Finding a home you can afford can be really hard in this day and age. The days of banks giving 100% loans are far gone and everyone needs to put a very hefty deposit down. If your search for an affordable home doesn’t deliver, it may be time for you to have a look into buying a bank repossessed property.
A property is normally repossessed when the lender fails to pay his or her loan payments regularly. The bank then has its lawyers to obtain a court order to lay claim on the borrower’s movable property. When this still doesn’t cover the outstanding payments, the bank repossesses the house in order to sell it off to get its money back from the loan it gave out. This is done only if the bank has no other alternative and as a last resort.
Bank repossessed properties are therefore sold off to the highest offer above the banks set reserve price, so you can come away with quite the steal. Understandably the demand for bank repossessed property has soared. Banks are known to relax their lending criteria when the borrower wants to buy a bank repossessed property, so for first-time buyers this isn’t a bad option.
Another advantage when buying a bank repossessed property is that the buyer does not pay any transfer fees on the purchase and the transaction process are normally much quicker than when buying a normal property. Bank repossessed property can be a great investment, but before you start bidding make sure you have legal proof that you’ll be able to pay the price you’ve offered. Also visit the property you want to bid on beforehand and have a professional inspect it for any damage you might have to repair.