, the total amount of cashback paid could be £10 million. Would it not be better to spend this amount on a project which would benefit the whole community.
REDC Repossessed Homes Auction
It's fast, furious and could be the future of property buying. Hundreds of houses went under the hammer in the region's first property auction dedicated to selling repossessed homes and repossession properties.
Prospective buyers were hoping to pick up a bargain during bidding and hopefully turn their house into a home. Plush semi-detached homes which could have been expected to sell at £120,000 were sold at a fraction of their value.
The auction was being run by American organisation, REDC (Real Estate Disposition Corporation). Most properties are selling for around half the price at which they've been valued and advertised by estate agents for the last six months. A top table of lenders sits just below the auctioneer, giving each final bid the thumbs up or down.
Prospective buyers were hoping to pick up a bargain during bidding and hopefully turn their house into a home. Plush semi-detached homes which could have been expected to sell at £120,000 were sold at a fraction of their value.
The auction was being run by American organisation, REDC (Real Estate Disposition Corporation). Most properties are selling for around half the price at which they've been valued and advertised by estate agents for the last six months. A top table of lenders sits just below the auctioneer, giving each final bid the thumbs up or down.
UK Houses Repossessed
The total number of UK houses repossessed in 2008 is estimated to be in the region of 40,000. This is already a high figure and the numbers for 2009 are expected to be even higher according to the Council of Mortgage Lenders.
The number of homes which were in arrears on their mortgage payments has also increased year on year, with an estimated 220,000 homes in arrears of over 3 months at the end of 2008.
The Council of Mortgage Lenders which produces these figures state that the number of houses repossessed in 2009 will exceed the 2008 figures with the global ecomonic crisis and credit crunch affecting more and more homeowners.
With unemployment figures rising and the number of people expected to lose their jobs over this year due to increase, it is expected that 1 home will be repossessed every 10 minutes in the UK.
Affects of Repossession
Property Repossession can affect people in different ways. For the majority it is a very stressful time and usually occurs when coupled with other bad circumstances. For example, loss of job or break up of marriage could be a factor which can lead to someone losing their home. It can also be due to illness or death.
Often people are forced to move in a hurry once evicted and this upheavel can also add to the emotional stress of the situation. This will not only affect the homeowner but also their family as well. Children are often the biggest victims as they are forced to move to a new environment, often a new school with no clear idea of why this is all happening. Parents are embarrassed to face their children as well as their families and friends and explain the situation they are facing. Repossessions can also lead to the break up of marriages and the breakdown of relationships, so its important to know where to go for help.
Many companies advertise that they can stop repossession etc and help your situation, but often these organisations are just trying to benefit further from your awful circumstances.
Although mortgage companies are often sympathetic to certain situations, failure to meet these payments will result in houses being repossessed.
If you are facing repossession, Repossessed Homes UK can help you on advising what to do by providing free information and advice. Our Links and Advice section is also a good source of accessing info on companies who can assist.
The number of homes which were in arrears on their mortgage payments has also increased year on year, with an estimated 220,000 homes in arrears of over 3 months at the end of 2008.
The Council of Mortgage Lenders which produces these figures state that the number of houses repossessed in 2009 will exceed the 2008 figures with the global ecomonic crisis and credit crunch affecting more and more homeowners.
With unemployment figures rising and the number of people expected to lose their jobs over this year due to increase, it is expected that 1 home will be repossessed every 10 minutes in the UK.
Affects of Repossession
Property Repossession can affect people in different ways. For the majority it is a very stressful time and usually occurs when coupled with other bad circumstances. For example, loss of job or break up of marriage could be a factor which can lead to someone losing their home. It can also be due to illness or death.
Often people are forced to move in a hurry once evicted and this upheavel can also add to the emotional stress of the situation. This will not only affect the homeowner but also their family as well. Children are often the biggest victims as they are forced to move to a new environment, often a new school with no clear idea of why this is all happening. Parents are embarrassed to face their children as well as their families and friends and explain the situation they are facing. Repossessions can also lead to the break up of marriages and the breakdown of relationships, so its important to know where to go for help.
Many companies advertise that they can stop repossession etc and help your situation, but often these organisations are just trying to benefit further from your awful circumstances.
Although mortgage companies are often sympathetic to certain situations, failure to meet these payments will result in houses being repossessed.
If you are facing repossession, Repossessed Homes UK can help you on advising what to do by providing free information and advice. Our Links and Advice section is also a good source of accessing info on companies who can assist.
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