Houses repossessed by ABSA bank are affordable and often in extremely good condition. A house is repossessed because the previous owners were unable to make their monthly payments. So the bank needs to sell the property to reclaim some of the lost funds.
Foreclosed houses don’t necessarily mean homes in bad condition. Repo auctions can reveal some incredible properties.
You can buy a home for a cheap price and renovate it. Or you can use some additional finance to knock it down and rebuild something more to your liking. The opportunities are endless when you simply do a little bit of work to find out more.
Repo auctions or houses repossessed by ABSA bank are listed weekly and monthly. You can look in your local newspaper or online for the houses that are listed. Then simply pick and choose the house you like.
Houses Repossessed by ABSA Bank – Finance
If you don’t have enough money to purchase you can get additional finance from ABSA. You’ll be required to put down a deposit. If you have a good enough credit history bankers are normally on site to assist you. You might find somewhere cheap but feel that you’d like to renovate. That’s where home loans and personal loans can be extremely helpful.
Properties like these don’t often become available. It’s a good idea to keep an eye on the listings. Even if you’re not sure you can buy straight away.
If you’ve seen a listing for repossession auctions and are keen to go then keep three things in mind.
First don’t ever buy beyond your means even if it does say ‘for sale’.
Second, take someone along with you so that you have an objective second person.
A foreclosed house might not be perfect right now. But if you renovate it could be. You could have your dream home with the bank repossessed houses sold to the public by Absa bank.
Homes Repossessed by ABSA Bank – Purchasing
Purchasing ABSA bank repo houses and property is a great way to find deals on different types of properties. If you are unsure of what exactly a repo property is… Then a simplistic version of explaining it is that the owners of the house could not afford their bond repayments anymore. Therefore the banks have taken back ownership of the property.
They do so in order to put them on bank auction. Or up for sale in order to make back the money owing on the property.
Here are a few advantages to buying homes repossessed by ABSA bank:
- There’s no transfer fees
Unlike the normal sale of properties where you would be required to pay a transfer fee you do not have to do so when purchasing a repossessed house or apartment. This therefore means that you will save a lot of money. Because transfer fees can be somewhat exorbitant. And can end up being hundreds of thousands depending on the price that the property is being sold for.
- You get properties at well below market value
The banks are only trying to make back the money still owing on the property. This means that you could get a property for well below market value. This however is subject to how much other people bid for the property if it goes on auction.
- Rates and taxes
In most cases you will not have to pay any outstanding rates and taxes that are owing on the property. As this will be paid by the bank that has repossessed the home. The banks do so as it allows them to sell the property as a clear title which makes the property more appealing.
Relaxed Lending Criteria
Banks are generally more relaxed in terms of their lending criteria due to the fact that they are anxious to make back the money owing on the house quickly.
This means that the chances of you being approved a home loan in order to purchase a repo house are greater than if you were applying for a loan to purchase a normal house. This is great for those of you who do not have the greatest credit history.
Downfalls to Purchasing a Repo Home
- They are sold as is
Unlike other properties where the previous owners have to declare any faults with the property before they sell, banks are not obliged to do so. It is therefore imperative that you inspect the house. Take qualified electricians and plumbers to assess the house before you apply for finance or make an offer.
- House Location
Although you may be lucky and find repo properties in great locations… The majority of repo houses are found in areas that are not as upmarket as you would like to become accustomed to. Therefore it’s important that you check out the crime rates of the area. And if you have children you should check out the schools in the area.
If you are in the market for repo houses or commercial property you need to approach them with caution. It is always best to assess the market.
See what similar houses or properties as being sold for in the area to ensure that you are not being ripped off.
However there are great cost saving benefits to buying homes repossessed by ABSA bank. You may find the house of your dreams in a great area.
To get your hands on a list of repo properties then the best place to look would be to ask your local ABSA bank branch.