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Can you sell your house if you are in arrears?

Can you sell your house if you are in arrears?

If you’re a homeowner looking to sell a property as a means to pay off any outstanding debts and arrears, there are multiple solutions to consider. If there’s no other way of quickly increasing your income to cover costs that can soon become unmanageable, then plenty of homeowners opt to sell their homes to avoid repossession, pay off debts and free up more money. This enables those in financial trouble to relocate to a less expensive, more manageable property and get their financial situation back on track.

Here at House Buyer Bureau, we recognise that falling into arrears can sometimes be completely unavoidable, and we’re here to help homeowners get back on their feet. Whether you’ve experienced an unexpected redundancy that sees you falling short on your mortgage payments, a sudden illness that leaves you unable to work, or a recent separation that has left you out of pocket, regardless of the situation, there are a number of solutions available for you to consider. Keep reading as we provide the answers to a number of frequently asked questions regarding house payments, selling your property and mortgage repayments.


Can you sell your home if you are behind on mortgage repayments? 

To put it simply – yes, you can sell your home if you are behind with mortgage repayments. If you have found yourself in the unfortunate situation where you’re struggling to meet your payments, then selling your property can release your home equity and leave you with a large sum of money which can then be used to clear any arrears, as well as provide you with funds to put towards a more affordable property.

If you’ve fallen behind on too many payments and your house is set to be repossessed, then this will result in your property being put up for auction by your mortgage provider. Instead, it’s better to act quickly on this – as, with this method of selling, your lender may not receive enough money in exchange for your property, so you would still have to make up for the shortfall. By selling the property yourself, with a reputable cash house buyer such as House Buyer Bureau, you’re likely to receive a better price for your property, as well as avoid having a repossession registered against your name, which could affect any future credit applications you may make.

To avoid repossession and get on top of your arrears, it’s advised to act fast as soon as you enter financial difficulty. At House Buyer Bureau, we can help you sell your property within a timescale that suits your needs and sale can be finalised in as little as seven days – with quick cash access paying the balance straight into your bank account.


Can I skip a house payment?

You cannot skip a house payment. However, if you’re expecting a late house payment, it may seem like a disaster, but in most cases, this isn’t the end of the world. Many mortgage lenders will provide homeowners with a ‘grace period’ – the name given to a period of time after the house payment is due. This period tends to be anywhere between 10 to 15 days, where homeowners house payments aren’t registered as late. However, if your late or skipped house payment falls behind the initial grace period – a late fee will arise. Depending on your mortgage agreement, this can fall anywhere between around 5 to 10% of your monthly repayment. Whilst this may not seem like a significant increase, late fees and missed payments can quickly become unmanageable. If you think you will be late with your payment, then you should get in touch with your lender as soon as you can to find out more about any grace period you may be eligible for.


Can you sell your house back to the bank?

If you’re experiencing financial pressure and mortgage repayments are starting to become unmanageable for whatever reason, then homeowners could consider selling their property back to the bank before it is repossessed – however, this is not always advised. As your mortgage loan is a guaranteed financial transaction between you and the bank, legally – the bank can repossess your property and sell it by default on your payment obligations, which could leave you with little, or no funds. If the bank looks to sell your property quickly and receives a lower than average price for it, they may still continue to pursue you to pay the arrears you owe. After all, it’s the mortgage that your bank wants, not your property, and the mortgage will still exist until it is fully paid off.

Banks may also add extra charges, that could see your debt amount rise. Fees such as solicitor’s fees, sale commissions, and other expenses could incur and you could still be liable to cover all of these extra costs. If the bank puts your property up for sale and it isn’t a quick straight-forward sale, which it rarely is, homeowners will still be responsible for making mortgage payments for as long as the property stays on the market.

A bank may also provide you  with the chance to declare voluntary repossession, if you can no longer afford to make mortgage repayments. This involves writing a formal letter, directed to the bank, voluntarily declaring you can’t pay any longer – and are giving up the property. This will involve the same process of selling, where banks, or mortgage companies, will take your property to market and sell your home, typically, for much less than it is estimated. If this occurs, the lower the final price, the greater the potential remaining arrears and the longer it will take for homeowners to clear their debts. This can also take a toll on your credit score, which then causes complications when it comes to receiving financing options for a new property.

Regardless of your current financial issues, credit score or whatever the motivation behind looking to sell, House Buyer Bureau offer homeowners a professional, quick and hassle-free way to sell your property, for a fair, reasonable price, with no hidden agency fees and costs.


Selling your house with House Buyer Bureau. 

The best way to tackle outstanding arrears, manage missed mortgage payments and look to solving your financial issues, is to tackle the issue as quickly as possible. Avoidance could lead to more missed payments, more debt and more problems in the future. Selling your home with a reputable, established cash home buyer like House Buyer Bureau allows you to solve your situation quickly and efficiently. Offering far less fuss and fees than using a traditional estate agent, selling a property with House Buyer Bureau is a streamlined process. By selling with us, homeowners don’t have to face the hassle of property viewings, having photos of their homes taken and all typical steps associated with selling a property. Instead, simply call our friendly team of house buying experts and let us offer our advice and expertise to help you get out of your mortgage arrears. With a timescale to complete in as little as seven days and a promise to purchase any property – regardless of its existing condition – homeowners have peace of mind that we will offer the fairest price and pay in cash. Talk to one of our friendly experts today at House Buyer Bureau and receive an initial cash offer.