The United Kingdom's housing market seems to be running on a track quite similar to the one here in the United States.
And the wealthy in Great Britain have now found that they, too, can lose their homes. The Times Online reports that several banks have seized an
The six-bedroom house on Ilchester Place in the wealthy enclave of Holland Park has been repossessed and put on the market at
£10 million.The property was owned by Robert Bonnier, 38, who shot to fame in the dot-com boom a decade ago with Scoot.com.
It is believed to be the most costly property ever repossessed in England.
Bonnier, according to the Times, bought the house last year for
Seems the best laid real estate plans everywhere are not quite panning out.
UK real estate watchers fear that this high-end repossession could be the first of several, if not many. One agent told the paper, "There are five potential repossessions in Mayfair this year, which is unheard of."
Repossession vs. foreclosure: When I read the story of the London home going back to the banks, I thought maybe that repossession was Brit-speak for foreclosure. But it seems that home repossession and foreclosure in the UK are two different legal situations.
Mark Harrison at Negotiation, Negotiation, Negotiation talks here about the distinctions between repossession and foreclosure in the UK.
Here in the U.S. we don't usually hear the expression "home repossession" in connection with a borrower defaulting on a mortgage. But apparently "repossession" is the technical term for the end result of the foreclosure process here in the States.
Julia Redstone of Foreclosure Listings Blog talks about home repossession in this post. Essentially, during the foreclosure process, if the home goes to auction and there's no buyer, then the lender takes over, or repossesses, the house.
You might be more familiar with the acronym REO, for Real Estate Owned bank property. RealEstateABC.com's Walt Harvey discusses REOs here.
Any real estate and/or foreclosure experts out there, please feel free to add your comments about and elaborations on home repos, in the U.S. or UK.