Buying a house that has been repossessed can be a quick way to avoid the expense of purchasing a new property. Bank repossessed homes are normally repossessed because the owner has not paid their loan or mortgage. In times of financial stress many people are unable to make their bond and mortgage payments and so repossessions become more common. The reason that they are cheap is that the bank wants quick money in order to pay off the owners’ debts. All South African banks including Standard Bank, FNB, Absa and Nedbank have a different route of selling these homes, but most banks will hold auctions to allow the buying public to purchase these properties.
If you are an investor, then buying a house that has been repossessed can be an excellent way to purchase property that you plan to develop. A number of the houses on sale often require minimal work, because the previous owners were still living in the homes when they became unaffordable. These homes can be in a variety of areas and so you should keep a look out in your local newspaper for lists of auctions. There are normally hundreds of homes up for auction at any one time, and most banks have a list of properties they need to sell. If you are a first time buyer, then buying a foreclosed property can be an exciting way to enter the home-owners market.
Between Standard Bank, FNB, Absa and Nedbank around 700 homes were on the market this year. There are some negative elements to buying repossessed houses, including the lack of guarantee and possible restorations that might be needed. These negatives can be balanced by the positives which are the affordability of repo’s, and the excitement of owning your own house. If you’re in the market then buying a house that has been repossessed can put you a step ahead of the competitors in getting the home of your dreams.
Standard Bank and ABSA Repo Auctions
Standard Bank and ABSA repo auctions are a great place to find deals on not only property but vehicles as well. The majority of repossessed vehicles are sold at auctions such as Burchmores and Aucor throughout South Africa. For those of you who are unsure about exactly how a vehicle is repossessed it is due to the fact that the previous owners defaulted on their monthly instalments due to financial difficulties. As heartbreaking as it is for the previous owners to lose their vehicles, it does present a great opportunity for those of you who are looking to purchase a vehicle at a greatly reduced price.
What is more is that Standard Bank and ABSA repo auctions offer a bargain bin for those of you who are looking to invest in property or to purchase a new home. The same principle applies to repossessing a home as it does to repossessing a vehicle – the previous owner defaulted on their monthly instalments and as a result the banks have been forced to take the property back in to their possession. These properties are also auctioned off in order to make back the money still owing on the property.
Both ABSA and Standard bank have a host of properties and vehicles that are auctioned weekly. This means that if you are looking to purchase either a car or a house for a reasonable price then you should definitely visit one of the weekly auctions. One important thing to note before you purchase anything is that anything that is sold at auction is sold as is and therefore the banks are not responsible for any possible defaults that may arise. For a list of all vehicles and properties on auction, you can visit the banks websites or take a look in your weekly newspapers.