| A solution for house repossession? If you're looking for a solution you'll find help here. Financial difficulties may lead you to question whether it's just not better to try to sell your house. |
But before you finalise the best alternative for you - and it's likely you have several possible solutions to choose from - make your decision after taking legal advice and exhausting all the options. Speaking to independent third parties such as Shelter is important. If you're under pressure you want to be thinking clearly before deciding selling is the best option for you.
Being honest about how you got here
Companies that buy homes are asked to find solutions for more people than we can possibly help. To help us help you it's important you're able to identify why you're at risk from house repossession.
Has your income reduced? Is this temporary or more long term?
Are your mortgage or loan payments higher?
Have you tried and failed to come to an arrangement with your lender (s)?
Is this the first time you've been struggling to pay your mortgage?
If not, can you ask your lender for more time and/or a new arrangement?
Have you explored whether you qualify for any Government help?
Why arrears count
A solution for house repossession has to take account of your arrears. If you have arrears you may see no real way of paying them off. If your earnings don't allow you to pay them all off in one go you should speak to your lender about capitalising the arrears so they can be added to your mortgage. However this will leave you paying higher mortgage payments unless your lender will extend the length of your mortgage . If you're income has dropped or ceased this won't be a solution that's realistic for you.
Mortgage arrears by themselves won't prevent you from selling but the arrears normally have to paid off when the house is sold. This is important because many people underestimate how much has to be paid off when they sell.
Are you faced with higher mortgage payments? Interest rates may be at an all time low, so it's easy to forget that some mortgage holders are still paying high rates. If you have come off an attractive fixed rate it can be enough to add hundreds of pounds to your monthly mortgage payments.
If your mortgage or loan payments are now too high then your first priority should be to see if there is any way the payments can be reduced. Perhaps by increasing the length of time your mortgage runs for. This means you'll ultimately pay more, but if your priority is to find a solution for house repossession it's worth asking your lender.
If you're current lender won't help it may be worth trying to see if a specialist lender will. However the credit crunch has made it much harder for people with credit not at its best to switch mortgage companies. A specialist mortgage broker is your best chance of finding whether this is a solution for your house repossession.
Help may be closer than you think
Although you may be loathe to ask friends and family may allow you to borrow money from them. If this can buy you enough time to try selling with an estate agent then it's probably the best option. Especially if you can easily sell to clear the mortgage and any money you have borrowed.
Borrowing money to shore up your finances may only work short term unless your circumstances have a good chance of changing or the money is available long term.
The selling solution for house repossession
At the current time our solution for home repossession is only available to qualifying homeowners living in Sheffield, Edinburgh, Leeds or Manchester. To find out how we can help you call 0800 043 0669 or simply complete the form below.