Everyone who purchases a home worries about the possibility of having difficulty paying their mortgage (and possibly having their house repossessed) at some time throughout the 15 or 30 years of the loan. Many people worry that unemployment, illness, or an accident might render them unable to make their mortgage payments and unable to keep their house. Lenders are unwilling to negotiate with people who are behind on their payments but do not have an income due to an unforeseen event. Being unable to "catch up" on missed mortgage payments can eventually lead to the repossession of your home.
There is something you can do other than worry. If you are concerned that you might miss a mortgage payment, or if you are already behind in your payments and don't know whether you can catch up, there are things you can do. The situation will not get better on its own, so it is up to you to take steps to avoid foreclosure and its related financial consequences.
One option you can investigate is the possibility of selling your home to a company that specializes in paying cash for homes and then allowing the former owners to rent the home. The rental payment, lower than the mortgage, is often easier to manage, making this a good option for some people. With this rent-back option, the company will often offer you the option of buying back the home if your financial situation changes and you are able to afford it in the future. The price you would pay to re-purchase the home would be set at the time you sold it to the company and would not change (even if interest rates or the market changed). If you contact a company that specializes in these kinds of transactions, they will want to know what type of property you own, the current value of the home, and where it is located. Within 24 hours, you could have a verbal quote from the company regarding how much they would pay for the home. If you are interested in selling to the company, the home will be reassessed and the company will provide you with a written quote. The company can provide you with a great deal of information on how the process works and how to put a stop to court proceedings, if they have begun.
Working out a rent-back/sell-back arrangement can be easy and may be the difference between staying in your home and having to start all over again to find a place to live. Companies that offer these types of arrangements know that accidents, illnesses, and layoffs occur to good people, and that falling behind on your mortgage payments can happen through no fault of your own. Falling into arrears on your mortgage can be devastating, but there is a way to sell and then buy back your home. This process gives you the opportunity to regain control of your finances and then to buy back the home you already worked so hard to acquire.
One way of avoiding repossession due to mortgage arrears is to make a quick property sale, however usually the downside to this is having to move out anyway. If you take a look at the option that Oliver Wingrove, who is a real estate specialist, provides at sellhousefast.co.uk then you could get cash for your house and pay affordable monthly rent to remain in the property.
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