A new website has launched that puts repossessed homes on the market at knock-down prices.
PropertyEarth has launched three months after the controversial arrival in the UK of US auction company REDC, which specialises in selling off homes seized by banks or building societies.
There is no doubt a gap in the market at the moment, as the economic turmoil takes grip, unemployment rises, and people find it harder and harder to keep up with their mortgages.
Last year 40,000 UK homes were seized and the owners forced to hand the keys back to their mortgage lender, and some experts believe that by 2011 this figure could jump to 120,000.
What this means is that there are bargains to be had out there for the property investor.
PropertyEarth describes itself as a “one-stop” search engine which aims to match investors or landlords with “chain-free” or “distressed-sale” properties.
Founder Dominic Toller rejects the suggestion that his firm is profiting from the misfortune of others, describing his site as “a consumer champion. If we do our job, we’ll help that property get sold more quickly and for more money.
So is the site fulfilling a necessary demand and could be a short cut to a bargain home or a new addition to your portfolio? Or will it, if successful, reduce tolerance of missed mortgage payments and encourage banks and building societies to become more ruthless in their pursuit of returns on investments?
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