Could Selling Your Home Stop Your House Repossession?

This article is designed to discuss the house repossession process and outline the process of selling your house to stop your home being repossessed.
House repossession is shrouded in negative press coverage and is seen by many as the worst possible thing that could happen to them. Studies have proven that having your house repossessed not only has severe impacts on your future ability to get loans and mortgages but, it has been linked to psychological problems such as depression. This article aims to inform people about the house repossession process and offer a solution to stop house repossession.
Thousands of people face repossession
You are not alone If you are currently facing repossession, recently, the accelerating housing market has resulted in more people taking out large loans and mortgages in order to gain a foothold on the housing market. Others have been refinancing their properties on to low cost mortgages to allow them to buy luxuries they have always wanted. Such low cost mortgages have dramatically reduced due to the recent rises in interest rates. This has led many people facing the 'shock' of higher mortgage payments once their cheap rate mortgage ends. This has left tens of thousands of individuals, couples and families walking a financial tightrope. Should they lose their job or, face some unexpected drop in income they are often forced to default on their loan commitments which can ultimately lead to repossession.
Should you find yourself in this situation you must not bury your head in the sand, there are some important facts you should remember:
According to government figures house repossessions are on the increase - you are not alone.
Almost 50% of house repossession orders can be suspended if you have the know-how.
You have the right not to be repossessed.
You can usually prevent arrears leading to repossession.
Communicate with your lenders
If you are facing repossession it is very important you understand the house repossession process. Generally, it takes between 3 and 6 months of non payment before you will be issued with a repossession order and summoned to appear in court. Ideally, you should begin to communicate with your lenders to explain your current situation immediately. If you have recently lost your job, got divorced, had a long period out of work due to illness, explain this to your lender.
If your situation is likely to be temporary and you will soon receive sufficient income to honour your loan and mortgage commitments your lender is likely to agree to you paying off your arrears once you return to earning income. However, if you make this agreement and then fail to honour it, your lender will be unlikely to offer you such an option in the future.
Could selling your house stop your repossession?
If you will not earn enough to make the repayments and pay off your arrears one option is to sell your house. Selling your house will only work if you have sufficient equity to pay off your mortgage and loans. If you do not have sufficient equity, it is likely that unless you can find sufficient income to repay the arrears, you will have your house repossessed.
If you do have sufficient equity within your home there are two options to selling your house:
You can sell it via the expensive and traditional route. Or,
You can sell to a company that specialises in quick sales and can let you rent your home back, allowing you to stay in your home - should you want to.
Such companies can help you up to the day before your repossession hearing but, try not to leave it this late. However, these companies can only help you if your debt is between 70% and 90% of the value of your home. The advantages of these companies are:
You are assured a quick and often guaranteed sale, something which is not afforded by the traditional route. This is ideal if you have a short amount of time to settle your debts and will allow you to move on with your life free from the stress and worry of being in debt.
Often selling to such a company as K&G Lettings Limited or others can mean you also release some equity that allows you to start afresh.
A further benefit of selling to such a company is that after a few short months/years your credit would be repaired to s subtle point for you to get another mortgage, something that would take many yeas if you were repossessed.
Conclusions
This article is designed to discuss the repossession process and how selling your home could stop your house repossession. It is clear that there are advantages to selling your house and stopping your repossession and that there are two ways in which to do so: the traditional method and the quick sale method. Should you choose to sell your house to stop your repossession you should always choose a method that suits your situation.
Disclaimer
This is a brief introduction to the concept of the repossession and quick house sale process and is designed to act as a guide. Please ensure that you seek professional advice before making any decision which involves selling your home.
About the author
Gary Wainman is the principle letting and property consultant for K&G Lettings Limited (kandglettings.co.uk) who specialise in offering the quick sale, rent back and stop repossession services across the UK, especially within in Hull and the East Riding of Yorkshire.
K&G Lettings Limited
K&G Lettings Stop repossession service
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