Buying Repossessed Property at Auction
Buying a repossessed property at a public auction could be an excellent way
to make great savings on buying a property whether it is for your own home or a
buy to let investment.
- A repossessed home may not be in the best condition if the owner was so
short of cash that the property was neglected. Therefore it in all
likelihood the property will need quite a bit of money spending on it to
bring it into a habitable condition.
- If the property has been repossessed by the lender it maybe a case that
the property under the repossession order is in bad location. It may be a
case that the owner who originally purchased it was living in a poor area,
and to buy the property they would have got a sub prime mortgage. Its quite
likely that there will be others in the same area who are struggling to keep
up repayments, so therefore it may not be such a great place to live.
- Ensure that you have the finance available for payment once the auction
completes. You would usually have to provide a 10% deposit plus the
remainder within 28 days of the auction.
There is no readily available repossession list of properties available, the
best approach to finding one is to check the auctions in your region and have a
look through all there auction catalogues.
Some auction houses specialise in public lenders repossessions from mortgage
lenders, one such auction house is REDC who hold auctions throughout the
country.
REDC who operate in the UK from the website
www.auctiontoday.co.uk is is one of
the world's largest real estate auction firms. Since 1990, REDC has sold in
excess of $5 Billion of real estate assets.
Now operating in the UK, the downturn that the UK is currently going through
will see more and more homes repossessed and properties going to auction with
companies like REDC.
