Can We Find a Repossessed Auction Property in the Norwich, United Kingdom?

There are benefits to buying a repossessed auction property, not least the fact that they are often 20-30% cheaper than properties sold via local estate agents.  The reason is because the aim of the lender that has repossessed, or ‘taken back’ the property, is to recover the debt.  That said, they do have an obligation to get the best price possible for all parties.  The one thing to remember when you want to buy a repossessed auction property is that there are advantages and disadvantages.

What is a repossessed property?

A repossessed property is one that has been taken back by the lender, such as a bank or building society, usually due to a sustained period of missed monthly repayments by the mortgage holder.  If there are substantial arrears and there is no repayment plan in place, the mortgage lender will apply to the court to repossess the property, often as a last resort.

Properties that have been repossessed are being sold via an auction more regularly, often at a much lower price.  The types of property repossessed can be just about anything, from small flats to big mansions, old properties to new builds.  Whilst many repossessions are from private mortgage holders, sometimes developers and landlords of buy-to-let properties also get into trouble and need to sell quickly, which is one advantage of selling a repossessed property at auction.  One thing to note is more often than not, repossessed properties usually need updating and/or refurbishing.  

Type of repossessed property sales

There are generally two types of repossessed properties; those that have already been taken back by the lender and those that are being sold by the property owners at an auction.  Sometimes private property sales are by owners that have fallen behind with mortgage repayments but have been given time by the court, or the lender, to sell the property before it is repossessed.  Alternatively, they are new build developers or landlords of buy-to-let properties that need to sell properties quickly.

In general, a repossessed property will be sold via a local estate agent by the lender for a short period to try and get as high a price as possible.   However, if the property hasn’t sold within that period of time, it will go to auction.  Ultimately, the lender wants to get back their debt although they do have a responsibility to get the best price possible.  

The attraction of buying a repossessed auction property is usually the fact that the price can be as much as 20-30% below market value.  Most properties sold at auction need updating and sometimes substantial refurbishment, but if you are prepared to put time and money into the property, they are often a good buy.

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