Over recent years the substantial growth in UK property prices has outstripped the income generated by people in their mid/late twenties. For single people, finding a deposit is certainly difficult enough, and with the need for a substantial mortgage, repayments are not within their income realm.

Will this phenomenon continue? Forecasters are concluding that although there may well be a period of stagnation, or even a reduction over the next 10 years, the UK property market will continue to stretch away from earned income. As there is a long standing tradition for UK youngsters to fly the family nest much earlier than in other European countries, the UK alternative is for youngsters to rent a property.

Whilst renting property does provide an element of freedom – and for many, helps avoid early commitment and responsibility – rent paid out is effectively disposed of with no real tangible return. Parents of course consider it an absolute waste. Coming out of University with a student debt is a millstone and contributes to youngsters’ inability to make their first home purchase.

With more disposable income at their finger tips than all previous generations, this does present the risk that the current generation might squander their income and dispose of it – without the benefit of securing an asset or attain some long term financial security.

So, other than rent a property, what alternatives do those not fortunate enough to be able to make their first property purchase have? Well, why not buy in Spain? Either as a solo consideration or bolstered by sharing with a partner or sibling, the potential is obvious.

Is this a crazy notion or a viable option? Other than the obvious attractions of the climate, the Spanish economy is buoyant and the property market has seen healthy growth over many years, and is anticipated to continue doing so. Entry-level property is much lower than in the UK and first time buyers can make a purchase with a mortgage as support and generate income through property rental.

Buying a Spanish home in the well regarded Costa Calida area offers a good example of what can be achieved. For a little over 100,000 Euros, one bedroom Spanish properties can be secured in a coastal area, while a good quality two bedroom Spanish apartment can be purchased for a small additional cost. With regular all year round flights to and from many UK airports into the heart of the Costa, a long weekend away or a revitalising short break is an added attraction.

For those with an interest in diving, fishing, golf, surfing, relaxing on the beach or walking in the mountains, owning a Spanish apartment has many advantages over its UK counterpart. Add into the equation lower living costs, no heating costs and lower community charges; plus the ability to take annual holidays there, and the facility to easily rent the apartment to friends and work colleagues all makes it a significant viable option.

For those switched-on youngsters considering buying a property in Spain, choosing a knowledgeable and reliable Spanish property agent can make the purchasing process in Spain a straightforward matter. And in today’s world dropping into casual conversation being an owner of a Spanish property is the ultimate in ‘cool’.

Andrew Regan is an online, freelance journalist.



Repossession

Property prices in the UK have evened out in the past few months. Contrary to what others say, the decline is not necessarily an unfortunate event since prices have risen gradually for a number of years now and a correction was foreseeable at some point. For some in the industry, a slowdown in the property market may not seem like a good time to buy your next investment property. However it presents opportunities for you as a property investor to find cheap investment property.

If you’re investing with a long-term approach, which you should be if you’re earnest about making money from property, then the current environment is a good time for you to snap up bargains especially if you have ready cash to invest. The best thing about a slowdown is that the market is favouring buyers. This means that you can get even better deals for your next property purchase. With the current climate bringing about numerous below market value properties, finding cheap investment property has become less challenging.

Property investors know that buying BMV properties is what successful property investing is all about. Making profits from the day of purchase itself is a task that many have found achievable and will continue to do so. For those on the lookout, there are some simple ways you can acquire cheap investment properties.

Repossessions

Purchasing repossessed homes is an excellent way of obtaining bargain prices because these properties are often bought for a fraction of their actual market prices. Repossessed properties may not always be advertised voluntarily but lenders are often willing to answer questions because of their need to sell the property and regain their capital investment – your best bet is to speak to local agents and check out all the local and major property auction houses that cover your area. But before making the decision, make sure to check the property first to avoid problems.

Property auctions

You can also find cheap investment property at auctions where 90% of cheap properties, according to Sunday Times, go under the hammer. Buying properties at auctions can save you up to 40% as long as you know what to do. Prior to attending an auction, your finances must be in place so you can go ahead with the completion of the purchase in the timescale required.

Typically when the hammer goes down on your bid, you’ll need to put down 10% of the purchase price and pay the balance within 28 days. Before making a bid, be sure to conduct relevant research, make sure that the property is in a good location, have a survey done on the property, and view it prior to auction day. To know about upcoming auctions, contact local auctioneers or sign up for their catalogues.

Just because prices are going downhill doesn’t mean all doom and gloom. Overall the decline presents a good opportunity for you to negotiate good prices at below true market value, bag a bargain and increase your chances of earning profits once the market improves.



Real Estate Professionals

If you are facing the prospect of having your home repossessed, you may think there is no way to stop the process. However, there are options to consider that can help to stop repossession of you home.

There may be no more painful an experience in our society than home repossession. Having your family home taken away from you and sold because of a failure to keep up with mortgage payments is an unpleasant and demeaning experience.

As well as the stress and inconvenience of the act itself, there are also long-term personal and financial effects that can take many years to rectify. While it may seem like there is no way to stop repossession once a possession order has been made, there are options available.

Firstly, it is important to remember that lenders do not actually want to repossess properties. It is an expensive and drawn out process. Lenders are in the business of lending money, not property repossessions, and they are usually receptive to any alternative solutions that can be reasonably offered by the borrower.

Therefore, your first act in attempting to stop repossession is to contact your mortgage lender and try to come to an agreement for paying off your debts while being allowed to keep your home.

A second solution to stop repossession of your home is to refinance your mortgage and any other debts you may have. Many finance companies specialise in refinancing loans for applicants whose properties are at risk.

Another alternative, which is proving popular in modern times, is to sell your property for cash to any number of companies that specialise in solutions for stopping repossession.

The sale proceeds can be used to clear up mortgage arrears and pay off the balance of the mortgage. Such a solution can ensure that the potential repossession victim is not made homeless and will have every opportunity to make a fresh start.

Such a solution should also help to ensure that their personal credit rating is not plundered. This should help ensure that the recovery process is as quick and painless as possible.

It is therefore possible to stop repossession of your home through several different methods. The key to success is to act fast and do all you can to help salvage the situation.



Quick House Sale

The property market in South Africa has already started to experience great falls in house prices, many people are unfortunately being hit by this and many more stand the risk of losing their homes. Despite the tough times we are currently facing, solutions to these problems are already being offered to home owners in South Africa by companies who are able to purchase houses for cash and allow the home owner to remain in the property after the sale. This is known as a ‘Sell And Rent Back’ scheme.

‘Sell And Rent Back’ is the most utilized service which aids in preventing repossession and eviction when as a home owner you are not able to meet the mortgage repayments on a monthly basis. The great part about these schemes is that you will be allowed to stay on your home and not have to worry with being kicked out of the property out of the sale. You can simply carry on with your life as it was before and rid those sleepless nights.

Essentially this now means that the original owner (who is now renting the property back from the company), no longer will be responsible for paying rates and taxes as this is now the responsibility of the new owner. This is a great benefit as it helps in reducing the previous home owners extra outgoings which is where the problem started in the first place. The less outgoings for the home owner, the better. Another great thing that these repossession services offer is a buy-back option. This is where the repossession service gives the home the owners the option to buy the property back at a later date if their financial situation proves to be healthy enough to do so. Ideally the home owner would rent the property back from the repossession service, save money for a deposit while living in the property, and then buy the property back say 5 yrs down the line when market conditions have improved, as well as the home owners financial situation being in a better state.

In order to sign up to a deal like this, the home owner simply needs to source one of these companies that has the ability to buy houses for cash. These repossession services don’t normally charge anything for their service so its great for the home owner as they don’t need any upfront cash in order to enter into an agreement like this. The home owner will also be under no obligation what so ever which takes the pressure off the home owner completely. These companies are able to prevent repossession days and even hours before the actual repossession of the property. They really do provide a valuable and life changing service which is well worth looking into.



Passive Income

If you are looking for quick cash, you have the liberty to sell your home without having to leave it. This is possible through a sell and rent back strategy. You will be able to find this kind of arrangement through Looking4QuickhouseSale. This is an organization which provides fast cash for a condition property. If you are in dire need of money, you can choose to sell your home. If you do not have another place to live in, you can still reside within your house. By renting it, you won’t have to look for another rental unit. What is more, you will be able to bypass the expensive rents of apartment units.

When you choose to sell rent back, you are guaranteed satisfaction. This is due to the fact that you are selling your property to reliable investors. This quick cash strategy can provide you with various advantages. For one, the sale of your home will not go through an estate agent. This implies that you do not have to allot a budget for agent fees. Another advantage to this strategy is the chance to prevent home repossession. This is usually the case when you put up your house or property as collateral to secure your loan. On the other hand, you can also avoid foreclosure. The process of sell and rent back is not that complicated. You only need to apply online and the offers for your home will keep on coming in.

There are already plenty of residence owners who prefer to sell and rent back their homes. This is due to their belief that renting a house is better than actually keeping it. If they want to move out, they won’t have to deal with a lot of things before they can leave. What is more, paying for rent each month is relatively cheaper than settling monthly mortgage payments. Furthermore, renting will keep you from being too obligated with the repairs and maintenance of the house or the property. Since you are not the owner of the home anymore, its damages are not your responsibility. But you have to remember though, that you still need to tend to the property.

If you are a homeowner who is worried about the declining prices of properties, you might want to consider the strategy of sell rent back. When you decide to sell your home, you will be able to lock in the profits of your property’s recent values. Most of your profit that you have earned will not go to estate agents since you are assisted by an investor. You are selling your house because you are looking for quick cash; this implies that you won’t have to negotiate with an estate agent to look for possible buyers for you. You will be directly negotiating with an investor, allowing you to gain the maximum amount of your property.

If you want to avoid a tight financial situation, the best thing that you can do is to sell and rent back your home. This way, you won’t have to put your family in a position where living is quite difficult.



Rent Back Fast

Once a possession order has been issued for your home you may think there is no way of stopping the repossession process. This is not true. There are several ways you can stop your home from being repossessed and a few things you can do to help ensure you have the best chance of accomplishing this formidable task.

Take Care of Your Property

One of the most important things you can do to help stop your home from being repossessed is to take good care of your property. This is particularly relevant if you are trying to sell your home quickly.

One of the worst things you can do if you are trying to stop repossession is to destroy the interior of the house. Many people strip their house clean of valuable items in order to ensure that the lender receives as little of their personal belongings as necessary if the possession goes ahead.

While this may prove cathartic, it will not stop the repossession of your home. In fact, it can have the opposite effect as a property devoid of heating, carpets, kitchen appliances etc will be worth less when it is being sold.

Considering the proceeds of the sale may be used to pay off the accumulated arrears and remaining balance of your mortgage, you should do all you can to ensure that the lender achieves the highest price possible when they sell your property.

Be Honest with the Lender

Another important thing to do when trying to stop repossession of your home is to be honest with the lender. If you are completely broke then you should tell them so.

It will cost the lender time and money to pursue you for your outstanding debts so they may not be inclined to continue chasing you if you make them aware that there is nothing to chase.

This does not mean that you will be released from the debts you owe, but it can help to relieve the pressure of constantly being hounded for payments that you cannot afford to make. By being honest about your situation you can buy yourself the precious time needed to concentrate on finding a permanent solution to stopping your home from being repossessed.

Check Your Credit File

Another important step in the process required to successfully stop repossession of your home is to check your credit file. Lenders will use this file as a tool to help determine whether you have the means to pay them back the money they are owed.

It is important to check your credit file regularly regardless of whether or not you are facing repossession. By doing this you can discover whether there have been any unauthorised checks on your file from credit issuing companies.

If you have received a shortfall letter from a lender you should check your credit file to discover whether they have performed an unauthorised search. Legal issues may arise from such an act that could benefit you. It is, of course, necessary to consult with a repossession solicitor to determine whether this has any bearing in your particular case. Every individual in the UK has a right to privacy and it is possible that an unauthorised credit search may breach this right.

Sell or Remortgage

The above points are intended to provide some useful information that can help stop the repossession process if used in combination with more powerful techniques such as refinancing your debts or selling your home quickly.

These are probably the two most reliable methods for stopping home repossession. There are various companies who specialise in these techniques who offer their services throughout the country. If you are facing home repossession you should contact several of these businesses to help you decide which technique you would prefer to use.

Whichever method you choose, remember to keep your property in good repair, be open and honest with your lender, check your credit file, and take action as soon as possible.



Quick Property Sale

While speaking to people at various events or network opportunities, every so often some one mentions about the increasing number of repossession, thanks to interest rates that have been creeping up slowly in the past year or so.

Recently some one mentioned, “do not why people let themselves into trouble”, he said,”I would just hand over the keys to the bank manager and save my credit history rather than going through repossession hell.”

Nice idea, only that this does not work in UK.

Many people I have spoken to often speak about the foreclosures and ‘how to buy these properties and also help people in trouble.’Unfortunately these people have been regarding far too many property books published for American audience. Foreclosure is a term used in the US. Law works differently in UK, and it refers to repossessions.

Same thing? Hardly!

Lets us talk about foreclosures versus repossessions first.

Myth 1: Foreclosures versus Repossessions

US housing lenders are allowed to apply to the court (and granted permission) to seize the house back, sell it and keep the whole proceeds. Normally court allows repossession but increasingly they are allowing foreclosures. This means that investors can buy the house from the company cheap and make a profit on by reselling it at full market price.

However in UK, companies are not allowed to seize the house. Courts allow them only to repossess the house to be sold at the fair market value, pay the owed amount (and expenses) from the proceeds and send the balance to the borrower.

The Building Societies Act 1997 directs companies to “take reasonable precautions to obtain the true market value of the mortgaged property.”

The true value of any property is often subjective – and depends on the opinion of a purchaser. So how can a mortgage company determine its true market value?

Auction is a route that many companies take.

However the mortgage company does not has to sell the property via auction to obtain the true market value. Courts generally accept this method as a determinant of fair value, but as long as a company can demonstrate, if questioned, that other methods were used, it is allowed.

Some companies sell the property via local estate agents without disclosing that he property is repossessed. By the way of like for like comparison, they can demonstrate that fair value was achieved.

Myth 2: Hand Over The Keys Myth

Many people believe that if they are struggling to keep up with paying the mortgage then handing over the keys to their bank manager will clear them of any further obligations of making payments – because they do not own the house, right?

Sadly this is far from the truth.

Mortgage company lends you the money (cash) and requires you to pay back the whole amount and interest in cash. If the company has to sell the house on your behalf then you are still liable for any interests incurred till all the dues are cleared.

Myth 3: Property repossession allows you to make a fresh start.

Only as long as all debts are cleared from the proceeds of your property!

If the proceeds from your property only pay back a part of the loan to your mortgage company then you are still liable to pay back the outstanding amount. These situations can happen if the property prices have crashed below the borrowing levels.

So if you are facing repossession threat then it is best to speak to some one competent about your situation. One advice is: do not ignore correspondence from your mortgage company. Second, get neutral advice as soon as you can. You do not always have to pay for the advice. Many free advice resources are listed on this link.

Remember,if property is sold via your lender (after repossession) then you not only become liable for further charges (e.g. bailiff etc), this also gets recorded against your credit score for future reference.

Many people prefer to sell the property to an investor who can buy the property fast. These investors can be located via doing a search on Internet, searching your local papers or speaking to those in the know.



Rent Back

The volatile state of the mortgage market has led to many unexpected problems for homeowners. One problem that often arises is confusion when a homeowner’s mortgage is sold. Although transfers are common, there are scams related to mortgage transfers that can catch even the most astute home owner off guard. So, what do you need to know if your home mortgage is transferred? Fortunately, the homeowner has many rights spelled out by the federal government that will protect them from problems when a mortgage changes hands. Knowing these rights will help put your mind at ease when you learn that the company that services your mortgage is selling it.

It’s not personal

Your loan is one part of a huge block of loans your institution is selling. They do this to make money, not because there is anything wrong with your loan or your credit worthiness. In fact, some mortgage lenders sell 80 to 90% of the loans they originate; this is so they have enough capital to continue to make new loans in the community. You may even receive a disclosure of this intent at the loan’s closing, although many people miss this when reading all the fine print.

Make sure that the mortgage was actually transferred



A scam that has been increasing in popularity occurs when a company sends a letter to a home owner, stating that they have acquired the homeowner’s mortgage. In fact, this never actually occurred. The unsuspecting homeowner dutifully makes his mortgage payment to the new company, never realizing that something is wrong until he receives a delinquent payment notice from the original lender. By then, there is little hope of recovering the missing money. The best defense against this scam is a good offense. If your lending company sells your mortgage, they are required to send you a written notification of the fact. The company that acquires your mortgage is also required to send you written notification. They must also provide you with the name of someone you can speak with over the telephone or in person to answer any questions that you may have. Without a letter from your current lender and the new lender, continue to send your mortgage payments to the original lender.

Know your rights

There is a law in place that gives you a grace period during the transition when your loan changes hands. This means that if you mail your payment to your original lender, when you should have made the payment to the new lender, or you misunderstood the effective date of the transfer and mailed your check to the new lender, not your original lender, you will not be penalized. There is a 60 day grace period on payments during the transfer time. Payments that are late during this time are not assessed a late fee and will not be reported on your credit record.

Your loan terms cannot change



Regardless of what has happened between the time that you originally qualified for your loan and the time that it is sold, the terms of your loan cannot change. The interest rate must remain the same, and other terms and conditions remain in place. The new lending institution has no legal authority to change any of the terms that were part of your original agreement. Also, the deed of trust cannot be changed. Like the original terms of the mortgage, the deed of trust cannot be changed.

Know that there is a complaint resolution process

If you are experiencing problems during the transition period or after the transfer is complete, the mortgage company is required to have in place a complaint resolution process for the customer to use. Explain your problem in writing, and send the written explanation to the company. It is important not to include this complaint with your payment, but as a separate piece of correspondence. Most mortgage servicers provide a “correspondence” or “inquiries” address somewhere in your coupon book or on your monthly statements. If you are not sure where to mail it, try calling for the correct address to avoid any unnecessary delay in getting your dispute resolved.

Overall, there is no reason to fear a change in your mortgage servicing company. Transfers are part of everyday business for the mortgage company, and it is how they make some of their money. While there may be some confusion during the transition period, by understanding your rights, you can help to ease any difficulties. Once the transition period is complete, you probably will not notice any difference in your service other than the name you write on the checks. If you have any questions during the transfer period, speak with the lender that originally held your mortgage or the new company until you receive the answers you are looking for.



Repossession

There are many situations when lack of the necessary cash stands in the way of your plans. Whatever those plans may be, quick house sale is often the best solution to your problem. Apparently, selling your home quickly for cash would take a miracle. In reality, the situation is a lot different.

You probably already know what selling your home in the traditional way means. Selling your home through a real estate agency may be a good option, but it certainly isn’t your best one when you need a quick house sale. Involving third parties in the process of selling your home equals more time, more expenses, and a lot more reasons for things not to go as planned. On the other hand, leaving all third parties out of the house sale process is more advantageous in terms of expenses, yet very time-ineffective. And in both situations, you always run the risk of not agreeing over the price and being forced to start the whole process all over again. You buyer may change his mind at the last minute, leaving you with no solutions. Furthermore, if you choose to use the services of a real estate agency, you must be aware of the fact that the chain of individuals who are involved in the sale process can collapse at any time. In addition, selling your home takes time, and more often than not time is something you do not have.

Fortunately, all these unpleasant situations can be avoided. The quick house sale process can be completed to your advantage. This means that you can get the amount of cash you need in a timely fashion, without having to wait for several months. Until recently, when it came to house sale, homeowners were presented with two options, namely that of selling their homes with the help of real estate agents or looking for potential buyers themselves. Recently, a far better option has been added to this list. You can now sell your home directly to investors who specialize in buying homes quickly and can offer you the amount of cash you need. And when we are talking about property buyer networks that have a property asset base worth tens of millions, you can imagine that selling your home quickly for cash is something that can be easily achieved. Selling your home no longer has to be that complex and time-consuming process. All you have to do is contact such property buyers via the Internet. Once you have provided some information about yourself, your situation and your property, you will be made an offer within forty-eight hours and the quick sale process can be completed in less than five weeks! No hassles, no potential buyers coming to your house and intruding your privacy, no chances of buyers changing their minds at the last moment, and so forth.

If your reasons for wanting a quick house sale include divorce, separation, immigration, financial difficulty, repossession, or any other situation in which you need quick cash but you don’t want to leave your home just yet, you can always opt for the sell and rent back scheme. This too is available from the same property buyers who are willing and able to buy your home quickly for cash.

For more resources about Quick house sale or even about selling your home please review this webpage http://www.24-7-cash4homes.co.uk



Rent Back

Original article

After the last article on Costa del Sol bank repossessions I received an enquiry about how bank repossessions work in Spain compared to the UK as he was having trouble with his repayments. So please find below the stages that you expect should you (god forbid) have to deal with in the case of non-payments.

Arrears

The first stage would be arrears, where the borrower is unable to meet payments. The mortgage provider will be in contact asking for an explanation and start charging you a variety of penalties. The lender may also attempt to renegotiate the existing agreement.

IMPORTANT NOTE: If the borrower is are having difficulty meeting repayments, contact you mortgage lender prior to arrears as they may be willing to discuss renegotiating you agreement, off-setting payments, etc… as it is not in the banks interest to repossess your property.

90 days later

90 days after the first arrear, the debt collection department will attempt to recover the defaulted debt.

Up to 30 days after default

The borrower will receive a certified document from the lender informing you of repossession proceedings through the courts.

Further 10 days later

Legal action will be started against the borrower for outstanding repayments and to auction the property to the public to reclaim all monies owed.

Up to 16 months later after legal action

The property is put on auction to be bid upon. If there is no purchaser, the property becomes the possession of the lender for 50% of the properties value.

If lender becomes the new owner, there may be additional monies owed to the lender as in most cases the mortgage will be higher than 50% of the value of the property. Plus the additional penalties for arrears, court costs, etc… there may also be an attempt to reclaim owed monies from any guarantor on the mortgage as well.

The land registry information is then updated to confirm the new owner.

6 months later.

Eviction notice. Court officers along with police and a locksmith will evict the borrower. Although if it is the borrower’s main residence and they have children, it is far next to impossible to have the borrower evicted. The debt would remain though.

Hope this gives you a better idea of how bank repossessions work in Spain. Please note I have kept the date relatively general as they are not clear cut

Regards

Andrew Belles

Costa del Sol property



Real Estate Professionals