When you are faced with a situation where your mortgage lender wants their money back and you are not in a position to pay, you will be faced with two possible scenarios. The first one is of course to wait for the lender to take up the duty of repossessing the house or alternatively you take it up upon yourself to sell it and pay your arrears. Whenever you are faced with a deadline you will minimise your stress levels if you opt to sell your house for quick cash and in the shortest time possible. The reason is that when you sell a house using the traditional methods through property agents you are likely to take such a long time you will get caught up with any circumstances you were trying to escape in the first place. It even becomes worse if the home is sold through an auction because what you get will be much lower than its value.
When you do it on your own, you will most likely go to a cash buyer who will buy it in the shortest time possible. The only downside of this process is you will be paid up to 30-40% lower than the market value. But looking at the positive aspects of the whole picture, many people have opted to go this direction. You will also be certain how much money you are going to receive and therefore know if it will take care of the arrears that are troubling you. One other thing you will avoid when you get a cash buyer yourself is the chain that is likely to be there when dealing with a property agent who must get a buyer who knows where they will sell the house in the first place. You will end up burning up crucial time which may end up being months in some cases. You can imagine what happens if one person in the chain decides they are not going on with the deal – disaster.
Selling the house on your own through a quick buyer also has another advantage; you avoid paying all those fees that go with buying and selling of property. Your buyer in the case of a quick sale will take care of all valuation as well as legal fees and in most of the cases; you can easily negotiate a sell and rent back arrangement. This becomes a win win situation where you get relief by getting money to pay back the lender and the buyer buys a property at a great discount. The same buyer now turns out to become your landlord and since they get a ready tenant, they will not spend time advertising and in return you will avoid the stress and hassles of relocating. But then the greatest relief you will get is regarding your credit portfolio.
In the contemporary market you may have hard time selling a house that seems to have seen better days for want of minor repairs and some little re-decorating. The same may not necessarily be the case in the sell and rent back scheme. Your buyer will do a valuation and since they will be buying the house at a good discount and you will remain to be the tenant for some time, there will always be time to do the attendant repairs. When time is of essence you are better off looking for a cash buyer yourself and dealing with them directly as opposed to letting your lender take care of those details, you stand to gain much more in the process and at the end of the day, there is the possibility that you may end up buying the same house again when you are back on your feet.