Many properties have repossessed this year. Due to recession, there has been an increase in home repossession. According to a survey, there were nearly 19,000 properties that were repossessed in the first half of 2008. It is not easy to digest who have lost their houses. If you are planning to buy your dream home at a reasonable price, you can look for those repossessed properties which are now available for auction, at a lesser price. If you would have purchased a new home you would have paid 50 percent more but if you buy the same house through auction you will pay half the amount. In the past three years there has been an increase in the percentage of repossessed properties that are auctioned by over 300 per cent. In numbers the repossessed properties that were auctioned were nearly 3,102 in the first half of 2008 from 800 in the first half of 2005.

A survey from the Royal Institute of Chartered Surveyors tells that the properties that were sold easily through auction over the past three years are going through a bad phase due to credit crunch. But there is a plus point with less competition in auction you can bargain for the property at a price you wish to buy. Many bankers and lenders sell repossessed properties on a single day itself because they want to receive their amount and so they don't wait for achieving a higher price. Due to this many properties are sold at a low price which is enabling investors to get some excellent deals. Even newly build flats are being sold at huge discounts. If you buy a property at auction you can save as much as half the value of the property. But remember before you step into the auction room do your homework well.

See to it that you auction the property at a price that you can afford, because if you raise your hand once you have to buy the property. The timescale that is involved in a property auction is much tighter when compared to real estate agent. If you're planning to buy a property through auction see to it that your finances are in place, as there is limited time frame. You have to make 10 percent of the purchase price on the day of auction and the rest within 28 days. So contact a lender in advance who will help you out. Many lenders will not be able to process the mortgage application in such a limited period of time. So it would be better if you take guidance of a good broker. Remember to inspect the property properly before going for a bid. Some auction properties have legal minefields like bad titles of ownership. So try to spot it in advance. On the day of the bid you should have 10 per cent of your maximum bid, solicitor's bid, two forms of identification and auction catalogue. If you don't carry these don't go for a bid.

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What benefit can you actually get from buying a house or property that has already been foreclosed? If you want to acquire a property in order to live in it or use it for investing purposes, you should try looking to foreclosed property auctions.

With foreclosure auctions, you may just be able to save yourself several thousands of dollars on a home for you and your family. Foreclosure auctions are great for finding the home you want, especially if you don't have a lot of money to spend on a new house. Foreclosed properties are priced much lower than properties sold on the regular real estate market.

So where can you find information on foreclosure auctions and where are these foreclosure auctions typically held? Check your local paper. You can also find information on foreclosure auctions on the Internet. There are foreclosure listing services that provide information on where and when foreclosure auctions are going to be held as well as information on the foreclosed properties that are going to be up for auction.

You can find free foreclosure listing auctions online but they are typically not updated regularly. If you want current foreclosure listings, look at subscription based ones. These are regularly updated and you can even have the service send you an alert by e-mail whenever new foreclosed properties are added as well as give you reminders as to when foreclosure auctions are going to be held in your area or cities where you are interested in acquiring foreclosed properties.

Do be aware that things tend to happen quite quickly at foreclosure auctions. The best thing you can do before you attend these auctions is to be prepared. Try to find information on properties that are going up for auction ahead of time. This is where those foreclosure listings will come in handy.

Remember if you are deciding to buy a foreclosed property, the location can affect the value of your investment at a later date. Before going to auction, research the area so as to be fully educated in the type of neighborhood you will be investing or residing in.

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Auction Property or 'Foreclosures' as it's called in America is probably one of the easiest methods to buy cheap 'run down' property for a quick sale - refurbish it then sell it on for a tidy profit.

There are many benefits but also a few pitfalls that should be taken into consideration before buying an auction property.

Below, you will find some tips and strategies that you can use to make your experience more enjoyable and profitable. Never be persuaded to buy an auction property without viewing it first is something any buyer should bear in mind. Doing so could result in throwing good money down the drain.

Go Prepared and Take with you Some Essential Items


A torch is always feasible. You'll probably find that most properties have the electricity supply cut off, so a torch is virtually priority.

A digital camera or camcorder - There's nothing worse when getting back home to discover a certain feature or fault with the property you seen but can't remember how serious it was.

Taking a digital camera or video recorder will enable you to walk through each room scanning every possible corner of the property, inside and out. You then have it recorded to view at your leisure to sort out the good points from the bad enabling you to make an informed decision before you buy.

A notepad is also crucial. Take notes of what you discover.

Viewing the Property Thoroughly

You now have a property in mind and you attend a viewing. Take someone along that knows what to look for if you don't.

Don't be put off by a dirty looking bathroom, missing kitchen cabinets, doors or broken plaster on walls and ceilings. This is minor and can be rectified with minimal cost.

You do, however, need to worry if there are vertical cracks on the exterior faces of the property, as this can be a sign of subsidence! If you do come across these sort of cracks, be sure to seek expert advice in the form of a Structural Engineer. Otherwise, move on.

There are more properties to look at without the headaches. Unless you know what you're doing, stay away from structural problem properties. Ok, you might pick them up for a real bargain, but is it worth the trouble and the sleepless nights? I don't think so.

Take notes as you view each room: how many bedrooms; jot down the dimensions, check the state of the windows (do they open and close), stairs, floorboards, damp, ceilings and walls. Try and have a look in the attic; make sure you can't see daylight coming through, check rafters, signs of deteriorating under-felt, ceiling joists.

Outside the property you'll want to check:

The Roof. Is it sagging in the middle? This could be due to weak rafters exposed to a heavy load of clay tiles etc.

Check the roof tiles. See if any ridge tiles are missing or mortar missing from joints.

Check lead flashings are in a reasonable state, are they lead or been patched over with flash-band? Noticing these discrepancies can tell you that there's been a problem before that may have been rectified or maybe just 'bodged-up' for a quick sale.

Check the rainwater system thoroughly. Is it the original cast-iron type or UPVC? Is it overflowing with moss?

Is the water penetrating the property brickwork? A discoloured brick (green, mossy and slimy residue) means it's been happening for a while and needs attention. This could also be the cause to damp walls in the property itself.

Check the damp course. Level land should be below the damp course level (normally a black layer of thick bitumen-like material 2 or 3 bricks up from the ground). Some older properties do dot have a damp course and if they've had one inserted recently, you'll discover 15-20mm diameter pellet holes (150mm apart) which are plugged off with caps. This tells you that a proper damp course has been fitted.

Check exterior window sills for timber decay. Use a key perhaps to press into the sills and timber framework to check if they are soft. If the wood is rotten you'll find the key presses in like a hot knife through butter. This means you have additional costs in repairing window sillsand maybe even the windows themselves. A costly affair!

Check mortar joints in the walls and chimney stack for decay or missing mortar. Re-pointing a property can easily be rectified but can also prove to be quite costly.

Trees May Look Beautiful but Can Be the 'Root' Of All Evil

What do I mean by this? Well, here's a typical scenario:

While viewing properties for a valued client of mine, he was really keen on a detached house in London. The property was on the market for a while and it was only by doing some valuable research, was I able to determine the reason.

In the front garden stood a lovely oak tree probably about 12-15 metres from the front of the house. The massive roots of this 'king tree' were gradually (over the years) interfering with the foundation of the property causing severe cracks to the walls.

Although only fine cracks at the time, it was seen as a major stumbling block for prospective buyers. After reporting this to my client, he soon realised it was probably best left alone.

Six months later, the house was purchased by a young innocent couple who had to undergo a major underpinning project to the property which has cost them thousands - money which could have been spent wisely elsewhere.

In tree-lined properties, always check the garden areas - paths, drivewaysetc for 'bumps and lumps' as the lovely looking trees could actually turn out to be 'The Root of all evil.'

Excuse the pun!

I don't mean to put anyone off, but by checking these few things and taking notes on what you discover,is going to give you a thorough picture of what you're perhaps about to buy and/or what you can sell it for, should you decide to buy an auction property to refurbish quickly and sell on for a profit.

It will also guarantee that any money you do need to spend on a property to make it habitable will be spent wisely, saving you unnecessary grievances with prospective future buyers.

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