If you are falling into arrears on your mortgage payments you will need to act quickly to avoid repossession.
It is best to speak to your mortgage lender to see if you can agree an affordable repayment plan. If they have already started Court action against you, you can still negotiate with them, and its best to try as you may reach an agreement before it reaches Court as you will incur more costs and get deeper into debt.
Debt advisers are also helpful as they can provide guidance and advice and may be able to help you avoid repossession.
How re-possession affects your credit score
Having a repossession on your credit report will severely negatively impact your ability to get credit. A re-possession can stay on your credit history for up to 7 years making it difficult to get loans, mortgages and credit cards in the future.
The amount your credit score will drop does depend on your credit situation, but what it is telling future lenders is that you can’t be trusted to pay back what you owe, and as a result they are less likely to approve new credit applications.
If you haven’t been able to reach an agreement with your mortgage lender, and can’t pay what you owe, then sometimes the best solution is to sell your house quickly to a cash buyer.
How is selling your house quickly going to help?
Selling your house quickly to a cash buyer will stop re-possession. It will also avoid you getting a bad credit rating and a repossession registry entry.
If you choose instead to put your house on the open market, it may take months to sell, and during that time, despite your good intentions of trying to sell your home, you may still end up having your home re-possessed if you continue to miss payments on your mortgage.
However, if you sell your home immediately to a cash buyer, you can cover the costs of your mortgage and arrears and you can then begin again without severely impacting your credit history.
This puts you in a much stronger position to be able to rebuild your life and get yourself back on track.
Sell now, avoid repossession and move on with your life
Please get in touch with Mark Lloyd at Sell My House Quickly Basingstoke if you have any questions, or you want to request a competitive cash offer to buy your property.
Call: 0800 465373
Text/Whats app: 07703 189658
Or simply complete the enquiry form and we will respond by return.