Buying a repossession - tips

My experience recently highlights several aspects of being successful in buying a repossession.

Firstly, a landlord has to act quickly. Therefore, cash is king. Repossessions are increasingly being handled by specialist asset management companies who charge a fee to the lender to manage they sale. The lender is therefore keen to get rid of their property ASAP in order to keep charges to these companies as low as possible.

Lenders are under a legal obligation to obtain the most for any of the repossession they sell. This means that a landlord attempting to buy a repossession is always exposed to a potential counter bid. The secret is to get the sale to exchange to ensure that no other potential purchaser can secure the property.

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