Repossessed Homes UK

Repossessed House Auctions

2011-08-26T03:51:00.000-07:00

Repossessed House Auctions

The average UK home costs around £200,000 whereas the average price of houses sold in auctions are around £130,000 to £170,000. This enables many people ranging from hard-pressed buyers to first-time owners to go to auctions for foreclosed properties. Thousands and thousands of repossessed homes are auctioned as banks and lenders are much more interested in selling the property rather than making a huge profit. However, buying in an auction needs a lot or preparation and planning so that you would not end up making a costly mistake.

Do the groundwork
It is wise to do your research on the property. It is best to check out the location of the property and the establishments near it. The neighbourhood and location can also determine the market value of the property so it is best to pay a visit and see it. Often catalogues and text descriptions will simply not paint a clear picture of the property's condition. Paying a visit can give you a first-hand look at the positive and negative aspects of the property. Furthermore, visiting the house will give you an opportunity to take a builder to assess any future repairs that might be needed. It is also important to get a survey on the property for a basic evaluation to ensure the structural integrity of the property.

It is also best to get yourself acquainted with how a repossessed house auction works. It can become a bit overwhelming and nerve-racking to bid in an auction so it would be best to familiarize yourself with the process. You can also ask for a catalogue with the properties to be auctioned. This would allow you to research on what would be a fair price for the property based on other similar repossessed homes in the area.

Set a price limit
Set your highest bid and stick to it. Do not get pressured and engage in a bidding war – other bidders might push the price higher and higher and the property might not necessarily be worth it anymore. You should also estimate potential expenses such as repairs, redecorating, legal and surveying fees and all of these on top of your mortgage. There might be a buyer’s fee for the auction house. Additionally, there might also be tax fees that you would need to settle.

Arrange your finances and mortgage before the auction
If your bid on the property is successful, you would need to pay an initial deposit, usually 10% of the amount on the spot. It is usually paid using a cheque as cash is not accepted. You would need to complete the payment on an agreed date, or else your deposit will be defaulted. So it would be best to make sure you can get a mortgage before that date.

Over 300 companies run auctions for residential properties in the UK. The process of buying repossessed homes in an auction can indeed be very overwhelming. So make sure to do your homework to ensure that you are making the right investment.

Visit our repossessed house auctions homepage and click on your local area in the right menu bar to get lists of auctions close to you.

Property Repossession Rates: Top Ten States

2009-10-25T11:44:00.001-07:00

Property Repossession Rates: Top Ten States

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Protecting Your Property From Repossession

2009-09-27T06:00:00.001-07:00

Protecting Your Property From Repossession

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Top Tips For Buying Repossessed Homes At Auction

2009-08-26T16:41:00.000-07:00

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.

Repossessed Homes Legal Advice Fund Doubled

2009-08-26T16:29:00.000-07:00

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.

Repossessed Homes UK: £50 Council Handout To Ease Recession Pain

2009-08-26T16:28:00.000-07:00

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.

REDC Repossessed Homes Auction

2009-08-26T16:26:00.000-07:00

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.

UK Houses Repossessed

2009-08-26T16:24:00.000-07:00

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.

Repossessed Homes FAQs

2009-06-21T02:44:00.000-07:00

What is an N244 Form?
Once you have taken proper legal advice, N244 form is probably the most important document you can have. The form allows you access to appear before the judge again and for a typical cost of £35 . It allows you to have an emergency hearing at any given point, even if you have anb eviction notice the following week for example. It means that you will be bale to appear before the judge to get an eviction turned down.

What Can I Do To Stop My Home Being Repossessed?
The first thing you should do is take advice. We have provided some information of where to get good advice on homes repossession. The judge has no mandate whatsoever to repossess your property and always looks after your best interests. Even if you appear without a solicitor the judge will typically try and help you as he does not want your home to be repossessed. A person whose house is repossessed can then become a burden on the state so the judge will try and avoid this and be on your side. However he is legally bound to use the legal system to seek possession of your property.

Can I Contest a Repossession Order or Eviction Order?
Yes you can contest a repossession order or eviction order. Again you will need a N244 form to get an emergency hearing before the judge. It is important to note that the judge will require some evidence as to why you are contesting. Eg. Remortgage evidence or evidence of sale of the property.

Are there companies that will buy my house and then rent it back to me to avoid repossession?
Yes there are a number of companies on the market who will buy your property and then rent it back to you. each will have different conditions but it must be noted that they are mercenary companies and typically will not pay more than between 65% and 80% of the value of your property. We would usually advise selling on the open market instead, but depending on how fast you need to act and if you want to stay in the property renting your house back from one of these companies can be an option.

How quickly can a repossession be stopped?
A property repossession can be stopped merely by paying all the arrears on the account in full. This will stop an eviction process immediately even if you are at the court stage.

Can I sell my home to avoid it being repossessed?
A home can be sold at any point to any interested parties, even after it has been repossessed provided it hasn't already been resold.

Buying A Repossessed Home At Auction Q&A

2009-06-21T02:36:00.000-07:00

Below are some common questions for property auctions:

Why Should I Buy At Property Auction?
There are numerous reasons for buying at property repossession auctions. All sellers at auction are motivated to sell and want to sell quickly. This often means that they are willing to sell their property at a low price. Often the residential properties will renovation work carrying out which means there is an opportunity for the buyer to make some money and also increase the value of their property. Also once the hammer falls at a property auction there is no chance of going back on a deal so there is a certainty of purchase.

Are there fewer costs in buying through auction or buying through an agent?
In both cases the fees tend to be similar, there will be legal fees and surveyors fees to payas well as any fees to pay in order to arrange finance. When buying at auction you will need to pay an administration fee to the auctioneers which typically falls between £175 and £300 plus VAT.

What type of houses are sold at auction?
The type of properties sold at auction are repossessed properties which have been repossessed by the bank or mortgage company. As a result the properties may be unmodernised or in need of work. These properties are often different to houses sold at normal estate agents as they may not be immediately ready to move into.

What are the risks of buying at auction?
The risks of buying at auction are similar to those of buying through estate agents. It is important to make sure that u have done all of your preparatory work on the repossessed property such as legal searches, checking the title and surveying the property to make sure there are no defects. The important thing to remember is that once the auction is over the deal must be followed through and you are not able to go back to the seller afterwards should any problem arise. There are no guarantees on the purchase and you must buy it as it is.

How do I find a bargain at auction?
The key to finding a bargain repossessed home at auction is to have the maximum number of options available to you. You should search auction sites on the internet and contact auction houses directly. Bargains are often properties which are not so popular, so looking for a property with defects or one which needs work can be a great option. However, its important to have the know how or ability to deal with defects so that it turns out to be a bargain and not an expensive bargain! When buying at auction, many buyers often leave with ownership of their property at a price much lower than what they were prepared to pay and in case this automatically becomes a bargain.

How can I identify repossessed homes at auction?
There are several things to look out for when identifying a repossessed home at an auction. Check the auctioneers catalogue. In some cases it will say "by order of the mortgagees", in other cases it may actually say who is selling the repossession property for example a bank, so the catalogue will say "by order of HSBC". In other times it will say "by order of the receiver". These are all ways of picking up a property repossession home at auction. However, not all properties will have this information in the catalogue. If you suspect the property is a repossessed home, the easiest thing to do is phone up the seller's solicitor and ask them who is the seller.

Sharp Increase in Repossessed Homes at Auction

2009-05-31T06:11:00.000-07:00

With home repossessions on the increase and the state of the UK economy, there has been a sharp increase in the number of repossessed homes sold at property auctions. Properties are being snapped up way below the market price, with some auctioneers claiming to offer repossession properties up to 40% below the normal selling price.

Leading UK property auctioneers, Allsop claim there is a notable increase in the number of properties being auctioned. Allsop state that the number of properties offered at auction has increased in 2008 whilst the overall price has reduced dramatically, a sign that sellers are looking for quick sales.

Allsop state that around 80% of auctioned properties in 2008 were repossession properties. This large figure has since fallen. This fall is mainly due to government action taken on mortgage lenders to reduce the level of repossession and look for ways to avoid repossession. However, Allsop expect the figures to increase again and more homes to be repossessed over 2009.

Allsop also predict that the number of repossessed homes will not fall for some time and the main source for these repossession houses will be the property auctions. They predict this year will be quiet for the retail property sector but cash buyers will always be looking to pick up bargain repossessed homes.

Allsop suggest that poeple often go to auctions to buy cheap properties and they often leave after finding exactly the repossessed home they were looking for at a bargain price.

Why Auctions Are A Good Place To Buy Repossessed Homes

2009-05-18T12:10:00.000-07:00

In the UK, auctions are an excellent place to buy repossessed homes. As soon as the hammer falls the purchase becomes legally binding and an immediate payment of 10% will be required to be paid to the seller’s solicitors. Mortgage companies want to recover losses after home repossession so auctions become an excellent way to sell a property quickly and recover their losses.

For a buyer of a repossessed home, a property auction can be one of the best ways of purchasing a repossession property at a price way below market value. It must also be made clear that the buyer cannot renegotiate a price after the auction is over. Often inexperienced buyers commit to paying over the odds and only find out after a valuation or worse still, a poor survey illustrates some serious problems with the property.

All auction experts advise carrying out full research into a property. They also advise having a maximum bid in your mind on repossession properties and this bid should not be exceeded. A property auction can also be a smooth way of making a purchase, a typical property auction will have 6 or 7 weeks of marketing prior to the event and completion within 4 weeks after the auction. This reduces the chances of delays due to issues of finance, answers to complicated legal enquiries or any other slowdowns. Delays are often common in normal property deals but here properties can be sold and bought in a short space of time.

Repossession auctions can often be extremely competitive and prices often rise over the guide price, so its important not to get carried away in bidding. Experienced auctioneers advise looking out for quieter auctions, if no bids are made on a property it is possible to approach the auctioneers at the end and make a low bid which can be accepted.

Buying Repossessed Homes At Auction

2009-05-18T12:08:00.000-07:00

Why Should I Buy At Property Auction?
There are numerous reasons for buying at property repossession auctions. All sellers at auction are motivated to sell and want to sell quickly. This often means that they are willing to sell their property at a low price. Often the residential properties will renovation work carrying out which means there is an opportunity for the buyer to make some money and also increase the value of their property. Also once the hammer falls at a property auction there is no chance of going back on a deal so there is a certainty of purchase.

Are there fewer costs in buying through auction or buying through an agent?
In both cases the fees tend to be similar, there will be legal fees and surveyors fees to payas well as any fees to pay in order to arrange finance. When buying at auction you will need to pay an administration fee to the auctioneers which typically falls between £175 and £300 plus VAT.

What type of houses are sold at auction?
The type of properties sold at auction are repossessed properties which have been repossessed by the bank or mortgage company. As a result the properties may be unmodernised or in need of work. These properties are often different to houses sold at normal estate agents as they may not be immediately ready to move into.

What are the risks of buying at auction?
The risks of buying at auction are similar to those of buying through estate agents. It is important to make sure that u have done all of your preparatory work on the repossessed property such as legal searches, checking the title and surveying the property to make sure there are no defects. The important thing to remember is that once the auction is over the deal must be followed through and you are not able to go back to the seller afterwards should any problem arise. There are no guarantees on the purchase and you must buy it as it is.

How do I find a bargain at auction?
The key to finding bargain repossessed homes at auction is to have the maximum number of options available to you. You should search auction sites on the internet and contact auction houses directly. Bargains are often properties which are not so popular, so looking for a property with defects or one which needs work can be a great option. However, its important to have the know how or ability to deal with defects so that it turns out to be a bargain and not an expensive bargain! When buying at auction, many buyers often leave with ownership of their property at a price much lower than what they were prepared to pay and in case this automatically becomes a bargain.

How can I identify repossessed homes at auction?
There are several things to look out for when identifying a repossessed home at an auction. Check the auctioneers catalogue. In some cases it will say “by order of the mortgagees”, in other cases it may actually say who is selling the repossession property for example a bank, so the catalogue will say “by order of HSBC”. In other times it will say “by order of the receiver”. These are all ways of picking up a property repossession home at auction. However, not all properties will have thsi information in the catalogue. If you suspect the property is a repossessed home, the easiest thing to do is phone up the seller’s solicitor and ask them who is the seller.