Home repossession is by far every property owner’s nightmare. A recent survey shows 79% of homeowners and residents in the UK ranked repossession as one of their greatest insecurities as far as mortgage and long-term loans are concerned. Most would rather lose their car or business to repossession than their home if they had a choice. Nonetheless, it’s still possible to stave off a looming home repossession in case you’ve fallen back on your mortgage or secured loan repayment.
One of the easiest ways of amassing the equity needed in such a short time-frame is by quickly selling your house. In case of you have adjoining property to your name elsewhere, you can choose to sell that house and use the cash to hold back the lending institution or loan officer for a while. Otherwise, you can still dispose of your home in an elegant and profitable manner before the bank gets to you.
Here are some of the ways to go about it.
a.) Adopting a ‘ sell-and-rent-back” agreement with a cash property buyer.
This is probably one of the best strategies of staving off an impending repossession. The main drawback of any repossession is not that it takes away your property, but it is the ruthless and inhumane methods applied by some financial institutions when stripping you off your property. For starters, some will not care to evaluate the worth of your property before the repossession, thus you may end up losing much more than even what you had borrowed in the first place. The second drawback is that the lender is only under obligation by the law to give you a mere 30-day notice before showing up at your doorstep. If you have ever been neck deep in debt, then you know that such a short time-frame could as well mean 30 hours.
However, a good sell-and-rent-back scheme can go a long way is loosening up this fast tightening noose. It is based on the fact that some property buyers specialize in buying homes and later renting it back to the owners. Instead of facing the inconvenience of relocating to a new neighborhood, you can still keep your home but this time round as someone’s tenant. The money obtained from the initial settlement from such a deal can be used to pay back all or part of the mortgage or credit.
The upside to this approach is that you can use the extra time earned to adjust your finances while still residing in the same neighborhood. The disadvantage is quite clear, however. Selling you home for instant cash attracts very poor prices compared to what you could get through an agent.
b.) Selling your home to cash property buyers.
Cash property buyers represent the next easier way of getting relief from a looming repossession says Ask Susan, a UK fast house buyer. If your house is valued at ten thousand pounds for example, by selling it quickly for cash, you could salvage over eight thousand pounds and still pay a five thousand pound mortgage in full. This is the kind of flexibility that cash property buyers can accord you. Nonetheless, some of these investors may be reluctant to rent the house back to you. But, still you will end up saving a lot from the ensnarement of a repossession.
On the other hand, cash property buyers can liquidate your house quickly thanks to their vast network of prospective property investors. They could also have the cash ready themselves for you in less than 7 days if your house appears promising to them.
In any case, before approaching cash property buyer, take some time to do an extensive valuation of your home with the help of an estate agent or surveyor. It will place you at a much better position when bargaining for the best price from the buyer.
Perhaps the most significant advantage of disposing of your house for instant cash through a buyer is the timely and secure manner which characterizes the process. The downside, however, is that the discounted price could be a far cry than the true value of your home.
c.) Selling your house through an estate agent.
There are also known as property brokers. And they represent a crucial third wheel when fighting an imminent repossession. If you want the best price for your house and you are ready to relocate to a new apartment, then the brokers are your best option.
Since the agent has ascertained the ownership of your house, they will start marketing it to their network of investors. Since the agent gets a fraction of the price as a commission for making the deal happen, they will often fight tooth and nail to see that your home fetches the best value in the market. A good sale will translate to more money for them.
The only downside is that the disposal process could take months to close, as investors are very cautious when churning large notes for private property. Nevertheless, a registered property agent can help you stop an ongoing repossession by filing for court action barring the lending institution from claiming your home. They can do this by presenting proof that it’s already on an ongoing sale.
This way, they will be held accountable in refunding your lenders the cash owed after the deal closes. However, you will have to pay costly solicitor fees, which could translate to less money from your house at the end of the day.
It’s only advisable to go through with such a process if you’re 100% confident that your house will fetch a good price in the open market. Otherwise, battling a repossession through a third party is not such a smart move.
d.) Selling the house yourself.
There may arise situations where the services of property buyers or agents may not appeal to you. If you have a way to personally oversee the sale of your house to open market, then by all means go ahead.
Those living in leafy sought-after neighborhoods, putting up a ‘FOR SALE’ sign outside your house is enough to attract droves of investors to your front door. You can also choose to advertise your own house for free in online buy-and-sell websites. If you’re lucky you may close a lucrative deal in less than a week.