How To Sell Your House To Stop Repossession (Best Option?)

Stop Home Repossession

Your home is likely to sell for a higher price before repossession. It will usually sell for less if it is sold by the lender after repossession.
England.Shelter.org.uk

Man, if you’re reading this, the odds are you’re going through a brutal time. My sincere sympathies, I know how it is!

Given the probable circumstances, I want to pass on a potential solution, which I’m hoping will be useful (perhaps even life-saving), as efficiently as possible and bypass all the fluff (because I’m sure the last thing you need right now).

I’m going to presume the following:

  • You’re in an absolute bind, and ultimately you want to potentially explore options on how to sell your house quickly before getting repossessed (I’ll explain why this might be a better option than getting repossessed in this blog post);
  • you’ve spoken to your lender and/or you’ve taken financial advice, and the reality is, you’re running out of time;
  • you’ve exhausted all your options and it’s boiled down to getting repossessed or selling;
  • you know how repossessions more or less work.

I hear you loud and clear!

I’m not going to beat around the bush: using a “Cash House Buyer” Company is probably your best option

Yes, you can put your property on the traditional open market in an attempt to sell before repossession, but that could be a slow and tedious process. Ultimately, it could take several months (if you’re lucky, that is). Not ideal! In most cases, when time is of the essence, selling on the open market is not a practical solution. However, of course, selling on the open market to get the best possible price would be the best option if it’s feasible.

A professional Cash House Buyer Company, also commonly referred to as a “We Buy Any House” company, will do what it says on the tin: buy any house for cash, and they are able to complete in as little as 7 days. Yes, complete, meaning the money will be in your bank account.

Cash buyer companies have gained immense popularity over the recent years, not just with sellers in a pickle, but also regular homeowners and professional investors/landlords that are in the market for a quick hassle-free sale. However, admittedly, they are particularly desirable among those in a bind, for obvious reasons. For example:

Advantages of selling to a Cash House Buyer Company to stop repossession

There are plenty of reputable Cash House Buyer Companies scattered around the UK (but also plenty of bad actors, so I’ll recommend a few of the good eggs further down), and they have been a saving grace for many facing repossession, because they’re able to provide the following service:

  • Purchase property super quickly (like I said, in as little as 7 days);
  • cover all legal fees;
  • liaise with the lender directly and prevent the repossession;
  • manage all paperwork and surveys;
  • purchase any property in any condition
  • help homeowners clear debts and generally resolve financial issues quickly.

What’s the catch? Yes, there is one, but a predictable one! You’ll be expected to sell for approx. 15% below market value of the property (i.e. you should expect an offer anywhere between 75-85% of the market value). Yes, you’ll need to take a hit, but it’s likely that it won’t be as painful as getting repossessed…

Selling to a cash buying Company Vs Repossession

As my opening statement said, your home is likely to sell for a higher price before repossession, which means it will usually sell for less if it is sold by the lender after repossession. In many cases, you’re likely to come out better off even after selling below market value to a cash buyer. But that’s something you will need to determine with your own research.

I’m going to cover a few more quick points:

If you get repossessed…

  • The lender will often incur a lot of costs which ultimately, they take from the sale proceeds of the final sale amount. This can amount to about £17,000 when you factor in asset management fees, maintenance costs, legal fees etc. That’s money that will be taken from the sale of your property.
  • If there is any money left over the vendor will not receive this until about 12 months later once everything is finalised. Needless to say, not great if money is tight (which is likely the case) and you are trying to move on to a new chapter.

If you sell to a Cash House Buyer Company…

  • Firstly, they can stop the repossession, because most lenders just want to see the “homeowner taking action”. So a Cash House Buyer company that knows what they are doing will engage with the lender’s solicitor and hold off any repossessions whilst it gives you breathing space to find a new home. This means you will have access to the cash from the sale straightaway and won’t be subject to the hefty repossession costs.
  • You will be able to move out when it suits you with the money in your bank account, rather than being told to leave without any money.

There are clear advantages of using a Cash House Buyer Company to achieve a quick sale before being repossessed. However, I do want to emphasise how critical it is to only use a reputable company if you plan on exploring this route, because the “cash buyer” industry is plagued with bad actors, and that’s largely because the industry is unregulated! If you want to learn more about how the industry works, I invite you to read my guide on Cash House Buyer Companies.

My recommended Cash House Buyer Company to prevent Repossessions!

*raises hand* I certainly have to disclose that I do have an affiliate partnership with my recommended supplier, MyHomeBuyers.com, but I also want you to rest assured that they are only a partner because I think they’re among the best in the business. I explain why in my complete review of MyHomebuyers.com. I know for a fact they deal with many repossession cases, so know exactly how to manage the process.

With all sincerity, I believe you will be in completely safe and honest hands with them. Even if you simply want to talk to an expert to explore your options, no strings attached, they would be me my recommendation:

ServiceRatingFeaturesOffers (up to)
Rating

4.7

TrustPilot Reviews
Features

  • Guarantee to beat any genuine cash offer
  • Members of The National Association of Property Buyers, members of The Property Ombudsman and Trading Standards
  • Any property, any condition considered (England or Wales)
  • Cash offer within 24 hours, Sales completed in as little as 7 days
  • Free Legal fees included, No agent costs or hidden fees
  • Guaranteed sale
  • Direct buyer, with no middlemen
Offers (up to)
80-85%of Market Value
Get cash offer

That said, they are not the only reputable company in the industry, I have a few more highly reputable Cash House Buyer Companies listed here, but in case, I always recommend for everyone to do their own due diligence, moreover, put out the feelers and talk to a few companies. You’re likely to get varying cash offers, which will likely sway your decision (although, purely focusing on the best cash offer is not a hill I’d be willing to die on when dealing with cash buying companies).

Hope that’s been useful, or at least, given you an option to explore before making your decision.

Needless to say, best of luck xoxo

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