As part of your property investment education, it is important to understand what forces a person to become a ‘Motivated Seller’.
Repossessions
Under the terms of most mortgage contracts, the lender will reserve the right to issue repossession proceedings if repayments are not regularly made on time. Two months of arrears is quite sufficient for a lender to take action. In reality, most lenders will try to reach a mutually suitable arrangement to help the person clear his/her arrears and avoid taking proceedings.
Unfortunately, should this not be possible the lender may take legal action to gain possession of the property. At this point the lender may commission an estate agent to take action to sell the property quickly. This usually results in the property being sold under market value.
Financial ProblemsWhen people get into financial difficulties and then struggle to pay off their mortgage repayments, credit cards, loans and other bills, they may wish to avoid CCJ’s or a downgrade to a smaller home. As the financial pressure mounts the need for a quick sale becomes paramount.