LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
BANKS & HOUSE REPOSSESSIONS: LAOIS
15th May 2024
Due diligence is crucial when purchasing a repossessed house, especially if your goal is to secure the property for the lowest possible price. Here's a comprehensive checklist for due diligence:
Title Search:
Conduct a thorough title search to ensure clear ownership and identify any existing liens or encumbrances on the property.
Legal Issues:
Investigate any legal issues related to the repossession. Ensure that the legal process followed by the lender was proper and that there are no outstanding legal challenges.
Property History:
Research the property's history, including past sales, any disputes, or any other relevant information that might impact its value.
Inspection:
Hire a professional inspector to assess the property's condition. Identify any structural issues, plumbing or electrical problems, and other potential costly repairs.
Survey:
Obtain a recent property survey to confirm boundaries and ensure there are no encroachments or property line disputes.
Zoning and Planning Permissions:
Check local zoning regulations and planning permissions. Verify that the property complies with local land-use laws.
Environmental Concerns:
Assess potential environmental concerns on or near the property. Look for issues such as contamination or proximity to hazardous areas.
Property Value Assessment:
Obtain a professional appraisal to determine the fair market value of the property. This can help you assess whether the asking price is reasonable.
Market Analysis:
Analyze the local real estate market to understand current trends and property values in the area.
Repair and Renovation Costs:
Estimate repair and renovation costs based on the inspection findings. This information is crucial for negotiating a lower price.
Local Amenities and Infrastructure:
Evaluate the proximity of the property to essential amenities, schools, public transportation, and other infrastructure, as these factors can impact property value.
Neighborhood Analysis:
Assess the overall quality and safety of the neighborhood. Consider factors such as crime rates, school ratings, and future development plans.
Market Conditions:
Consider current market conditions. If it's a buyer's market with excess inventory, you may have more negotiating power.
Comparison with Comparable Sales:
Compare the property with recent sales of similar properties in the area. Use this information to gauge the property's value and negotiate accordingly.
Seller's Motivation:
Understand the seller's motivation. If the lender is motivated to sell quickly, it may create an opportunity for negotiation.
Financial Analysis:
Conduct a thorough financial analysis. Evaluate the potential return on investment (ROI) and assess whether the property aligns with your investment goals.
Liabilities and Obligations:
Determine if there are any outstanding liabilities or obligations associated with the property, such as unpaid property taxes or homeowner association fees.
Potential for Future Growth:
Assess the potential for future growth or development in the area. Positive trends could increase the property's value over time.
Review Auction Terms (if applicable):
If the property is being sold at auction, carefully review the terms and conditions of the auction. Be aware of any fees or obligations associated with the purchase.
Professional Assistance:
Work with professionals, including real estate agents, attorneys, and inspectors, who have experience with repossessed properties. Their expertise can be invaluable during the due diligence process.
By thoroughly conducting due diligence, you'll be better equipped to negotiate a lower price for a repossessed house. This process helps you identify potential risks and allows you to make informed decisions based on the property's true value and condition.
15th May 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
Verify Loan Options:
Ensure the broker provides you with a variety of loan options and helps you understand the pros and cons of each. They should tailor their recommendations to your specific needs.
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Self Employment Details
If you are self employed you will be asked about your personal financial details. Self employed applicants will need to submit copies of their last three years audited accounts, accompanied by their accountant's confirmation of the applicant's current tax position.
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Cashback mortgages
This type pays out a cash lump sum once you draw down your home loan. The money can help pay for moving expenses, like legal fees and are popular with first time buyers.
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If the mortgage application is a joint one, then details of the second applicant will also be needed. You will be asked to indicate the reason for your application:
First time purchase
Investment
Equity Release
Other
Moving house
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Open a separate savings account specifically for your home purchase. This can help you keep track of your progress and prevent you from dipping into the funds for other purposes.
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What fees do you have to pay?
Here are some of the main types of fees you’ll have to pay if you’re moving home, remortgaging, or switching lenders:
Stamp duty: A tax you need to pay when you buy a property. Our stamp duty calculator can work out how much you’ll owe.
Solicitor fees: These need to be paid if you’re switching lenders or buying a property.
Valuation fee: These will be charged if you’re switching lenders, changing the terms of your current mortgage, or buying a property.
Survey fees: When you buy a property, you’ll need to have a survey carried out for the mortgage lender.
Arrangement fee: This is charged by some lenders to arrange the loan, but not all.
Mortgage broker (mortgage credit intermediary) fee: Brokers may sometimes charge an arrangement fee, but check before you go ahead.
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Loan Repayments: If you have other loans, such as car loans or personal loans that are due to end soon, making regular payments on time reflects positively on your financial stability.
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Loan-to-Value Limits (LTV)
A 10% deposit is usually required for first and second-time buyers. However, the Revenue's Help to Buy scheme can reduce this requirement for newly built properties.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
Disclaimer: Although we will do our best to provide you with correct details, information provided is subject to errors or omissions. IrishHouses.ie is a private blog on the subjects of mortgage debt, arrears and house repossession in Ireland.
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