If you’re looking to acquire a repossessed property for sale in the UK, the fastest way to find what you need is by searching the DealSourcing.co database. DealSourcing.co is the most extensive real-time database of repossessed properties, auction properties or properties requiring refurbishment in the UK.
DealSourcing.co mitigates time-consuming tasks when looking for your next property deal. This property sourcing software allows you:
- Search 230+ of the UK’s planning portals from a single interface.
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Is it safe to buy a repossessed house?
Yes, of course. As a buyer, there are several benefits to purchasing a repossessed home – especially if the amount owed to the bank is less than the home’s market value. As with all property purchases, location is vital. It is best not to compromise on location just to get a perceivably good deal.
How long does it take to buy a repossessed house?
The process of buying a repossessed property at auctions is very different from buying a repossessed property through an agent, as once the gavel goes down, you have effectively exchanged contracts, so neither party can back out. As before, however, you must complete the transaction within 28 days.
How does buying a repossessed house work?
Repossessed properties are sold by mortgage lenders when the owner has been unable to meet the repayments. They are often seen as a way of buying property cheaply, since it is assumed that the lender will want to get rid of the property quickly and recover the mortgage loan, rather than holding out for the best price.
If I’m buying a repossessed house, where should I look?
Repossession of a property is what happens as a result of a borrower being unable to consistently meet their mortgage repayments each month. In such circumstances, a lender has a legal right to reclaim the security they hold in order to recoup the outstanding amount borrowed.
Taking back the ownership of a property is only half the job. The lender then has to arrange to sell the property as soon as possible with the primary aim of being able to cover all the outstanding debt plus any other costs involved during this process.
Is it always cheaper buying repossessed houses?
It’s not unusual to see repossessed properties sell for anywhere between 20-30% less than their market value, however, there’s no guarantee that this will be the case.
A lender’s approach to selling a repossessed property is usually very different to an owner’s under normal circumstances.
Whilst a lender is legally obliged to continue to serve the interests of the owner by ascertaining the best price possible for the property, in reality, they will want to make a sale as soon as possible.
In this regard, a lender is unlikely to incur any more costs than necessary, therefore, will take minimal action in preparing the property before it is made available for sale. This, ultimately, could affect the resale value and offer the opportunity of buying repossessed houses from banks (or other lenders) much cheaper than might normally be the case.
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