With unprecedented levels of repossessions in 2008, many are expecting the number of repossessed houses sold at property auctions to go through the roof. Buying houses at property auctions can provide bargains.
The trend for selling repossessed houses at property auctions has seen a massive increase and a leading auctioneer states that the number of repossessed homes that sold at a property auction in 2007 was double the number sold in 2006. Property auctions will invariably be the medium by which the creditors who have repossessed the property choose to sell it.
Property Auction – A Big Business In Repossessed Homes
Research conducted by a leading property auction company showed that nearly 40% of all properties going under the hammer at property auctions were repossessed by banks or building societies. Gary Murphy, a property expert, looks at the reasons behind the sudden upsurge in repossessions and why these homes find themselves in property auctions, "The rise in repossessions is down to the fact that borrowers are having difficulties repaying their loans and a large proportion of these are buy-to-let investors who failed to appreciate the pitfalls of property investment".
Property Auction – Why Repossessed Homes End Up At Auction
Many industry experts are pinpointing the massive upturn in repossessions in 2008 on the fact lenders, especially sub-prime lenders, have tightened their lending criteria. A lot of sub-prime lenders are now refusing to lend more than 75% of a property's value. The problem this presents, and why many homes end up at a property auction, is that large numbers of homeowners who could only muster a small deposit when they bought their homes, will not be able to lay their hands on a larger lump sum to make up the difference when their mortgage deal comes to an end. As such, many homes will experience a defaulting on their mortgage payments and, ultimately, be repossessed and placed on a property auction.
Find your property bargain with Discount Property Auction
If you need help to get a faster sale, want to sell and rent back or are looking to buy a property at auction, contact Discount Property Auction. We're committed to helping you, whatever your circumstances. If you want to sell your home, you can use our dedicated online auction facility, which allows you to upload your property yourself and put it in front of genuine, interested buyers. Call us now on 0800 1313 999 or email admin@discountpropertyauction.co.uk.