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Banks Withholding Huge Inventories Of Repossessed Houses From Market


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I met a chap today who manages repossessed properties for the banks.

He mentioned that recently the number of BTL repossessions was announced by and industry organisation for that month, and that in the very same month he had had more than that passed to him to manage alone...

What?!

So one bloke looks after repos for all the banks?

Smells like...

If I was a banker wanting to keep repos off the market I wouldn't be repo'ing them. There'd be no point at all in leaving them empty and paying someoen to manage it, even if one man can manage all of them. Might as well keep the defaulting "owner" in there until I thought I could sell it.

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In my experience the banks are repossessing homes through the courts. What they seem not to be doing is enforcing the repo orders. This allows the people to stay in their houses for a lot longer than would have been the case a couple of years ago. Most people will move out at this stage, or shortly after they know their house as been "taken" although I am coming across more and more people who are just staying put and planning on staying put rent free until the notice of enforcement comes through the door.

After the enforcement notice arrives the court can send in the bailiffs.

I dealt with one family who had their house repossessed last August, to date the repo has not been enforced and they are still there.

So the banks own the house but they have caretakers in the house who can be moved out legally in a reasonably short time. 4-6 weeks.

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What?!

So one bloke looks after repos for all the banks?

Smells like...

If I was a banker wanting to keep repos off the market I wouldn't be repo'ing them. There'd be no point at all in leaving them empty and paying someoen to manage it, even if one man can manage all of them. Might as well keep the defaulting "owner" in there until I thought I could sell it.

No, you muppet!

I'll explain.

I met a guy who manages repos for banks. He lets some and sells some, depending upon the strategy of the instructing bank.

The disclosed stats in a certain recent month say that all of the banks repoed, say, 1,000 BTLs in one month, yet in the same month he alone was instructed on more than 1,000 properties.

This means that, as he is just one of several organisations doing this job, the stats must be underplaying what is going on.

Better?

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Holding property while the price of property collapses is stupid.

These properties will eventually come on the market, and when they do, they will drag the market down further.

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