Selling Your Property to Pay The Arrears

If you aren’t able to clear your arrears, a court will probably give your lender permission to evict you from your home.

 Your lender will sell the property. If they don’t make enough from the sale to cover the money you owe on your mortgage, you will have to pay the shortfall

If you can't find any other way of clearing your arrears, it would be better to try and Sell the property YOURSELF, rather than wait to get evicted and let your mortgage lender sell it.

This is because trends consistently show that lenders get LOT less for property that you would, leaving you with a debt to pay., this is the reason why auction prices are often cheaper!

Selling the property yourself would give you a lump sum of money which you could use to pay off your mortgage, and which, if you have enough left over, you may also be able to use to pay off other debts.

Before you think about selling your property, you will need to:

• Find somewhere else to live. Please remember if you are applying for your local authority to be re-housed as homeless, they may consider you intentionally homeless and may not agree to re-house you!
• Get  a couple of validations to see whether the selling price will cover the mortgage and any arrears. If it doesn't, you will need to get permission from your lender to sell the property!
• You must remember the length of time needed to sell the property and all the fees involved, such as the legal fees estate agent fees etc. Until the property is sold, you will still be responsible for the mortgage payments and your arrears may go up!
• Think about taxation, such as stamp duty etc!