Has there been a significant increase in the number of properties going to auction since repossessions increased?
Chris says: “It is a fact that there has been an increase in the number of properties at auction and some of these are repossessions. The lenders have a duty of care to the defaulting borrower even after possession. The mortgage account will continue to accrue interest and cost until the property is sold and the transaction completed. There is a risk that if the property is not sold within a reasonable period of time then these costs will escalate and therefore, any shortfall between the sale proceeds and outstanding loan will be far greater. Auctions have proven to continue to be an active market where properties continue to sell and therefore, an ideal market for lenders to place repossessions.” Do repossessed homes offer a good deal, particularly for first time buyers? Chris says: “There are a number of advantages for any buyer attending an auction and these are not exclusive to first-time-buyers. The properties offered by auction will have a full legal pack available in advance of
