What Happens to Properties After Repossession?
Once a house has been repossessed the mortgage lender has the legal authority to sell the property for the best price that can reasonably be obtained. This starts with an estate agent, although the home will more than likely end up at public auction where the value will be substantially less than on the open market, normally around 70-75% of the market value at the time. The lender has an FSA duty of care obligation to secure the best price but it has been widely reported that after repossession Banks are keen to secure a sale on the day than hold out for a good price. However, In order to get the best possible price for the property and minimise additional costs and charges, former borrowers need to ensure it is left in the best condition and any necessary repairs are carried out.
To help alleviate any losses after repossession, borrowers should:
- Ensure the property has been cleaned inside and out
- Ensure that all rubbish has been removed from all parts of the house (rooms, garage(s), loft space, garden, etc)
- Leave the garden in a neat and tidy state
- Make sure a ‘For Sale’ sign has been erected
- Take photographs of the condition of the property, preferably with a date stamp from the camera, upon leaving the house to provide witness to the condition at that time
- Ask the lenders if they are supervising and ensuring that the estate agents are marketing the property in the same way as other properties for sale, OR
- Visit the estate agents office to check the property is in the window or at least displayed inside
- You MUST NOT under any circumstances wilfully damage the property or knowingly leave it un-secure as this will only cost you after the event. Once you have been evicted you must not re-enter the property illegally, this is classed as trespassing.
- Any shortfall in money that is still outstanding or charges will be pursued by the lender -They are legally entitled to chase the debt.
Hand Back Agreements
There are occasions where even AFTER eviction we can secure the hand back of the property, this is very complex and based on your bespoke circumstances.
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