A repossessed property is a home that has been taken by the lender due to the fact that the person that was living there wasn’t able to pay the mortgage. This property is then sold on to recoup the lender’s money, this means that you could get a good deal and a bit of a bargain, as the lender usually wants to sell quickly, and the property will be a lot cheaper. Most repossessed houses are sold over estate agents, therefore, in this case, you might not know that the property is even repossessed – possible signs that the property is repossessed could be that the property is on the market for a lot cheaper than you would expect and the home is vacant.
Buying and getting a mortgage for a repossessed house isn’t any harder than going through the same process for an average home. As with any other home, it’s practical to visit it a number of times before making an offer. If you are concerned about any issues with regards the structure of the building it may be worth visiting with a builder or assessor before. Repossessed houses are most likely to be empty for a long time, your lender will want to commence an evaluation before loaning you the mortgage amount and the value might be lower than expected if the property hasn’t been looked after. Just because the property is that bit cheaper and a little bit of a bargain it doesn’t mean that you should skip all of the vital checks. Getting a mortgage with a repo house shouldn’t be any more difficult than for properties of the same type of value sold in the standard way, but it is worthwhile speaking to a mortgage advisor who will be able to help with any issues that the lenders may have with the house that you want to purchase.
The most significant thing to take away when you are purchasing products and auction is it immediately places you in a legally binding contract. The deposit is also needed straight away. Don’t assume that the property is how it looks in the images they have shown on the screen always ask to have a look at the property in detail first. A bank or lender may try to sell through an estate agent as this may result that they get a higher price for the property. But if this expectation is not met or the mortgage lender wants a really quick sale in order to clear the outstanding charges as quickly as possible then it is likely that it will go straight into the auction.
After you have your keys and have moved into your new home everything should be smooth running but there are a few things that you should check a few months after you have moved in. you may find that you are still receiving letters in the old homeowner’s name demanding you to pay bills etc. don’t open these just ring the companies and let them know that they no longer live there and make the estate agent aware that you got the house from.
We hope that this article has provided you with help in understanding repossessed houses. If you have any questions, please don’t hesitate in getting in touch by emailing us at [email protected] or head over to our website.
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