With home repossessions reaching into the millions, all home-owning Brits have reason to be concerned. Soaring job losses and an equally dismal cost of living have made the dream of home ownership almost a curse. The housing market has been flooded with repossessed homes, driving prices down across the board. This has made it practically impossible to escape the mess even by selling out of the home. A home may be put on the market today, only to remain there without any interest for months at a time. The only way to sell a home in this atmosphere is at a seriously reduced price.
It is frighteningly easy how quickly a home can fall into repossessed status. With the first missed payment, the lender can put the owner on notice. With the second missed payment, the home can be formally entered into repossession. Once this has begun, the home-owner can quickly find that the property is no longer theirs. It is important to keep the lender informed when financial difficulties are encountered. Although it may not seem like it, many lenders are willing to work out an agreement if you inform them early enough of trouble.
With job losses coming all the more frequently, it is easy to see how a home-owner could very easily fall into arrears. With people all over living from pay-check to pay-check, it can take no time at all to go completely broke. In such a fragile economic environment, millions are in some stage of repossession, or at serious risk of facing repossession.
What can possibly be done in this situation?
The first step, as mentioned before, is to attempt a refinancing with the lender. Although many lenders are willing to go this route, others may not be as willing. If this is the case, there are other options out there. Attempting to sell the house on the open market could take months, during which the home-owner will most likely lapse into default.
To avoid this fate, some home-owners go the sell and rent back route. Sell & rent back companies will buy a property and subsequently rent it back to the original owner.
Be careful when you sell to rent. A sell and rent company technically has no obligation to actually rent the property to you, unless this agreement is placed in writing. Make certain that the agreement is clear, and placed formally in writing.