Where To Find Best Foreclosed Properties In The UK
If you can find them, buying up houses that are in repossession is a wonderful way to get your hands on excellent properties that are selling for way below their market prices. If you are looking for ‘buy to let’ investments, they do not get better than this at all. The problem is that mortgage companies won’t just tell you that those houses are in repossession.
They too want to make some money from this as well as recover what they are owed. So, if they can sell them for a higher price, they will. Which is not good for your potential high returns on investment. So, how do you go about finding these properties?
Be on the lookout for telltale signs of repossession
In many cases, you will not be told that the house you are viewing is in repossession. In fact, most estate agents are strictly forbidden from telling the buyers that the house is in repossession, so they go about their business as usual. But once it comes to the viewing, a discerning buyer will identify a few telltale signs almost immediately. In many cases you will see:
- The windows will be boarded up.
- There will be tape around the facilities telling you not to use the bathrooms.
- They may be several personal possessions strewn across the floors in the rooms.
- It just seems deserted.
In a typical showing, the houses are well staged. You will never get the feeling that no one left there in a hurry or by force. Repossessed houses always tend to have that feeling. This is mostly thanks to the fact that mortgage companies, who just so happen to be financiers and not home sellers, farm out the selling process to estate agents who are experts in this field.
But then the presiding mortgage companies go right ahead and tie the estate agent’s hands behind their backs, whether it is to save on staging costs or just because financiers are a difficult lot, no one knows. The end result is a shoddily done staging job that leaves signs of repossession for those who know where to look.
Be friendly with estate agents
Most repossessed houses go through an estate agent before they get to the auction house. If you are friendly with a few well-placed estate agents, they just might be inclined to share this ‘insider information’ with you. This is a long shot though.
Look at the adverting and wording
You can also keep an eye out on the local papers. Be sure to look at wordings such as ‘public notice’. This is a clear sign that the advertising estate agent is calling for bids on the house. This is an auctioning tactic that is a dead giveaway. Because mortgage companies are obligated to let the repossessed house go for the best possible price, they will continue to invite bids even once an offer has been made. This can be infuriating for buyers, but a good indicator of repossessed properties for sale.
The trick is knowing what to look for and being in constant contact with the right people. Other than that, the other option is to go for auctions and try your luck with the bidding process.