Yes, you can sell your home to avoid repossession.
Thousands of homeowners across the country fall into mortgage arrears every year leading to the very real threat of repossession.
If it doesn’t look like your financial situation is going to improve any time soon then selling up may be your best option.
Selling a property offers a chance to pay off any debt, avoid repossession, and can even free up a bit of cash for a fresh start somewhere else.
There are a number of factors to consider before making your decision though.
Is your house in negative equity? If that is the case you may need to get permission from your lender in order to sell. Potential selling costs will need to be taken into account as well.
Also, how long is the process likely to take? When dealing with debt, the sooner you have the money in hand the better.
At what point should you consider selling?
Receiving a letter from your mortgage lender threatening repossession can be extremely stressful, not to mention a bit scary.
It’s important that you remain calm and consider all options available to you.
Can you regain control of your finances and begin making payments on time?
If that is unlikely to happen, then speak with your mortgage provider about renegotiating payment terms so they are more manageable.
If you are unable to come to an agreement, and you have exhausted all other re-financing options, then it’s time to look at selling.
With potential court proceedings on the horizon – as well as continued missed payments adding to the debt – you will want to move ahead with the sales process as quickly as possible.
Selling a home on your terms, even in these circumstances, is far more beneficial than the alternative.
If your home is repossessed the lender will put it up for auction.
This removes you from the process, and will invariably result in the property fetching a lower price than you would have received had you handled the sale yourself.
And if you don’t end up receiving a high enough sale price to cover your arrears, you will still have to find a way to settle the shortfall with the bank.
This isn’t the only reason to avoid repossession either.
Repossession can have serious long-term financial implications including a negative impact on your credit score for years to come.
Enquire directly for sales advice
If you are selling to avoid repossession, Hull Cash Buyers is the perfect place to come.
We specialise in quick house sales, and will work alongside you to ensure the whole process remains as stress-free as possible.
If you’re struggling to work out what your best option is, our experienced team of property experts are on hand to offer you the best advice for your current situation.
Frequently Asked Questions
Does selling my home write-off my debt obligations?
This will depend on how much money you owe, and how much you receive from the sale. Should the buyers’ funds cover the amount you require, the first debt you will repay will be your mortgage. The remaining profit can be used to settle any other debts. If the sale does not cover your outstanding mortgage then you will have to make up the shortfall.
What does a mortgage lender have to do before they take me to court?
When a homeowner falls into arrears, the lender must complete certain steps before they initiate court proceedings. They must provide you with clear information on how much you owe, offer alternative repayment plans, and make you aware of any relevant government schemes to assist borrowers struggling with debt. They must not apply any pressure through excessive telephone calls or correspondence either.