Repossed Properties

Repossed properties are great deals for those who are dabbling in real estate to snap up a bargain. The numbers of repossessed units are increasing. The nation as a whole is alarmed but nevertheless it is affording an unforeseen opportunity to some to make hay for their sun is shining.

To repossess is to take over a second time. It is usually the bankers and lenders who repossess but it is a contradiction to say that they are repossessing it when they never possessed it or lived in it in the first case. But why then the use of this term? The banker or the lender advances a loan to a borrower for the purchase of a piece of property. Now this property is kept by the lender as collateral or security until the loan is repaid. Having got the loan the borrower buys the house but technically the deed is deposited with the lender. Hence it may be said that the lender is the possessor of the house. When the borrower fails to meet his mortgage commitments over a certain period of time then lender auctions the house to realize dues. But if the auction fails to find a satisfactory bidder then the bank or the lender directly takes over the house – repossesses it this time in the true sense of the term. The ex-owner has to vacate it. Now the bank tries to directly sell it. It is known now as REO or real estate owned.

With the huge slump in the real estate market many will be tempted to clinch a bargain. These potential buyers are of two kinds – the ones planning to set up home for the first time and speculators who nurse hopes that real estate prices are sure to rise allowing a margin of profit. For neophytes the advice is that the bargain is not as easy as it seems. So it is better to take the help of local real estate agent as well as a lawyer. There are community group counselors who will help the person wanting to light home fires in a new house with tips about not repeating the mistake of the past borrowers who fell into the foreclosure trap.

Repossed properties can be inspected. This is not so the case with auctioned units that have to be taken on an as-is-where-is basis. It will be prudent to inspect the property with a building contractor who will have eyes for hidden expenses. It has kept in mind that the Repossed properties are not always in tiptop condition. Often cosmetic changes have been made to attract the novice. So one needs the help of an expert in the field otherwise renovation expenses might spiral to unexpected heights.

The greatest plus point about repossed properties is that the title is clear and clean and nothing has to be paid towards pending dues. These are owner owned. It is a cause for relief but even then legal advice and guidance should never be avoided for saving a few coins by way of fees. For details about Repossed properties the best site to visit is US Repos.