What does 'Repossession' mean when buying a property?
Find out what Repossession means when you are buying a property. 'What does Repossession mean?' plus over 150 other property related terms and jargon in plain English
When a home owner can not pay their mortgage for several months the mortgage lender often has the power to take the property and sell it themselves in order to recover the debt. The process of taking the property away from the owner is known as repossession.
Properties are usually listed with estate agents as "a repossession" because some buyers, especially professional investors, see this as attractive for a number of reasons:
- The vendor is a professional body and so able to move quickly to exchange.
- It is a chain free property so the buyer can move in straight away.
- The vendor is highly motivated to sell - they are not going to change their mind because of a change in personal circumstances.
Repossession sales are usually the last thing mortgage providers want to do. They are not property sellers, the process has costs (estate agent fees, solicitor bills, etc.) and if the mortgage had a high Loan To Value they may not even fully recover the debt.