Sadly due to the current economic climate, property repossessions are predicted to rise as high as 45,000. This means that more and more purchasers will face the prospect of buying a repossessed property. There are some issues that to be aware of if you are considering buying a repossessed property.
1. Buying a repossessed property does not necessarily mean you will get a bargain. The bank or building society that has repossessed have a legal duty to realise the best price for the property wherever possible.
You are therefore likely to find that while repossessed properties are competitively priced, the bank will not be able to accept a drastically reduced offer without a very sound financial reason.
2. One of the issues that you will always encounter with a repossession is the fact that seller is not the occupant of the property. So the bank will be unable to give you any detailed information about the house itself nor about the street and neighbourhood.
You therefore need to ensure that you do as much of your own research as possible. This includes visiting the property on more than one occasion, trying to speak to the neighbours and looking at property websites that describe the local area.
3. A further problem is the fact that the bank will not answer any legal enquiries about the property. This includes issues about access to the property, boundary problems, neighbour disputes and other legal problems.
You will therefore buy without any knowledge of these potential problems. The only solution is to buy a policy of insurance that would compensate you should any such issues occur. This will, however, add to the expense of your purchase.
4. Timescale is the next issue, as the bank will usually insist that exchange of contracts and completion take place within a very short, set period of time.
To avoid delays you should ensure that you have your finances in place before you make an offer, and have discussed matters with your solicitor as early as possible. This will put you in a better position to comply with the timescales, and lessen the chance of the deal falling through should problems arise.
5. The final issue to be aware of is the financial status of the previous owner. As the property has been repossessed the former owner may have other debts or even county court judgements. So credit agencies or bailiffs may still contact the property. The important thing is to ensure you register yourself as the new owner as soon as possible and return all incorrectly addressed to the sender, unopened.
The property shouldn't have an adverse impact on your credit, as your address should not be taken into account where credit is concerned. If you do find a problem, obtain a copy of your credit report and report any anomalies to the credit rating agency who will help you to resolve the problem.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/legal.php/398147
Article Added on Sunday, December 16, 2012
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