Are you struggling with your mortgage repayments? Are you finding it hard to keep up with your credit card debt repayments? If you answered yes, then there’s a strong possibility that repossession could be on the cards.
Repossession means that the home you live in or own will become the property of the bank or lender and they’ll sell it at a public auction for a price determined by them. So, to avoid this from happening, you may have to quickly sell your home and stop house repossession.
This article will help you with some of the important reasons why you should sell your house before repossession takes place.
1. To Prevent Bankruptcy
It’s a sad truth that homeowners who fail to sell their homes before repossession can end up in bankruptcy. This is because your property could have been undervalued by the lender. So, when a homeowner is in serious debt and can’t repay their mortgage, bankruptcy could be the only option left to them. Selling quickly can help you avoid ending up like this.
2. To Stop Repossession In Its Tracks
If the repo man is coming to take back your property, you need to do something about it fast. The longer you leave it, the more likely it is that they’ll find a way of getting into your property.
If you’ve fallen behind with the mortgage payments, it’s not uncommon for repossession companies to take advantage of this and offer to buy your house from you—but only if they manage to find a way in. This is bad news if you want to keep hold of your property since it means they’re free to come in whenever they please and begin the eviction process. If you’ve fallen behind with payments, it’s a good idea to take stock of the situation and sell the house quickly.
3. To Get A Much Higher Valuation
If you’ve been trying to sell your house for quite some time and haven’t had any luck, the reason may be because there isn’t a high demand in the area. This can be frustrating and stressful, but if you sell before repossession, then you’ll be able to secure a much higher valuation for your home rather than selling it quickly before it goes into foreclosure.
Furthermore, since you’re not under pressure from creditors and no longer facing eviction, you may find that buyers are willing to pay more to guarantee they get their hands on such an attractive property.
4. To Avoid Hefty Tax Charges
It’s important to understand that if you don’t sell quickly, then you could be liable for capital gains tax (CGT) on any profit that you make when selling your house. This is because banks treat repossessed houses as though they’re sold at market value, and any profit made by an individual within a few years of purchasing their house must be added to their taxable income. This means there could be hefty charges for not selling fast enough.
5. To Avoid Eviction Stress
A repo man is well known for being heavy-handed when it comes to evicting homeowners. After all, they’re just doing their job and it isn’t exactly pleasant work. If you think that the eviction process is stressful, then think about how it’ll affect your family to see their home being boarded up and taken away.
If you need to sell quickly before repossession, this could even help speed the process along since banks don’t want to damage their property. Therefore, you could sell your house fast and save yourself from stress by making sensible decisions.
6. To Make A Fresh Start
It’s not uncommon for homeowners to fall behind with their mortgage payments due to outside pressure. A death in the family, divorce, or unemployment is just some of the events that can quickly cause people to be unable to meet mounting debts, which is when repossession may occur. However, if you can find a buyer who’s willing to purchase your house quickly before repossession, then this helps put the past behind you and allow you to move on. You can start anew with a fresh list of prospects and hopefully avoid falling into hardship like this again in the future.
If any of these reasons resonate with you, it’s clear that there are several reasons for finding a buyer who offers cash in hand. This means you’ll make a clean break from horrible memories associated with the home and the bank. You’ll be able to start over with a clean slate and build your life around new surroundings.