Distressed Property Sales
What Is Distressed Property?
There are many different situations which can cause a property to be classed as a Distressed Property for sale. The most obvious are those people that are struggling with their mortgage payments. With the recent problems in the mortgage market many people are coming to the end of the fixed rate or tracker and being offered nothing but a higher rate mortgage. People who budgeted to their maximum are then stretched to the point in which they can no longer afford their repayments and will maybe default over one or two months. This will then make it next to impossible for them to be offered a lower rate mortgage and therefore they cannot continue to live in the house with the current arrangements. Their present lender will then start court proceedings which unless they can come to an agreement will eventually result in repossession. This process can take a very long time and it’s at this stage where we come in to help and stop the repossession. Other distressed property sales may be down to divorce or death of the owner in which the relatives need a quick sale.
What is Rent Back?
Rent back is where a person or family being repossessed and are given the option to sell and then rent it back. Obviously the property is bought at a discount in order to obtain a quick sale and the option is given to the tenant to purchase the property back in a few years once they have themselves financially secure. Although this is often the last resort for the tenant it means they get to stay in their house, kids can remain at their school and there is no need for up moving away. For the investor it’s a discounted property with a tenant already in place.
Our repossessed properties and distressed properties come and go very quickly because of the nature of the sale and the fact that investors are very keen to buy at this time. If you see something of interest please do contact us as soon as possible as people are looking to sell house quickly which is the reason for the discount.. In the present climate there are many properties coming onto our books which need either cash buyers or at least someone who is in a position to move very quickly and arrange their finance very quickly. Although at the moment UK properties are coming down in value, with the recent investment to the banking system by the UK government we are now seeing mortgage rates come down and we expect there will be some great mortgage products out there soon which will help restore the market. If this is the case then it’s time to buy now! Our repossessed properties and distressed property sales are always being up dated so please check back to see the latest great investment property.
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