A controversial American property auction company that specialises in selling off repossessed homes at rock-bottom prices is preparing to open for business in the UK. Real Estate Disposition Corporation claims to be America’s largest real estate auction company, and is well-known in the US for holding blockbuster “foreclosure auctions” where, amid much razzmatazz they flog off people's homes at rock bottom prices.
Bidders are whipped up into a frenzy as the whole auction is carried out in a "Jeremy Springer" type bad taste event!
Fears have already been expressed in some quarters that signs indicating bank repossession could affect the value of neighbouring properties and even destabilise local housing markets.
In the UK, for-sale boards for homes that are to be auctioned off after being seized by banks do not usually carry the “R” word. One property market source claimed REDC had approached major UK mortgage lenders about putting their properties into its auctions. “They are going to be flooding the marketplace with really cheap property. It will devalue every other property in the street.
It’s the US cashing in our mortgage misery.
The company make their money by charging the successful bidder/buyer 5% commission.
So this is what Gordon meant about preventing protectionism? Taking advantage of 40,000 UK families and individuals who had their properties seized by lenders last year. Forecasts from home-loan firms predict at least 75,000 repossessions in 2009. Why haven't the government been helping these families instead of bailing out banks?
Why aren't the government buying these up for Social Housing?
NICE ONE GORDON!
Don't be silly.
ReplyDeleteRepossession is a zero sum gain.
We need less "social" housing, and lower house prices/high house affordability.
What we need is a new world order of decent people rather than the fuckwits we had to suffer last week.
ReplyDeleteWhat we need, is lower house prices, good mortgages and social housing that people can afford.
ReplyDeleteWe do not need another fatcat conglomerate coming in and making a profit out of people again!
"What we need, is lower house prices, good mortgages and social housing that people can afford."
ReplyDeleteGood old Maggie philosophy, that!
>We do not need another fatcat conglomerate coming in and making a profit out of people again!
ReplyDeleteYOU don't need anything, your in spain , and there are homes that need selling.
I worry this auction company will get bidders to overpay.
Britain NEEDS 7% interest rates if we want to afford the food bill.
AntiCitizenOne.
ReplyDeleteFirst, the point of the post was, the Jerry Springer type auction. It's in very bad taste and considering it's an auction on repossessed houses, even more so. Secondly, estate agents did a pretty good job of that and so did the UK economy, so what's new?
Thirdly, I am sick to death of people saying its not my business because I am in Spain. My kids live in the UK. I have a grandchild there and one on the way. Lots of my family still live in the UK. I AM STILL BRITISH, it is still my business, so fuck you.
I left the UK after suffering two years of complete misery which almost destroyed me. I needed to change my life or I would have been on anti-depressants by now.
There are families being made homeless while bankers, big business and politicians are becoming richer. Where are all those families going to live?
Who is going to be able to buy those houses?Normal working families won't, they won't be able to get a mortgage. The people who have been repossessed are in debt up to their eyeballs and probably on benefits now.
The people that can afford them have money put by and are probably single or they will be rich and probably foreign.
It was a mistake bailing out the banks. The money should have been given to banks that didn't fuck up, not to those who did!
Houses are getting more affordable THIS IS A GOOD THING.
ReplyDeleteAnyway sorry for annoying you about you living in Spain, I wanted to emigreat too but high house prices relative to salaries are a bad thing. Nothing you or the state can do while prices are high can help.
People who got repossessed can and should go bankrupt.
The U.K. NEEDS to live within it's means and that means only using long term debt for utility raising e.g. things like infrastructure and education, not holidays and consumption.