Repossessions have fallen which we are sure everyone would agree is a good thing. However, repossession sales do still present an opportunity for first time buyers and buy to let investors. We look at the current situation.
New mortgage lending data from the Financial Services Authority show repossessions falling to 9,145 in the third quarter of 2010.
The total represents an 8% decline on the previous three-month period and is at its lowest since the end of 2007.
In addition, the number of new arrears cases fell to 36,600 in Q3, having declined in each of the last seven quarters.
The total number of accounts in arrears has also continued to fall each quarter over the past year, decreasing by 2% in Q3 to 346,000.
The proportion of loans to borrowers with an impaired credit history increased slightly in the last quarter, to 0.44%, while the total value of outstanding loans stood at £1,220 billion, an increase of less than 1% on Q2.
The prediction for the number of repossessions next year is in the region of 35000 which is well down on the predictions for 2010. However there are still properties which must be sold. At Ryder & Dutton we deal with a substantial number of the repossession sales in our area. These must be dealt with in a specific way which makes sure that the interests of the defaulting borrower are properly looked after with particular regard to the principles of ‘Treating Customers Fairly’.
All properties must be fully exposed to the market, the lenders/panel managers must be able to show they have chosen the most appropriate agent for the job, joint agencies for repossession sales are now more common again to show that best effors have been made to achieve the highest possible price in a reasonable timescale.
Often Public Notices must be placed advertising the price agreed to make sure there is no-one out there who might have been paid more. Some buyers now just wait for the public notices before making any move.
Buyers often think that they ‘are not been treated fairly’ due to the processes involved and it is important that there expectations are carefully managed and that they understand exactly how it all works.
We are quite happy to discuss the processes involved with any potential buyers so they know exactly what to expect.
We produce a weekly list of our ‘Must be Sold’ properties to which anyone may subscribe. This list contains many of the repossession sales( but is not exclusive to repossessions).
To ensure you receive this list call us on 0161 925 3255 and register with us.
The list will then be sent automatically to your e-mail address. If you receive our regular newsletter and have not excluded the ‘investors corner’ section from your preferences you will probably be getting the list which is sent to over 20000 subscribers weekly.