Definition of "Void Property"
A void property is a real estate property that is immediately available for new owners or renters as it is vacated. Void real estate properties can be occupied at a short notice as no tenant or landlord is currently occupying them. For landlords or real estate investors, a void property is something they want to be occupied as soon as possible to avoid vacancy and income loss.
There are several methods through which a real estate investor can minimize the potential loss on a void property, some of which being proactive marketing strategies or the property’s overall condition. A void property affected by wear and tear is more likely to be left vacated as renters are not attracted to it.
Why is there Void Property in Real Estate?
While there is a high demand for quality real estate properties, there are many void properties on the market that are unoccupied. The reason this happens is that many of those properties are privately owned, and bringing them back into circulation may be difficult. These are properties that are either a result of abandonment or suffer from dereliction.
Some of the ways through which authorities can take action against a privately owned void property are by sanctioning the owner. These sanctions are meant to motivate the owner to take action towards either putting the property back in circulation or selling the property to someone that might do that in their place.
However, some of these void real estate properties are owned by landlords that invested in social housing. These may still be in the low-income housing programs, but those that aren’t could need a major make-over. That’s where house-flipping comes into the picture and restores the property for further use.
Why Choose a Void Property?
As mentioned above, a void property is vacated. This means that no current renter or landlord is occupying the property. The main reason why investing in void real estate properties is attractive for real estate investors is the fact that they only have to deal with the owner of the property. A real estate investor avoids having to deal with finding another property for the current inhabitant of the property. They just have to buy it and then use it for their own purpose and agenda.
When the property is void, the whole purchasing process runs more smoothly as there is no need to wait for the occupier to find another place to live. Because of that, real estate investors find it both appealing and challenging as once the property is in their possession, they have to make it available for potential renters or buyers soon as not to lose money while the void property is made presentable. Like any other investment, void real estate properties come with risks, but those risks are all dependent on the investor’s ability to rise to the challenge.
Comments for Void Property
I sold a partnership property to a partner. My partner paid me my portion through a lawyer but did not make payment to mortgage on the completion date. Is my contract considered as void?
Jun 23, 2021 18:49:26Hey Chirag! Thank you for reaching out to us. A mortgage contract does not go void with a late payment in a few days. If I understand it correctly and the mortgage is in your name, you should consider transferring the mortgage to your partner if your mortgage is assumable. To verify that, get in touch with your financial adviser. Like this, the mortgage will be in your partner's name, and you won't be liable if he is late on payments.
Now, to get back to your question. If one payment is late, it does not affect the mortgage unless it isn't paid anymore. What can happen, however, is that you'll get bad credit because of late payments.
If the borrower falls behind on their mortgage payments, the mortgage can default. The default period can turn into a forecloser, however, and that's when things get serious. The foreclosure process can start after 30 days from the due date of the last payment that was not met. The mortgage servicer can start a foreclosure once you are 120 days late on your payments.
The best option for you is to transfer the mortgage to your partner, which will liberate you from any responsibility.
Jun 25, 2021 12:47:13Have a question or comment? We're here to help.