I learnt something today.  A lender can obtain a home without a court order.  Can you believe it!

A repossession order is simply granting the lender vacant possession so they can sell the property.  However they can get a property put in to the lender?s name without the need of a court order.

So lenders who have given buy to let mortgages can take a property off a landlord and simply sell it at auction as they do not require possession.  That is amazing!

So if you have aggressive lenders they can simply instruct their solicitor to contact the Land Registry to put the property in their name if you are one day late with the mortgage payment.

These sort of ?take overs? I presume go unreported as they are not repossessions.  They will keep the auction houses full and also some of the estate agents.  I reckon they will take over properties that are at 60% LTV so they can sell, get their money back and re-lend.

So the likelihood of bargains just gets better.  Novice landlords will feel the wrath of lenders coming out of the market via the way of take overs and professional landlords will buy at 60% of value with buy to let friendly lenders.  Since we know 85% LTV lenders it will mean heavy cashbacks for those who acquire these properties.

PERFECT! 

Ajay

PS  Just spoken to a sourcer who sources for high net worth clients and he is getting up to 55% discounts of todays RICS survey from distressesd developers if the investor buys the whole plot (usually 50+ units).  I will be approaching him for my own personal circumstances and will be offering this service for other high net worth clients who read this newsletter.  Watch this space!

Posted on: 24th Nov 2008