Those of you who are property investors will know, in the current climate there are a lot of opportunities to pick up properties well below market value whilst still helping the sellers. Yes, there is word of the market picking up and with the media covering this over the coming months, there will be a percentage of the mass population that will believe that this means they can hang on to get a better price for the property that they are selling. However, the fact is that there are still thousands of people  out there who are in trouble financially or who are just a few months away from getting into trouble if they lose their job or mortgage rates change.

The term “Shortfall” refers to the difference in what you owe on your mortgage and the final sale price of your home after it has been repossessed and all associated sale fees have been paid. According to the council of mortgage lenders the statistic is that over 20% of properties are sold for less than the amount left owing on the mortgage because sellers have left it too late and the lenders have simply dumped the properties quickly through auctions etc.

It is achievable to to pick up properties at 40% below market value in the current climate. Through research, getting out into the market and attending auctions you can pick up these deals. Also, you can use sourcing agents for picking up the discounted deals and there are more sourcing agents emerging around the country. I had a friend contact me recently with five properties that he was looking to sell at a discount because his lender had indicated that they were prepared to knock £20,000 off each mortgage on these properties. That is £100,000 they were prepared to just wipe off his mortgages if he could sell them. That is how desperate some lenders are to get cash back in.

I recently got a call from Mortgage Express to say that they were currently waiving their redemption penalties for Buy-to-Let Landlords who were willing to redeem their mortgages. This could be a good negotiation tool with any landlords you know who want to sell and who have a mortgage with Mortgage Express.

Essential rule: Never be afraid to ask for a big discount.