Repossession Properties
Repossession Properties
Repossession Properties
Repossession properties are typically houses that have either been repossessed buy a finance lender or are about to be repossessed. When people find themselves facing repossession they are often open to ideas as to how they can avoid the inevitable. The way we approach a repossession property deal is not to perceive the vendor as 'prey' or an easy target with no where to run. Treat them as you would like to be treated. They are just person who for what ever reason have made bad financial decisions in life and unfortunately have wound up with their homes on the repossession properties list.
The Individual
If a house owner fails to maintane their mortgage repoayments they will find themselves on the repossession properties list. By the time they realises that their home is going to become a repossession property, they have often left it too late to do much about it. They are often very stressed and frightened and they need somebody who understands their plight and will sympathise with them. The skill of acquiring repossession properties is often twofold: firstly you need to win the trust of the home owner and secondly you need to negotiate with their finance lender and agree a settlement figure. Negotiating for repossession properties is quite a skill, and if you need help please call us on Tel: 01926 431088
Stop the Repossession
When sourcing repossession properties you need to move quickly. This is the one style of deal where everything needs to be done at once. Questions: Will this property make a good investment? How much does the current owner owe to the banks and can I afford to pay them this much for it? What condition is the property in? When is the property due for repossession? You need to know the answers to all of these questions before you move. Lets assume that the owner has looked after the house, but has over mortgaged the house and is facing repossession in five days time: You need to speak to the owner, speak to their lender and agree a deal before the house is added to their repossession properties list. Often a lender would rather agree a sale with you than have to go to the trouble of appointing bailiffs, court costs, removal firms, auction costs, etc. If you put a sensible offer in to a bank for a repossession property, they usually accept it.
Sale & Rent Back of repossession properties
This used to be a great market with a classic win win scenario for both the buyer and seller. However, things change, the government has rushed through a piece of legislation regulating this area of the market. Now in the UK, if you wish to buy a house from the owner and intend to rent it back to him you need to be regulated by the FSA. Unfortunately, if you contact the FSA and ask if you can become regulated you will probably be told that they have not yet drawn up the specific terms of the regulation. Our interpretation of this is that you will have to sign up and be accountable against a set of rules that currently doesn't exist. Therefore the chances of being in breach when doing a sale and rent back of a repossession property could be quite high. We suggest you air no the side of caution.