What Happens After Your House Is Repossessed?
One of the scariest thoughts for anyone is losing their home. Just the thought of it is enough to cause enormous amounts of stress so it is best to avoid this at all costs if possible. If you are in arrears with making mortgage payments, then your mortgage lender can apply for what is called an ‘order of possession’. This is usually sent when someone falls behind for between 90 to 180 days of mortgage payments.
You Lose Access to Your Property
Once a repossession order has been granted, the lender will appoint a bailiff to take possession of the house. Locks will be changed, and you will no longer be allowed access to the property. Utilities will be shut off and the whole experience is highly unpleasant. If you have been evicted, you may be declared homeless unless you have been able to organise alternative accommodation. If you have debt issues, which is usually the norm when a property is repossessed, then finding new accommodation could be challenging due to the requirement of a deposit, credit checks, and references. An alternative is to try and find temporary accommodation through your local authority.
How Is My House Sold After It Has Been Repossessed?
After your house has been repossessed, it is sold through an estate agent or via an auction. There is an obligation to sell at the highest possible price but finding the quickest route to recover the outstanding debt is also in the interest of the lender who has repossessed the property. For example, if the outstanding mortgage debt that you owe is £200,000 and a bank can sell the property for £205,000, then the bank is happy because they can recover the outstanding £200,000 after sale costs.
If an estate agent is used and time passes without the property being successfully sold, then a decision can be made to sell the property for less than the amount of debt outstanding. In the previous example, if the property is sold for £190,000, then you as the previous borrower would be liable for paying the outstanding sum. If you are having problems with paying this, then a plan could be made. But sometimes, it can result in someone being made bankrupt in order to write off outstanding debts.
It is not always as simple as that however and you do have some recourse. If you feel that your house has been sold under value, then you can bring a case against the lender for damages. The damages are usually the difference between what the property has been sold for and the actual market value of the property.
If the property is sold for a higher price and the sale proceeds are able to cover all related costs and the outstanding mortgage, then the surplus sum will be paid to you as the borrower. This of course is a far more desirable situation.
What Is The Fastest Way To Sell My House To Avoid Repossession?
The fastest way to sell a property to avoid repossession is to sell it to a cash buyer. This is because there is no requirement for a mortgage, which usually takes months to come through, and there is less chance of the sale falling through. Whereas an agreed sale to a mortgage buyer can take 3 to 4 months or even longer, a sale to a cash buyer can be completed within 4 to 6 weeks. This is the timeframe usually required if selling to a cash buyer through an estate agent. However, the problem with this is that you may be facing a repossession imminently and you don’t have 4 to 6 weeks to wait.
Serene Homes is what is known as a property cash buying company. More information can be found on our What Is A Cash Property Buyer page. Serene Homes is fully self-funded which means that there is no requirement to apply for a mortgage or find an outside buyer. And most importantly, the timeframe is much shorter. Serene Homes can complete on the purchase of a property within as little as 7 days and can even provide documentation confirming that the purchase is going through in order to stop repossession.
If you are facing repossession, it is important to contact Serene Homes as quickly as possible. Every day delayed takes you closer to your home being repossessed and time is of great importance. The good news is that the process of selling your home to Serene Homes is very straightforward. There are only three simple steps involved:
- Contact us to have an initial discussion and receive an online valuation of your property.
- Receive a cash offer for your property.
- Complete on the sale of your property with Serene Homes covering all legal fees.
When you contact Serene Homes, you can feel comfortable knowing that you will not be subjected to any fees. It is understood that facing repossession will usually be due to outstanding debts so the last thing you need is to be faced with more fees. Serene Homes covers all fees, and you are not obligated to sell to Serene Homes until an exchange of contracts has been made.
For more information on how we can help you stop the repossession, see our Stop House Repossession page.
Will My Debts Be Paid Off If I Sell To A Property Cash Buyer?
The first part of understanding whether your debts will be paid off is valuing your house. Following an initial online valuation as part of your first call with Serene Homes, a valuer will then visit your property to confirm the true value of your house. The cost of this valuation is covered by Serene Homes and you are free to pull out if you are not happy with the final price following the free valuation.
Once the valuation has been completed, you will receive a final cash offer for your property, allowing you to understand if this is enough money to cover your outstanding mortgage. If it is enough and you are happy, then Serene Homes will instruct solicitors, the fees of which are again covered, and completion of the sale of your house can be completed in as little as 7 days allowing you to avoid repossession.
Contact Serene Homes today and a member of the team will be able to assist you with calculating how much you need to sell your property for in order to avoid repossession. Assistance can also be given in helping you find somewhere else to live.
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