Advice please.. has anyone sold heir property to those companies who buy before it goes to repossession

[Stressedoutgirl45]

Have some arrears on Mortgage. I’m not working, and don’t plan on going back to work just yet and could afford childcare at present. Plus I want to be home with my LO.
Mortgage lender want to start repossession. I can’t clear arrears right now so was thinking about these companies who buy your property within 7 days.

Has anyone had experience with this?

Thanks

Sorry no experience but imagine you will be ripped off by them. They are not there to help you but to get your house at a rock bottom price so they can make a huge profit from your misfortune.

I know you want to be there for your little one but surely the most important thing is to go back to work, enter into a repayment plan and try and keep your home.

Have you spoken to a debt advice charity (that won't try and profit from your misfortune)?

Speak to your lender, if you haven't already done so. As a pp says, get debt advice. These companies will rip you off big time. Your house is an important asset, do everything you can to keep hold of it, including going back to work. Besides, if you leave you will have to rent somewhere presumably, which will require a considerable outlay and will use up your capital very quickly.

Thanks for your replies.

I have spoken to debt charity and mortgage lender. I was on a payment plan but I was suddenly made redundant during my pregnancy.

The arrears on Mortgage is a massive amount, and I had asked to rent out flat short term whilst me and the LO live with my family nearby. I had planned on going back to work summer or early autumn the latest, Mortgage lender declined my suggestion.
I’m on Benefits, doubt I could make a payment plan now.
It is now handed over to a Solicitor.
My thoughts are with Repossession, I’ll end up with nothing at the end, I need something for my LO future, whereas with this company I should have a little money left.

My flat has been valued at £315,000, the company have offered £250,000 .
I know I am very unsure about these types of companies, it does sound too good to be true. That’s why I was wondering if anyone on here had been through it and come out the other side ok.

Thanks again

What is your mortgage debt? You need to know what the total settlement figure is from the mortgage company.

You need proper advice, immediately, from a qualified professional who has a holistic overview of your whole situation. Speak to Citizens Advice. Those companies can be a terrible ripoff, you could lose thousands if you aren't careful. There may be a much better way forward.

A man I worked with used Home Buyer Bureau to buy his 3 bedroomed flat. He was retiring and wanted enough to pay off his mortgage and capital to buy a retirement property. I don't know the exact figures but he got two thirds of the value of his property, which left him enough to get the one bed retirement flat, and is now mortgage free and quite comfortable. But he did get independent advice before he went ahead, and if he had put his flat on the open market he'd have got a lot more for it.

Sorry , my second post should read The arrears on Mortgage on ISN’T a massive amount. It is just over £6,000.

I’m going to speak to CAB later this morning.

Also, it’s Shared Ownership, I’m speaking to HA today too.

Also, I will speak directly to Mortgage Lender Solicitors (have only emailed)

I did have some misleading advice from mortgage lender a few months ago and I did put compliant in. It was looked into and acknowledged that I was given inappropriate advice by some staff, so I am now contacting Financial Ombudsman.

Last night was reading up repossession on a financial savings site and don’t feel I was offered all options of covering repayments.

I would really like opportunity to sell on Open market, but I don’t have time on my side. A flat in the block recently took over a year to sell.

I think I’m a bit calmer now than a few days ago, I went into panic/frightened mode.
I’m also seeking legal advice, my friend was saying I might get legal aid.

Thanks again for all your advice.
For now, I’ll put that Company on hold.

I used to know someone who owned such a company and he was the most crooked nasty evil shit. Sometimes the people were so far in arrears and with so little equity, and we’re offered so little compared to value, that they ended up paying him to take their house. He would then offer to rent them back at not much less than the mortgage payments were.

Please use all other options before considering this

You can’t sell a shared ownership property to this company. You have to sell it to another person who is waiting for a shared ownership property and has been vetted.

They can be a solution when you need to sell quick.
In your situation. You need to speak to the HA and see what terms they have for sale, they may even help find someone wanting to buy a shared ownership.
Your mortgage company will need to consider your requests but do not need to offer them.
I would suggest speaking to CAB or stepchange with your income and expenditure details for their guidance and support.
The lender will be looking for a repayment arrangement and if that would be too much you need to ask for reduced payments or a temp switch to interest only if you are currently on a repayment basis. They need to consider and will be more likely to agree if you have shown you have tried different options.
If you want to sell get it on the market now and provide evidence of this to your lender.

In some situations where the homeowner can't bring the account up to date then selling quick can be the best option. You reduce the increase in debt, charges and impact on your credit file.
Good luck :)

Thanks again for all your advice & Support.

Spoken with HA, the say because my percentage is high it will be difficult to find buyer quickly. They recommend and support I sell on open market, and then pay them back their percentage. They also can lease with mortgage lender Solicitors and plan to do so.
They’ve also suggested contacting Estate Agents to see if cash buyers would buy property as it has short remaining years left on lease. But I could also start the lease extension process (obviously will be better for me).

Have not managed to speak to anyone at CABas they were continually busy yesterday, so will try again today.

The Solicitors have said they have payment options to go through with me. They need my full income and expenditure, which is nearly complete, until I know about my Universal Credit claim it’s different to give a figure.

Depending on how long Solicitors give me in terms of months, as soon as I can get property on market things are set in motion.

I’m hopefully selling my property next week. Spoke with Estate Agents, they have cash buyers interested and have viewings next week.
Obviously the flat will be sold at a low price but to be honest I’m just wantvall this to be over, the stress of it has taken its toll.

Gosh. 6k (in the grand scheme of things) isn't a huge amount of arrears is it? I would echo what pp have said and go and get some independent advice. Could you be panicking and finding a solution that isn't ideal just to be free of the stress (I do this a lot!)

Is there a reason that you can't go back to work now that LO is here - or was it the job you were made redundant from on maternity [can they do that] ? I know childcare can be expensive but longer term a roof over your head is quite important for a child. Well anyone really. Will you have somewhere else to live? Private renting can be just as much (or more) than a mortgage payment every month. Then there's the deposit, refereeing fees, credit check.

Just please think carefully before you jump ship OP and try and speak to CAB. They may have an idea that hasn't been thought about.

Hope everything works out for you

Once it's sold where do you plan to live?

Plus I want to be home with my LO.

That’s not a luxury you have. 6 grand is almost nothing if you own a £350,000 flat. You need proper advice.

How high is your percentage of ownership? What the HA told you doesn't add up.. you can't sell the house on the open market and then repay the HA their share, that share isn't yours to sell. Buyer would buy your share under Shared ownership agreement like everyone else- cash buyers wouldn't qualify. And then they would have to buy out HA seperatly.
This is seems very odd. Why not just go back to work.. I know it's a harsh reality to want to be a SAHM and not be able to afford it but you're willing to lose your home just so you can stay at home a bit longer?

@Bathroomhell17 you sort of can actually - if you own a high % often the best way to sell is to sell 100% and simultaneously staircase up to 100%.

So on completion you buy the remaining eg 10% from HA and sell 100% to your buyer with no restrictions on who.

The idea of SO was that people would staircase up and out and the money would come back in for future investment. HA don’t want to be sitting on 10% of a property.

However I agree with other people £6k is nothing really, shocked you’re prepared to loose your home over it! Why on earth wouldn’t you just go back to work?

Your baby won’t remember this at all, but in 10 years time they willl appreciate the secure home you’ve provided...