Buying a Repossession.

Buying a repossession property is slightly different to a normal sale.

Firstly, there is a big chance that the property is in need of some refurbishment. On viewing you will get an idea of what may need doing. Quite often it will be mainly cosmetic work such as carpets and wall paper but keep in mind that the previous owners were probably evicted over financial reasons and important up keep of the property may have been neglected for some time.

The property will normally be 'sold as seen' which can mean that nothing has been tested within that property such as gas, electric and water fixtures and fittings. Costs could rocket up with a faulty electric meter or gas boiler.

There could also be outstanding credit secured to the property (chattels) which the vendor has no obligation to clear, this could lead to a legal battle depending on the amount. Chattels are quite often written off due to a bankruptcy notice and don't normally cause issues, but its always worth keeping in mind that you don't know what financial situation the previous owner was in.

The condition of the property can also have an effect on your mortgage offer. If the valuation of the property comes back lower than the price you have offered then the mortgage broker can hold back part of the mortgage until necessary repair work has been done. You do then have the right to renegotiate the purchase price but the chances are that you have got the property at the lowest asking price anyway.

With repossession property's you must show the estate agent proof that you have a mortgage offer in place, this can be obtained by your mortgage broker free of charge, and proof of I.D, before an offer can be sent to the seller.

Finally, there is a great bonus to repossessions, the price!! It is a great way to pick up a bargain. If you are prepared to do a property up, then this is the way to go. You will find these property's listed as regular sales on most estate agents sites so they may be hard to spot. Key words like 'in need of updating/refurbishment' are usually clues, a sheet of paper stuck to the front door/window can give the game away and, of course, the low asking price.