A repossession property is a home that has been claimed by a lender since the original owner has failed to pay their mortgage.

Such a property is often cheap because the lender will want to sell it as quickly as possible to claw back the money they have lost and the costs of the process.

You can find repossession sales through an estate agent, or through an auction house - which is usually the most expedited option available.

Auctions can be a speedy way to sell a property, and you can browse listings around a month before the date of the auction - in that time, you can usually book a viewing and get an offer to lend in place.

Buyers will often use bridging finance, which is much quicker to arrange than a typical mortgage and can be refinanced with a lower cost lending option once the purchase has been completed.

Estate agents will sometimes take on managing a repossession property sale on behalf of the bank or institution that owns it.

However, such sales are often not marketed publically, and so you might find such properties by calling an agent and asking what they have on their books.

Sometimes, but not always! It is normal for a repossessed home to be sold at around 20% to 30% less than you'd expect to pay at regular market prices.

The lender will be less concerned with getting the best price for the property, more interested in selling it quickly and ensuring the value achieved covers their losses.

As a downside, that means that a bank will be highly unlikely to spend anything on improving the property, preparing it for sale or dealing with any repair issues.

A positive is that you're buying directly from a bank or lender, so there isn't any property chain to deal with.

There are some potential pitfalls to bear in mind:

• The home is more likely to be in bad condition.
• You need finances in place quickly to buy at auction.
• It's vital to understand all of the costs involved.

As we have discovered, a lender won't be worried about investing in the property condition, so it is very common for a repossession property to be in a state of disrepair. Therefore, you will probably need to budget for redecorating and renovations.

Buy to let repossessions can also be problematic if there were tenants in the property who are still in situ, or still have access. Generally, you'd expect tenancy issues to have been resolved before a buy to let repossession is resold, and should clarify the situation with the agent or seller before completing.

Financing at auction moves quickly, and you need to have an agreement in principle to have enough time to pay the balance - due 28 days after the auction.

You also need an immediate deposit, and to be aware of auction fees and commissions.

While speed is the priority, an agent may also accept offers after accepting yours, and if they can get a higher price for their client, there is the potential for gazumping. That could mean losing arrangement fees and legal costs, without ending up with the property.

Costs can include surveys, reconnecting utilities, and repair works, so a full structural survey is vital to know what you're getting into.

Yes, it is somewhat different, and you need to understand the process, as it can be reasonably complex.

If you make an offer on a repossession sale that is accepted, this must be publically advertised in the local media with an open invitation for competing bids.

Auction sales usually require at least a 10% immediate deposit, with the full balance payable within 28 days, so having your financing arranged in advance is crucial as this is not enough time to find a mortgage and complete the application process.