Determine What To Pay For A Property At Auction 

Finding Property Repossessions

Picking up a bargain property is becoming easier for many people. With the growing number of property repossessions, buyers now have an extremely affordable option in a period when property prices are climbing higher.

Property repossessions are fast becoming the primary way for many people to pick up a property bargain. As interest rates rise and begin to bite, more and more repossessed houses will be put up for sale. According to government figures, the number of people in England who have had their homes repossessed has soared in the first part of 2007 and the figures are expected to increase to at least 40,000 in 2008. The figures are up more than 23 per cent compared to last year, and a dizzying 300 per cent increase to figures from 2004. Experts say that this is what normally happens when affordability becomes a problem.

While this may do damage on the property market in general, it does provide first-time buyers with a unique opportunity to get themselves on the property ladder. Repossessed properties offer buyers an extremely affordable alternative in times when property prices are soaring fast. For investors, this means that they have more opportunities to find bargain properties.

If you want to take advantage of these bargains, you can check out auctions. Thousands of homes are available at any given time at property auctions, a lot of which are sold at prices way below the property’s market value. Auctions are usually places where you’ll find household repossessions, aside from investment properties and rundown properties.

But identifying repossessions at auctions can be difficult. This is because banks/building societies can be wary about disclosing that they are repossessing a lot of properties. Thus, you must be vigilant for clues. There are some catalog entries that may reveal a bank is the seller of a property or a number of properties. Or, the auction catalog may include a phrase such as "by order of mortgagees in possession" or something similar. This is one proof that the property being sold is a repossession.

If going to auctions to scout for repossessed properties doesn’t appeal to you, then you can use companies that offer to help stop repossession by offering services to buy a property and then rent it back to the owner. In this setup, the companies give the owner a choice, instead of leaving the lender to take their property. They can stop the eviction and sell their property at a discount, then rent it back. Usually, the companies that provide the service offer to purchase the property at a price between 75 per cent and 90 per cent of its open market valuation.

While there are many benefits of buying repossessed properties, there is a need for would-be buyers to be aware of certain conditions regarding these kinds of purchases. A repossessed home may not be in excellent condition, as most owners of repossessed properties are short of money. Also, some repossessed homes are poorly located so make sure to inquire why a home ended up being repossessed.

The best way to determine which repossessed properties may be available is to inquire at your estate agents and auctioneers. Also, make use of the ready made deals service on our website where we list over 30 below market value property deals every month.

Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - http://www.Property-System.com

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