Selling your Home to offset Mortgage Debt
If you are in debt, it is likely that you know what the threats of repossession and bankruptcy mean to your peace of mind the future of your family. Thus, if you are unable to pay your mortgage debt, then you may want to think of selling your property for a quick cash sale.
You can then use the proceeds to clear your mortgage and use the left over to offset other debts. Therefore, do not be quick to hand the keys back to your mortgage lender and wait for eviction. Remember, that eviction is not a solution to your debt problem.
If anything, you will have to wait until the house is sold during which you will still be required to make mortgage payments, pay for the buildings insurance as well as other related costs.
Besides, it is likely that when your mortgage lender takes to selling the property, they will get a lot less than you would if you sold it. Consequently, this would mean that the sale would not fetch much money to cover your debt.
Remember, lenders tend to sell property at auctions where the price is far much lower leaving you in more trouble. Therefore, you will do well to talk to your lender about your intention to sell the house due to your financial situation.
Ready Steady Sell are a UK quick house sale agency and their advice is to work out a strategic way of disposing your property as well as your debt. But first, you need to work out the value of your property and from it determine the asking price and possible selling price.
This way, you can be able to tell if the proceeds from the sale will be adequate to repay what you owe your mortgage lender because if it is not then it means you must make up for the difference. In most case, mortgage lenders will want to understand your situation and help you work out a plan to repay what you owe them.
Thus, you need to seek their permission first. Remember, until you sell your property, you will still be responsible for the payment of your mortgage payments. Remember, if you do not have solid plan in mind for avoid sinking further into debt.
If you are considering selling your house to get out of debt, you also must take into account the duration it will take to sale and the cost implications such as legal fees and estate agent fees.
In the event that you think you need to claim benefits or you are already making claims then you need to ensure you get advice from the local Citizens Advice Bureau before you sell your house to offset your debts.
Well, it is important to think through the options that are available at your disposal when you are facing an imminent repossession. This way, you can work out a plan to stop repossession with your mortgage lender.
Selling your house may not be the best decision but it is definitely better than being declared bankrupt that will result in the loss of your property and loss of financial freedom. Besides, the effects of bankruptcy could last up to 15 years.