Is your property being sold by your lender at below market value?

We are hearing from homeowners that have received a repossession order, that their home is being sold at below market value and they are confused as to why this is.

Unfortunately in the eyes of your lender, this is purely a business decision and nothing personal. Your lender is in the business of lending money and not selling homes, so their business model tends to move on quickly when repossession has occurred, so that they can get on with what they do best, lending money. As long as the lender can recoup what they lent you, they are not interested in what your house sells for, which means that your equity in your home (if you have any) is totally lost.

If your lender has been granted a repossession order, then this means they have the right to take control of your home and sell it as quickly as possible. This means that they can accept whatever offer comes their way, typically around 25% less below the market value. This, of course, is not in your best interest as if your home is sold for less than you owe, then you are still liable for the shortfall, which could end up being years of paying off debt to your lender.

Avoiding getting to this stage is the obvious solution, but it is easier said than done as people in general can suffer stress and anxiety when it comes to dealing with their debt problems. Seeking help from professionals can help relieve some of the stress and anxiety, as they will listen to your situation, map out a plan and help you put the plan into motion.

Talking to your lender the moment you fall into arrears is by far the best thing to do, and if not you, seek someone that can talk on your behalf. Realising your debt and looking at managing it is another step to put to your lender, as this will signal to them that you are taking the situation you find yourself in seriously. Again, there are organisations and professionals out there that can help you with this by looking into your finances, seeing what you can afford and putting it to your lender in the form of a payment plan.

If all else fails, then you do have the option of selling and it may be a really hard decision to make, but it could be the best way for you to move forward with your life with your credit score and dignity intact. Again, there are professionals out there that can help you find the best way to sell your house and keep some if not all the equity you have gained, rather than letting your lender throw it away.

Whatever stage in the repossession process you are in, there are options you can take that can remove the stress and anxiety you may be feeling; however, once a repossession order has been granted, then your options have been cut dramatically.

If you are facing repossession and need to talk to someone, book a no obligation, free consultation with us at Repossession Help. We can look at your situation, discuss options and leave you to make a decision on which option you feel best suits you.