Struggling to meet your mortgage payments doesn’t necessarily mean you have to sell your home. There are plenty of things to do and steps to take before it gets to that, so it is important to understand your options.
If you do sell, it may be worth looking at sell house fast companies such as We Buy Any Home as we offer benefits compared to traditional selling methods, which we’ll go into in more detail below.
But first things first. If you are facing repossession then there are some steps you should take in the first instance.
Get Advice
A debt adviser can guide you in creating a budget, prioritising your debts, and engaging in discussions with your lender and other creditors. They will tell you to avoid the urge to hand over your keys to your lender for instance. This is often referred to as voluntary repossession.
By returning your keys and vacating the property, you forfeit your right to reside there, which could impact your:
- Benefits
- Credit score
- Options for seeking assistance with housing from the council
Seeking advice is often hard as you may not want to face up to the issues at hand. But doing so can help to protect yourself and your home so use it as a vital first step. If you do decide to sell up, then you need to be clear on what is involved – it is not a case of just selling up and paying off the debts as there are outgoings you need to consider too.
What do I need to do to sell?
Understanding the steps of selling to prevent house repossession is essential when faced with this difficult situation.
Weigh up the Costs of Selling
One of the initial steps you should undertake is to evaluate the costs associated with selling your home. Consider estate agent fees, conveyancing costs, and other expenses that could arise during the process. Factoring these costs into your budget ensures you have a realistic understanding of the financial implications involved.
Evaluate Your Home’s Condition
The state of your property can greatly impact its selling potential. A well-maintained, visually appealing house is likely to attract more potential buyers and achieve a higher selling price. Therefore, address any significant issues and consider making small improvements where possible.
Anticipate Potential Debts Post Sale
In cases where the selling price of your home might not cover the remaining mortgage or other debts, it’s crucial to plan for this potential financial shortfall. Make sure you fully comprehend the consequences and consult with a financial advisor to explore viable solutions.
Understand the Current Housing Market
The housing market is often volatile and subject to numerous influences. Do your research or consult with an estate agent or home buying service to gain insight into the market conditions in your area. This knowledge will guide you in setting a reasonable price and provide an estimate of how long it might take to sell your property.
Seek Financial Advice
Always seek professional financial advice before deciding to sell your home. Organizations like Citizens Advice can provide invaluable information and guide you through this challenging process.
Handle Negative Equity
Negative equity, where your home’s value is less than what you owe, requires careful navigation. In such situations, you need your lender’s consent to sell the property. Remember, any shortfall between the sale price and the outstanding debt will still need to be repaid by you.
Seek Assistance from Your Lender
Lenders can often provide support when selling your home. This assistance could include covering your selling fees, temporarily reducing your mortgage payments, and even helping with moving costs. If your lender doesn’t have a formal programme, it’s always worth asking if they can offer any help.
Engage with the Council
Local councils can offer help if you’re struggling to pay your mortgage and have built up arrears. They can guide you through your options and may even suggest strategies for resolving mortgage issues or preventing repossession.
Negotiate Selling Time with Your Lender
If you’re making sincere efforts to sell your property, your lender is obliged to consider delaying any legal action. You’ll need to prove that the property is listed at a reasonable price and provide all necessary documents.
Request Additional Selling Time from the Court
If your lender initiates legal action, it’s crucial to attend the court hearing. Here, you can request more time to sell your property if you can prove that the sale will settle your mortgage debt or if you have other funds available.
Understand the Impact on Your Benefits
The residual money after settling your mortgage and other debts can affect your benefits. It’s important to seek advice tailored to your situation to ensure you understand the potential implications and are making the best decisions for your financial future.
If you decide to sell your property to avoid repossession, We Buy Any Home can help. We have extensive experience in this field and are sensitive to the challenging circumstances you may be facing. Our service allows you to sell house fast and provides a cash offer within as little as 24 hours, enabling you to quickly clear your mortgage arrears and alleviate the financial stress.
We Buy Any Home is a trusted, reliable company with a proven track record in helping homeowners navigate the difficult journey of selling their property to avoid repossession. Our process is transparent, and our team is always available to provide support and advice, offering a lifeline when you need it most.
Repossession should be the last resort. Start by seeking advice and exploring all possible avenues to manage your situation. And if selling becomes your chosen path, you can count on We Buy Any Home to help you through the process with understanding, professionalism, and efficiency to help you sell house fast.
