Buying at Auction: The Mortgage Provider Online Guide
The most obvious properties that spring to mind are ones which lenders have repossessed. However, perfectly ordinary property and redevelopments are often seen at auction too!Unfortunately, these auctions are not always well publicised. The best place to look for property for sale by auction is on the Internet, or via local and national newspapers. Remember the process takes roughly three to four weeks from advertisement to auction day, so it is important to get a catalogue and investigate your property well in advance.
Top TipsGet a catalogueDo your researchHave a realistic budgetMake sure the finance is in placeGet a decision in principleRetentionKnow your maximum bidGet the catalogue.
Contact the auction house several weeks in advance and ask for a catalogue. Those in the trade get sent these automatically, so a little more work is required on the private buyer's behalf.
Do your research!This is vitally important as the tight timescales mean that it is tempting to cut corners or take the catalogues' description as gospel. Cut corners at this stage could be expensive if structural defects are established after the sale. View the property, ask the neighbours about it, instruct a surveyor and establish good root of title.
Have a realistic budget.
There will be considerable legal and valuation fees to be paid without any guarantee of getting the property you desire. Whilst this will deter people who are not serious about bidding, it does mean that you must have the ability to match other bids. If you don't win, a bill of over a thousand pounds is likely on a standard residential dwelling.
The finance will have to be in place by auction day.
This means that a deposit of 10% will have to be available on the day, with the remaining 90% payable within 28 days. The 10% will not be refunded if the sale doesn't go through! This means that there's no backing out without a significant financial penalty. Be sure that you want the property.
Get a decision in principleIf you need a mortgage or bridging finance, make sure you have a decision in principal from a mortgage lender. The best way would be to use a broker: ask them whether the illustration they are showing you is a Decision in Principle (DIP). A DIP means that the lender has agreed to lend a certain sum based on certain assumptions and details submitted to them.
RetentionIf the property needs substantial repair, the mortgage lender may place a retention on the mortgage. This means that they may keep a portion of the funds until changes are made to the property. The auction winner must make adequate provision for these extra costs.
Know your maximum bidKnow your maximum bid and don't get carried away. It's easy to get carried away in the atmosphere of an auction room. Ever bought something you regretted on Ebay? Imagine that mistake magnified by thousands!
Source: Free Articles from ArticlesFactory.com
Related Tags: guide, mortgage, auction, online, buying, provider, at, the
An experienced UK mortgage brokerhttp://themortgageprovideronline Your Article Search Directory : Find in Articles
Recent articles in this category:
- The No. 1 Rule For Projecting Confidence - Speak With Authority
One of the most important characteristics a person can project in a business setting - or any situat - After the Autumn Checkout European Debt Crisis and U.S. Brewing Rebound
In the commotion caused by the Fed on interest rates come to an end, the "disastrous" for the euro a - Advantages Of Arcade Game Rentals
There are many different advantages to arcade game rentals. Most people need something to release th - A General Primer on Truck Cargo Nets
In modern highways it is quite rare to see truck cargo nets in action, this is because they are usua - The United States Will Burst More Severe Financial Crisis
Not long ago, suddenly announced that the central bank to raise interest rates, the interest rate hi - Niche Marketing Profits - 3 Easy Steps to Finding a Profitable Niche Market Income in 10 Minutes
Like most beginners I was having a very difficult time trying to find a niche market to earn extra m - The Importance of Hospitality Management Consulting Firms Toronto
Businesses and the managers that help guide any business are in a constant state of improvement and - New Keynesian Theory Label
2010 winner of the Nobel Prize in Economics three theories have been labeled as "New Keynesian" labe - Federal Reserve Pouring Money QE2 Unpredictable Fortune
U.S. economist Milton Friedman proposed a "throw the cash from a helicopter" view, while the practic - Fiscal Consolidation Should no Longer Delay
British Chancellor of the Exchequer George Osborne today announced fiscal consolidation policy, shoc
Most viewed articles in this category:
- Common Financial Problems to Avoid
One must first change their habits and not procrastinate. American Consultants Inc at offers key fi - How a Bad Hire Can Hurt Your Business
What's worse - hiring the wrong person or not hiring anyone at all? Companies can become almost des - Joel Comm Is Dr. Adsense
What is Adsense? If you are new to making money online and net marketing, you may not know what Ads - 5 Steps For A Dynamic Wealth System Online
Recipe: Opportunity + knowledge + Dynamic Wealth System + Your Action = Massive Success!!! Step 1 - How To Stop Foreclosure
Losing your house to a foreclosure can be very scary. There are times when circumstances are ou - How to Always Pitch A Strike
As business owners, we are always working on new ways to convince people to become customers, client - Membrane Diffuser Solutions for Wastewater Treatment Systems
In the aeration basin of a typical wastewater treatment plant there are both organic and inorganic m - Another Year Hating Your Job or Loving Life?
Copyright © 2007 Mary Foley I've come to the conclusion that to be successful - really successf - Dyestuff Industry In India And China
World demand for dyes and organic pigments to touch $10.6 billion in 2008According to a study on dye - Cma-cgm Case : the Series of Lawsuits Continues in Syria, Lebanon, Egypt, France, England and the United States
Damietta company case : The series of lawsuits continues in Syria, Lebanon, Egypt, France, England a