The credit crunch, which started in the USA, is affecting many things around the world, most notably for us is the effect it is having on the UK property market. In fact, the number of mortgage approvals has not recovered as many had hoped they would after falling drastically in October and November 2007.

Mortgage equity withdrawals have also suffered because of the credit crunch. This is because housing prices in the UK are falling and falling fast. Lending institutions are, therefore, becoming wary of lending money to homeowners whose homes are currently depreciating in value. For lenders it does not make financial sense and so homeowners looking for a mortgage equity withdrawal are often out of luck.

Forecast for 2008
The UK property market forecast for 2008 appears pretty bleak because buyers are unwilling to pay over the odds when prices are falling and are therefore biding their time until house prices have stabilized. The number of completed sales is anticipated to continue falling throughout the year simply because of this uncertainty and financial institutions tightening up on their lending criteria. As the demand falls so will house prices; with sellers becoming ever more desperate to attract offers. Their main options are to either wait it out in the hope that prices will start to rise again or to lower their asking prices in order to sell for whatever possible. Those individuals who aren’t in a position to wait for 6-12 months for the market to improve would benefit most from a Quick House Sale where they can sell their home quickly and easily, usually 3-5 weeks. Although selling properties for cash inevitably means it is sold at below market value, it would at least provide the cash required and the house is off their hands in no time.

House buyers, particularly first-time buyers, will benefit from these low property prices the most - that is if there are any house buyers who can actually get approved for a mortgage. Any property investor with cash available could also make some great deals on house purchases. However, since the market is tempestuous investors who have not fully researched the area in which they are purchasing should proceed conservatively to see where the market is heading.

Having seen massive rises in property prices over recent years because of the general lack of confidence that pensions will deliver the return on investment required for a comfortable retirement, the rapid contraction in funds available for mortgages just might make prices settle at more realistic levels. The volatility in the UK property market could create some major economic problems in sectors not directly associated with property simply through lack of confidence and a general contraction in the money markets. House prices could correct themselves sharply in the near future but only if lenders are willing to provide the funds at reasonable rates. For now everyone will have to take a wait and see approach but for the moment things do not look good.

People find themselves in financial trouble for many reasons.  It could be the loss of a job, illness, divorce or another life-changing event.  When these events occur they can significantly alter an individual’s ability to make their mortgage payments.  However, what individuals need most during times of uncertainty is the one thing that is certain and comforting - their home.  So, how can people overcome their financial problems and still remain in their home?  The answer is to sale and rent back.

What is Sale and Rent Back?

If you find yourself in this position you are probably wrestling with the serious problem of not being able to continue making mortgage payments whilst desperate to remain in your home.  It is also very likely you have thought, “I need to sell my house fast“, on numerous occasions.  Well, that is exactly what sale and rent back is all about.

This process involves you selling your home to a company that specializes in sale and rent back.  Then, the company will rent your home back to you, thus allowing you to stay in your home and avoid all the cost and upheaval of moving your family and belongings to another area or town altogether.  This really is the best option for many people because they can remain in their home and get the cash they need very quickly.  In addition, many people choose sale and rent back because it allows them to buy their home back in a certain period of time if their situation improves or else to rent indefinitely.  So, for those who need cash fast yet who don’t want to move then sale and rent back is the best option available.Perhaps the best aspect of the sale and rent back process is that it is completely confidential.  Your private affairs should remain private and when you take advantage of a sale and rent back offer your personal situation will stay that way unless you choose otherwise.

If you find yourself in a personal crisis and in need of cash then the sale and rent back solution is one that should be considered.  It may not be right for everyone, but it is a wonderful option to have.Want to find out how much Sell-My-House-Fast  would offer for your home?   If you want to find out if Sale & Rent Back is right for your current situation, why not complete the simple online quick quote form to see how we can provide you with the security you need.

A few years ago bankruptcy and house repossession were considered the domain of the feckless or business failures.  How times have changed!  The growing number of personal and business bankruptcies is testament to the change in our attitude to this.

The general acceptance of these predicaments doesn’t lessen the emotional pain and stress that this generates within a family.  The loss of a family home due to repossession and having to relocate to a new area that is unlikely to be as close to schools or work will have a deep impact on parents and children alike.

Unfortunately by the time your lender is talking about repossession, time is really beginning to run out.  So, how have you arrived at this precarious position?  Ignoring the red reminders isn’t going to make them go away.  Sleepless nights over a prolonged period worrying about money will affect your reasoning abilities, but disappearing into a bottle isn’t the solution either.  Blaming yourself or your partner isn’t going to resolve the problem, nor is arguing about whose fault it is.  What you have to do, and fast, is to try to find a solution or way out.

Having your property repossessed is just about the worst option for you.  Any equity you may have could be lost as the lender may well sell at auction or significantly below market value, simply to recoup the money they have lent.

1. Don’t ignore the warning letters.  Seek help from the Citizen’s Advice Bureau.  They should be able to put you in touch with a debt advisor.  CAB offers a free service - so don’t use any agency that requires upfront payment, you will just be compounding your problems with another debt.

2. Speak to your lender.  There are horror stories about how badly they treat defaulters, but the advice you will receive from just about everyone is to let them know of the situation.  You may be having problems because of a prolonged period of ill health; redundancy; steep rises in mortgage payments that you can no longer afford; personal difficulties, which leave you unable to work or other similar situations.  Lenders are required to be as helpful as possible but remember they are not providing social housing - they are running a business.

3. One possible solution is to sell your home and rent it back from a company like Sell-My-House-Fast.  There are many companies providing this sort of service and the rates offered range from 75-85% of your property’s current value, depending on who you use.  The beauty of this option is that any equity built up since you first purchased your home will be realised rather than lost.  You also get to stay in your existing home on a rental basis.  Sell-My-House-Fast offers a tenancy scheme that provides tenants with the peace of mind and security that should enable them to start afresh.  The existing mortgage is paid off, you get a lump sum of any remaining equity and those horrible repossession nightmares just disappear.

4. Another option is to try to sell your home and stay with family or friends or find somewhere to rent that is affordable.  You will need to factor in here the time it can take to sell your home on the open market, which can be anywhere from 3 months to a year.  Sell-My-House-Fast can complete within 3-5 weeks!

5. See if you can get housed by the local council.  Given the length of many council housing waiting lists I wouldn’t hold my breath!

Having your property repossessed isn’t the end of the story.  Repossession will affect your personal credit rating for years to come, which will make it even harder and more expensive to get back on the housing ladder.  Indemnity insurance will be increased and you will find it harder to get credit.

Above all, try as early as possible to recognise the warning signals and act on them.  Cut your expenditure on non-essentials to zero.  That means no cigarettes, no drink, no chocolate or other “little” things to make you feel better.  Believe me, all those “little” things add up to one huge hole in your budget.  Face up to the situation and try to find a way round it or seek advice on the best solution.

Want to find out how much Sell-My-House-Fast  would offer for your home?  If you want to find out if Sale & Rent Back is right for your current situation, why not complete the simple online quick quote form to see how we can stop your property being repossessed.

Moving home is stressful at the best of times. You’ve got your sights set on your new property but your buyer cannot purchase your home until their buyer completes.  Nightmare scenario, especially if you face the prospect of losing that dream home.What are your options?

• Wait it out in the hope that the chain won’t break
• Get an expensive bridging loan
• Don’t look for a new property until you’ve sold yours and stay with relatives or in rented accommodation until you find somewhere that it suitable
• Use a sell and rent back company like Sell-My-House-Fast to get the cash you need to purchase your new home with the added security of being able to rent until completion

This will:

• Save you money from the bridging loan
• Save you money for the cost of a Home Information Pack
• Speed up the sale and purchase process
• Give you control over the completion date
• Reduce your stress levels considerably

Want to find out how much Sell-My-House-Fast  would offer for your home?   If you want to find out if we can buy your home fast enough for your current situation, why not complete the simple online quick quote form to see how we can help mend that broken chain and get you moving.