Sell Home Fast: Is This the Only Option When Facing Repossession?

No one wants to face repossession. Certainly, this is not the plan when you buy your home. You may want to be closer to work, raise a family, build relationships in the community, save money in a “starter” house while saving for your dream home… Whatever the initial goal, reality has a way of rearing its ugly head. Divorce. Job loss. Medical needs. A change in your life and financial circumstances… All of these factors, and many more, can cause us to fall behind on our mortgages. If unable to pay, lenders may initiate repossession actions.

Not only do you live with the possibility of losing your home (and a great deal of your security), you risk a lasting stain on your credit report. Worse, your debt problems are not magically over. You still owe the balance on your mortgage, and this may only exacerbate an already difficult situation.

When you find yourself in this possession, is the best option a sell home fast solution?

Sell Home Fast: How It Can Work for You 

It is important to know that repossession is the last resort for lenders. Legally, they are required to take every reasonable step to ensure that you can keep possession of your home. This includes working with you to develop an alternative payment plan, roll your arrears into your loan total, change your payment dates or offer you a payment holiday (i.e. a period in which you do not have to pay. Interest will continue to accrue).  They also must provide you with information in regards to resources you can access to help receive financial advice.

Further, though, they don’t really want your home. To be frank, they would much rather have your money. Repossessing a home means that they are left with trying to sell it to recoup their loss, and this can be difficult. In the meantime, each day that house sits in wait for a buyer, they lose profitability.

That said, it can happen. And it is happening more now that protections afforded by the Coronavirus Act have largely aged out. We are experiencing an uptick in repossession actions in the aftermath of the pandemic – but unfortunately, this is unbelievably poor timing as many are struggling with health issues, the cost of care, job loss and, of course, inflation.

If you sell home fast, however, you can avoid a lot of the financial – and emotional – stress that accompanies repossession. Under the law, the lender must allow you a “reasonable” period of time to sell your house. You may remain in the home as you do so.

But “reasonable” for a lender is not always realistic given the market. You may only have a month or, at best two, to complete a sale. Given that the average house sale takes four to six months (or longer), this can be just one disappointment.

Working with a Property Buyer to Sell Home Fast 

In this case, not only is money an issue – so is time. A cash property buyer moves on your time frame. For example, when you request an offer, you will receive an offer in principle within 24 hours. From there, it moves even more quickly.

You can expect to complete a sale within about two weeks. That certainly fits the definition of “reasonable” set by your lender. But more importantly, it meets your own needs. You can part ways with a home that has become a source of stress and a financial burden.

A fast cash property buyer typically offers between 75 per cent and 85 per cent of total market value. If the math adds up for you, this can be an effective way to remove yourself from a very difficult situation.

Is a sell home fast situation the only option you have when facing repossession? No. You can talk to your lender, work to improve your financial situation, pay as much as you can on your mortgage and towards your arrears and/or speak to a debt adviser. These steps may be too little too late, unfortunately. But it is important to see what you can do before you sell.

Selling your home may not be your only option, but it can be your best one.