Buying repossessed houses - All about successfully buying a repossessed house.

Buying repossessions can be a great way to get on the property ladder, or grab an otherwise unaffordable bargain. Before buying a repossessed house, there are things to think about.

What happens when you buy a repossessed property?

When selling a repossessed house, the lender publishes an official ‘Notice of Offer’ in the local newspapers. This acts as formal notification that the lender has received an offer. And it gives them the opportunity to get a higher price if an interested party reads the notice then makes a counter offer. Luckily the opportunity to counter offer is restricted to a specific date, not open ended. But if someone makes a higher offer you’ll probably lose the house unless you can beat it.

Extra costs to factor in

If your offer to buy a repossessed home is successful, bear in mind that you might have to pay for essential services like water, gas, telephone, internet and electricity to be reconnected. And because you’ll probably also be asked to pay for repairs when buying a repossessed house, you’d be wise to arrange a full survey before you take the final plunge.

When buying a repossessed house you might find that creditors come to you looking for the previous owner, via calls or letters from bailiffs. The best thing to do is reply promptly and let them know that you’re not the person they’re after. Worse still, you may have problems getting credit because the previous owner’s details have been lodged with a credit reference agency. If you’re buying a repossessed house it is a good idea to check as soon as you’ve made the purchase, and ask the credit reference agency to correct their records before things get complicated.

•    Equifax.co.uk 0870 010 0583
•    Callcredit.co.uk 0870 060 1414
•    Experian.co.uk 0870 241 6212

Agencies generally charge a small a fee of £2 to send you a copy of the data and you should get it, including details about how to change the information, within seven working days.

The Citizens’ Advice Bureau will also give good advice and guidance to those buying a repossessed house, as will the solicitor who is dealing with the sale. Either way, it’s wise to take all the advice you can find to help you avoid potentially expensive pitfalls.

Repossessed houses: amazing bargains or a risky strategy?

Repossessed houses are homes being sold by the bank or building society which has repossessed them, to whom they legally belong.

Buy repossessed property and make big savings

It isn’t surprising that the recent sharp increase in repossessed homes has resulted in more and more people taking advantage of the situation. Because repossessed properties often sell for less than if they were sold under normal circumstances, there’s the potential for big savings. Aspiring first time buyers are benefiting from a unique opportunity to get hold of a really good deal. People who have been, so far, unable to get on the property ladder are suddenly able to find affordable housing, if they can get a mortgage.

How to find repossessed houses for sale

If you’re buying a repossessed house, you might find yourself having to search hard for suitable properties. Not because they’re rare, but because many estate agents prefer to keep repossessed houses’ status quiet. To most people repossession is bad news. And as far as estate agents’ reputation is concerned, the concept of repossession is far from positive! Some tips on buying a repossessed house:

1.    One way to find repossessed property is to enquire with your local mortgage lenders; usually banks and building societies. While they don’t usually advertise repossessed houses up front, they need to sell these properties to recoup their money and they’re usually more than happy to get enquiries.
2.    Another way… check your local papers, where mortgage lenders announce offers they’ve had on repossessions in the hope of getting higher offers.
3.    It also helps to keep an eye on your local property auctioneer.

How to Find Find repossessed properties

A few things to bear in mind when buying a repossession:

•    Repossessed houses aren’t always in perfect condition, especially if the previous owner didn’t have the money to keep up maintenance. You might find damp, leaks, faulty drains or broken heating systems.

•    You might find you need to do a lot of cleaning, especially when the property has been empty for some time.

•    Sometimes, a home is repossessed because the original owner simply hasn’t been able to sell quickly enough to avoid repossession. There might be a good reason for this; terrible traffic congestion, a noisy pub in the same street, no local train service or one right outside your back door… it’s wise to check carefully.