When you take up a mortgage, there is always the slim possibility that you may fail to pay your lender promptly. Most lenders offer several options to mortgage owners before engaging the repossession procedure in a court of law. Among the last and most viable option is to sell the house quickly before repossession. In such a case, the buyer must be willing to pay cash within a very short time. The option of selling will help you get some money to start your life away from the house. Selling the house is better than waiting for the lender to repossess the house, leaving you without a house and broke.
Most likely, you will need to sell your house at a relatively cheaper than the market rate. The cheaper price will help find a buyer quickly before repossession. However, the price should be enough to recover the amount paid to the lender and leave some money to offset the mortgage balance and if possible. If you are lucky, you might sell the house at a profit and walk away with some money to invest after clearing with the lender.
When selling a house to avoid repossession, the first step is to notify the lender of your intentions so that you are given time to find a buyer. You should also get the Energy Performance Certificate (EPC) or find any other proof that will indicate the house is up for sale. The purpose of doing this is to ensure the process is transparent to the lender and all parties involved such as the estate agent or the solicitor. Most lenders will need to monitor the progress of the sale.
After notifying the relevant parties, the next step is to contract an estate agent to help find a cash buyer quickly. It may be challenging to find a buyer without involving an agent and your solicitor. Estate agents have a vast network of prospective buyers who are actively looking for a house. The agent also has good marketing networks to help in finding a buyer within the shortest time possible. Your solicitor will help with the transfer of ownership procedure to ensure everything as required by law to avoid future conflicts. Both the solicitor and the estate agent can get their commission after selling the house. Therefore, you do not have to worry about their fee upfront.
If you know friends, relatives, or workmates who may afford the house, it is proper to inform them. You might be lucky to find a buyer before the agent finds one. Finding a friendly buyer is the best option because you can always negotiate to stay in the house for a few months after the sale. It may be quite hectic to find a quick buyer who may need to move in immediately after the sale. You need time to look for another place and move out without having the new buyer breathing down your neck.
If you do not find a buyer quickly enough, you can consider approaching a quick-sale agent. These special estate agents offer to buy a house due for repossession within seven days only. The agent will stop the eviction process, purchase the house, help you clear with the lender and allow you to stay in the house for three months without paying the rent. You can find such agents online or with the help of either your solicitor or estate agent. The disadvantage of using such an agent is the low price they might quote for the house. Since they know you are desperate to find a buyer, they often buy the house at a throwaway price and later sell it at a profit.
When in the process of selling your house, it is wise to inform all prospective buyers that the house has a due mortgage and is up for repossession. The information will help remove any doubts about the need to pay cash for the house. If someone is ready to purchase the house, you can also negotiate when you are supposed to vacate the house after the sale. The new buyer can allow you to rent the house for a specified period or indefinitely. However, that can only happen in special cases. You should always have plans to vacate the house as soon as possible after sealing the sale deal.