More West Australians had their homes repossessed last quarter than during any previous quarter on record.
Figures released by WA’s Supreme Court show that 399 civil property possession applications were launched between January and March of 2009.
399 civil property possession applications were launched between January and March of 2009.
This is the largest number of applications per quarter on public record, with the average over the past decade being only 145 applications per quarter.This trend shows a rise in Foreclosures and Bank repossessions
Pre-foreclosures Foreclosures HUD homes Repossessions Bank repossessions Reo bank homes
“The rise in mortgage repossessions shows that mortgage stress is still a significant issue in WA despite the fall in interest rates,” said Sue Ash, CEO of the Western Australian Council of Social Service.
“Governments must ensure that West Australians experiencing mortgage stress have access to the services they need to avoid repossession or to cope with repossession when it occurs.”
The rate of mortgage repossessions has now risen for four consecutive quarters.
“Falling interest rates have clearly not caused mortgage stress to disappear in WA,” Ms Ash said.
Western Australia’s top welfare organisation says interest rate cuts have done little to ease mortgage stress, with home repossessions on the rise.
Figures from the Supreme Court show nearly 400 repossession applications were lodged between January and March this year.
“Rising unemployment and falling house prices have meant that the rate of repossessions and West Australians in arrears on their mortgage has soared in the last 12 months.”
what is foreclosure ?
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue HOA dues or assessments. more here
Sell homes now
Amy Kilpatrick, principal solicitor at the Law Centre says that the majority of repossessions are associated with non-bank lenders. …
Bank repossession houses are otherwise called repo homes. A home can come for repossession for many reasons, though ailment and unemployment are the primary cause to default on mortgage. This could lead to foreclosing a property. Once the house is repossessed the bank is the new owner of the property. They can auction the home to any buyer. The only aim is to sell the property as soon as possible to release the cash locked in the property. These bank repossession houses are sold below the market value. Many people opt for bank repossession houses as they are attractive buys. Most of the houses are sold below market value and people with limited budget find it a great opportunity to own a house. There are big condos and single family houses too. Based upon the requirement and budget people can choose a property. The only aim of the buyer is to sell the house immediately and therefore the property is sold at ten to thirty percent lesser than the market value.
Do not plunge into buying bank repossession houses just because they cost less. A careful analysis is required before deciding to buy such properties. A thorough examination of the property is necessary before opting to buy bank repossession houses. Some of the houses may cost thousands of dollars on repair work, so the savings are passed on towards renovating the house, so think twice before buying. Banks attach several properties in a day and they are most expensive item repossessed by the banks. These properties are considered to be a great investment option. You need to invest little, but the property will bring more wealth in the future. If you have enough money, then bank repossession houses are a great deal to develop your investment portfolio. Before buying bank repossession houses, it is best to consult experts in the field and work according to their suggestions. Certain terms and conditions require professional help to put it in simple terms. Study the subject thoroughly before deciding on a buy. See to that you do not lose money in the transaction. A little caution can help you benefit from the deal.
The market is currently flooded with bank repossession houses, but selecting the right property is necessary to benefit fully. Instead of seeing the property on paper, it is best to visit the site and analyse the pro and cons of the property. See if the property suits your taste and then invest your money on it. Bank repossession houses are cheap when compared to a normal house buy. Paying real estate commission to get to know more about the property is very minimal when compared to the amount you are going to save on the property. These properties require touch up and the expense of repairs should also be calculated in the property value. Bank repossession houses are the ideal situation to own a property, especially if you have the funds ready for the investment.
3Tips To Buy Cheap Repossessed Houses Through Auctions
1. Know what the game is
Know what you are getting into before you get into it. Before going to the repossessed house auctions, first determine what will happen there and what you need to be doing there. If it will help you, try to attend one repossessed house auction but don’t participate. Just see what happens and get the feel of the procedure.
Observe the people that do the bidding and learn the dynamics of going there. If you can take down some notes so that the next time you go, you know what to expect and what to do.
2. Bring an expert with you
If you know someone who has already gone to one of those repossessed house auctions, bring him or her with you. Ask him or her what happens and let him or her guide you through the whole auction thing. Don’t be afraid to ask questions until you understand the dynamics of the whole thing.
If you know someone who is really an expert on bidding in these kinds of auctions, all the better. Let that person teach you the ropes. You need the training to be able to bid better and get a better deal.
3. Ask other bidders
Not all people out there are sharks that are out to outbid everyone. Look for people who you think you can talk to and then ask questions about auction. Most people will be glad to help a fellow bidder especially when you are upfront about your lack of experience. Be careful though and make sure that you will not be swayed into doing something that you do not like to do.