My Personal Finance Blog

Buying a Repossessed Property

If you are looking for a cheap house you might be tempted by the possibility of buying a repossessed house or foreclosure. Repossessions are of course increasing at the moment so this could be the ideal time get yourself a bargain.

Buying a bargain does of course mean that somebody else is losing a packet. If you are of a religious bent you might argue that this is all God’s will. If you are not religious then you might just see it all as Darwinian economics, the survival of the smartest (or the luckiest) which ensures that in future generations people will be smarter (or luckier).

Nevertheless, be all this as it may, there are possible pitfalls so take care, even if you are in the fortunate position of having some spare cash to buy a bargain home.

Repossessed or foreclosed properties can be a godsend for people looking for a house who can’t afford one.

The number of repossessed properties is still on the rise according to the UK’s Council of Mortgage Lenders. There were 12,800 repossessions in the first quarter of 2009, compared to 10,400 in the last quarter of 2008, and 8,500 in the first quarter of 2008.

So where do you have to go to get your hands on one ? And how do you do it ?

The first thing to realize that your desirable repossessed residence is owned by a bank not by a flesh and blood person. The person was booted out by the bank, so that they could sell the house at a loss, rather than let the person live in it. But that’s bankers for you – totally useless in my opinion.

But I digress. The bank wants to sell the property and get it off its hands as it does not want to be bothered with maintenance or renting houses etc..

Before you start you will need to get an ‘agreement in principle’ from a mortgage lender, so that you know how much they are willing to lend you.

You should obtain a certificate that says how much you can borrow, which should convince the seller that you have the necessary ready cash to buy the property. This won’t cost you more than a credit check.

Now you have to find the repossessed property of your dreams. They are advertised by smaller estate agents and websites such as Globrix and Rightmove, but they probably won’t have REPOSSESSED plastered all over them. The ads. generally look cheaper however, with no photos and economical descriptions. You could also try asking an estate agent about repossessed or distress sales.

The next place to look is property auctions. Bear in mind, however, that property auctions attract property investors who know what they are doing and generally have access to a fair amount of cash. So make sure you do your homework first.

If you are think buying at auction is for you, then you need to check the catalogue which is produced weeks before the auction date and view the property you are interested in before bidding on it.

If you are buying from an estate agent then the process is not straightforward. First, after an offer has accepted on a repossessed house, the estate agent is legally bound to publish a ‘Notice of offer’ in the press. Other prospective buyers are thus invited to make a bid over a a period of seven days. This is a double-edged sword as, clearly if you see such a notice of offer on a house then you can make a bid yourself.

This process means that you are potentially in an auction, and even after the seven days the bank can accept a better offer if one comes along. It is important to realize that until contracts are exchanged, you do not have a legal right to actually buy the property. The bank of course is only interested in getting the best price for its property.

You will have 28 days to complete, but you could find yourself paying for a survey etc… only to be outbid on day 27.

Auction

Buying at auction is different from buying through an estate agent. Once the auction ends you are deemed to have exchanged contracts, neither party can change its mind. The transaction must be completed within 28 days.

This is more straightforward but you have to pay a 10% deposit on the day of the auction, which you risk losing if you do not complete the contract. So in some ways you are better getting any survey and legal work done before the auction – despite the fact that you don’t know if you will win the auction or not.

The Property

Repossessed properties are generally in need of a fair amount of work so you need to factor this into your costs.

It is important to chase people up too, as the transaction needs to be completed in 28 days. You are recommended to chase both solicitors and lenders twice a week at least.

Finding The Perfect Rug Online

1. Gather a list of websites that appeal to you. These are all potential sources at this stage. Spend a few moments to ensure that their stock is appealing and fits what you’re looking for. The number of sites you add to your list is entirely up to you, but keep in mind that the more you add, the longer it will generally take to sort through and narrow the list later on.

Tip: do check that the website at least looks legitimate at this point. You’re looking for accreditation or secure shopping seals and a contact page at the very least.

2. Once you have your list of candidate websites, it’s time to browse through each site for potential rugs. Keep in mind that many websites have an ongoing ‘deal of the month’ or similar offer. It’s worth spending a little time looking in this section in case there’s a rug that fits your needs in there. If you can’t find the section on the website, look for words like ‘sale’, ‘deal’ or ‘bargain’ as these are generally good indicators.

3. Make a list of the best rugs. These are your potential purchases.

4. Do a quick price comparison between all the items across all the sites to see which rug works out cheapest. Do take into account quality and anything else specific to the rug (such as ease of cleaning, whether it’s machine washable etc) when deciding the value of the rug. Keep in mind that oftentimes a more expensive item can be of much better quality and far more practical than the cheaper alternative and thus work out cheaper in the long run.

5. Narrow down your selections to the top two or three rugs. This invariably involves discarding some of the previous findings, but keep a note of them either way just in case you need to return to them later on if one of your final choices falls through.

6. Finally it’s time to do a website comparison. Specifically, you’re looking for benefits that each rug seller offers with the purchase. Things like:
- free delivery
- money back guarantee
- secure shopping
- after sales support
- anything else

7. Ensure that the website you’re considering is legitimate. This check goes beyond the preliminary check in step 1 and involves taking a closer look at what the website claims to be, do, or sell. Look for customer testimonials both onsite and offsite. Pay close attention to the latter. Try searching the website’s brand or trade name in Google and looking for what other people may be saying on other websites that don’t belong to the vendor. You’re basically looking for negative comments in order to avoid ending up in the same situation.

Finally, if you’re happy with your findings so far, try contacting the seller before finally making your purchase. Do so at least to verify that there’s somebody at the other end of the telephone or e-mail address. Ask them a question about the item you want to purchase and observe how they handle your query.

If everything checks out, then you’re ready to purchase your new perfect rug.

Shared Senior Apartment Living

What an eye opener, we dream of our retirement. I want the luxury of life, because I worked hard for 50 years. I am one of those first 10,000 and I want to help some of my generation find what they want. This is not going to be what everyone wants or is thinking. Some have been more fortunate than others landing good jobs that have allowed you to save for retirement. Others are relying on Social Security and a small savings.

Here is a great option if you are still feeling as young as you did when you were in college. So many of us are old on the outside but we feel about 30 if we don’t look in the mirror. Shared apartment living for seniors is right down your alley. Get a nice two bedroom two bathroom apartment so you have privacy and choose a person that is like minded as you are to share the apartment.

Retirement communities today have nice two bedroom apartments that cost around $2900 dollars, but if two share that apartment the cost of the second person drops to $400. If two people share the $3300 expense it cost each $1650 monthly. What a bargain for what is given in return.

There are some huge differences in personalities and lifestyles between people as they age. The better we are at choosing a person that fits our likes and dislikes the better it will work. The resort lifestyle or senior communities offer a large array of wonderful pleasures. Look at what life can be in a great community.

Starting with your social well being sharing your great personality with others your age is an experience. They want to know about you and you will want to know about them and what better way to do this than in a group setting breakfast, lunch or dinner. We have ways to meet people your age and get to know them before you even think about a possible shared apartment. Make an effort to have lunch with a group of seniors your age thinking of the possibility of sharing an apartment and getting acquainted. I’ll tell you more about that later.

These surroundings enable a person to take great interest in activity. Why, because staying active is a proven way to extend life and you have a far greater quality of living. Being alone is not fun, I know because I have been involved in retirement living for the past eighteen years and my friends that I have talked with tell me they were alone in the home and had feelings of loneliness. Who has some medical concerns that make you think if someone else lived with you it would make you feel a little more at ease about your problem. Although the children do not live that far away they just don’t have the time to visit often. Sometimes we have to call them or want to call them late in the night if we feel bad. We don’t though because we know they have a job to go to in the morning and they need their sleep. I am an expert, you can ask my mother.

Whether you are applying directly to your lender or claiming eligibility under HAMP, the practical decisions are all to be made by the lender. You do whatever you can to set out your side of the proposed bargain with a clear set of accounts showing money in and money out. The need is to demonstrate a guaranteed slice of your monthly income that can be devoted to paying a reduced instalment. So list everything you are obliged to pay to keep body and soul together, from food to utilities to transport to health insurance, and so on.

Without the modification, this is going to be negative, i.e. on paper, you are spending more than you earn. The “trick” is to show enough to cover a modified instalment, perhaps with a tiny slice of money left over for the inevitable emergencies. If the modified instalment you prove can be paid is enough to keep the lender less unhappy, the modification will be agreed on a trial basis. But if the minimum instalment the lender requires will leave you in negative territory, your offer to modify will be rejected. Why reject a good faith offer? Because people who have to juggle monthly payments to fit into the available money almost always default again. Your income must cover all outgoings.

If the modification is agreed in principle, it moves on to a formal trial basis. In theory, this is a three-month trial, but the reality is that the lenders usually drag their feet and are very slow to convert the trial into a permanent modification. This ought not to affect you. After all, you are paying the agreed amount. But there is a problem. Until the modification is made permanent, the lender will report you to the credit rating agencies as still delinquent. This is grossly unfair.

You are paying what is agreed. But, as the law stands, the unpaid balance each month will be reported as late. Thus, the longer the trial period is allowed to drift the worse your credit score will become. This requires action. You should contact the three major agencies, Experian, Equifax and TransUnion, and ask that details of the trial be added to your credit file. That way, even though your score will continue to decline, all other lenders will be able to see what is going on.

So what is happening during the trial other than you proving your ability to pay the reduced instalments on time? The answer is slightly disheartening. It is always in the lender’s interest to collect as much money from you as possible on your mortgage. But, while you stay in default, the lender is entitled to foreclose at any time. If the lender judges it will make more money by foreclosing rather than accepting the reduced payments over the rest of the term, it will always foreclose.

It is simply collecting as much cash from you as possible before triggering your eviction. No-one said the home loan industry had to work fairly, and it does not. The only time the lender will accept a permanent modification is when the accounts clearly show more profit in keeping the mortgage alive. While the housing market remains depressed, the odds are in your favor. But if resale prices start to rise, the odds will swing against you.

Searching for car rental online has never been easier with the help of the internet. You can easily search and compare prices from various car rental suppliers, often on the same website.

 

Car rental rates often vary considerably depending on what is included in the rate. Look out for those too-good-to-be-true prices – they probably are. You may think you have found a bargain, but it will be a different story when you go to pick up the rental car, only to be told you have to pay for lots of additional charges.

 

So when you are comparing car rental costs online, ensure you are comparing like with like. There are various extra charges which can push up the price of your rental car, so make sure you look out for them. Often if you add these on to that oh-so-low rate, it doesn’t look so appealing anymore.

 

What is Included

 

Most car rental websites will list the inclusions with the rental. These will vary depending on suppliers but generally standard rates include basic insurance and tax.

 

What is Extra

 

Again this will vary but look out for the following:

 

Airport Fees

 

Also known as a Premium Location Fee, you will be charged extra to pick up a rental car at an airport location. This charge varies depending on supplier and location, but in the UK for example could cost as much as 13% of the rental value.

 

Vehicle Licensing Fee

 

This is a Government imposed levy for rental cars to partially recover the registration costs. Approximate cost in the UK: GBP1.22 per day, which over a long period can add up.

 

Additional Driver Fees

 

If you want to have more than one driver for your rental car, this is often an extra charge. Daily charges range from GBP4-20 in the UK, EUR4-8 in Italy and from USD3-10 in the States.

 

Young Driver Surcharge

 

This is often charged if the driver of the rental car is under the age of 25. In Australia, this ranges from AUD13-22 per day. In France, the Young Driver Surcharge varies from EUR20-35 per day, GBP10-25 in the UK and USD5-45 in the USA.

 

Excess Reduction

 

Each rental car often comes with an Insurance Excess which is the amount you would be responsible for if the rental vehicle is damaged. This can often be a few thousand dollars but can be reduced with an optional excess reduction charge which can be paid daily to reduce your excess to a few hundred dollars or even to zero.

 

Additional Equipment

 

Things like child seats, ski racks and snow chains are often available at an extra charge.

 

One Way Rentals

 

If you want to drop off your rental car in a different city from where you picked it up, there may be a one way fee. Again, this varies depending on the supplier and destination. Ensure you ask before you pay!

 

All these extras can add up. Sometimes a standard rate may be right for you but if you are picking up at the airport and want an extra driver, for example, it may make sense for you to go with an inclusive rate.

 

Read the Small Print

 

Be sure to read inclusions carefully to see what the rental rate covers and which one is right for you. Look for possible restrictions and additional costs and find out what exactly they are before you pay. If you find a low car rental rate, make sure that the additional costs do not outweigh the savings.

 

At DriveAway Holidays, each car choice will show clearly if it is a Standard or Inclusive rate and will give you a list of what is and what is not included.

 

People often talk about the “hidden costs” of car rental, but the reality is, they are not hidden at all – you just need to know what to look for.