Funds on deposits are some money. The capital saved is therefore difficult to protect against inflation. In response to reality, many investors have shifted their funds to purchase real estate. Buyers drain the market heavily to pay the least amount, and sellers don’t really want to lower the asking price. Therefore, an increasing number of people interested in buying real estate are turning their attention to real estate from bailiff auctions.
A mortgage for the purchase of real estate from auctions is a very complicated transaction. Its success is determined by the correct selection of banks, proper preparation of the transaction before purchase and a precise and quick process of applying to the bank. The layman has a chance to commit a whole bunch of mistakes, which may result in e.g. loss of the deposit paid. In the article below you will find a very detailed description and characteristics of the purchase from the bailiff.
Getting a mortgage step by step
Before buying a property from a debt bailiff, it is a good idea to write the whole transaction step by step . This will allow faster and better organization of the entire operation. As the main ones I would indicate the following steps:
1. a visit to a credit advisor to determine your creditworthiness, to identify banks that will be willing to finance the investment and a list of documents that you need to collect to submit applications,
2. definition of the real estate financing strategy (mortgage, mortgage, cash, refinancing of costs incurred),
3. finding the property and checking it for the possibility of obtaining a mortgage,
4. inspection of the property within the time limit set by the bailiff (this is not always possible),
5. obtaining a promise to grant a loan by the bank,
6. deposit payment,
7. participation in a bailiff’s auction,
8. confirmation of winning the bailiff’s auction,
9. submitting applications, obtaining a decision and signing a loan agreement,
11. payment of funds within 14-30 days of winning the auction,
12. entry of ownership rights to Section II in the land and mortgage register.
What to check before bidding?
Buying an apartment, plot or house from a bailiff’s auction is a much more complicated operation like the rest of the transaction. Firstly, the complicated legal status of real estate, secondly, a very short time to complete the operation, and thirdly, a limited number of banks interested in financing real estate from a bailiff. However, it is remarkable because it gives you the chance to buy real estate on a bargain basis. In one sentence “who does not risk, do not drink champagne” To the standard I would like to specify should be checked:
1. bidding date,
2. the possibility of gaining access to property inspections for appraisers,
3. the date of payment for the property after obtaining the check,
4. who and how many people are registered in the property,
5. obtaining a financial decision before the auction,
6. information on the documents held by the bailiff and confrontation of the list with the requirements of selected banks.
7. bidding regulations.
Do all banks grant loans for the purchase of real estate from auctions?
Not all banks give the opportunity to take out a mortgage to buy real estate from a bailiff’s auction. It can even be said that the vast majority of the market offers this option. This is quite a strong limitation in the available offer. At the same time, this is not the only limitation in the selection of available banks. To determine the chances of getting financing, I invite you I provide free help using my 10 years of experience in organizing mortgage loans.