Facing Repossession

Being in debt can be a horrible feeling. It can become all consuming; worry, stress and anxiety over how to stretch 1 into 10, which bill to pay first and sometimes creative ways to hide from bailiffs. It also means cutting back on those precious moments we use to recharge and release; a trip to the movies, a light dinner out, gym membership, laughter-filled trips to the pub with old friends. Worse still if you have loans secured on your home. If these are not paid back on time you may be facing repossession.

There are two things that need to be addressed. One; how you're feeling, how the stress of the situation is affecting you. Two; how to deal with your financial situation.

Some of the symptoms of stress listed on the NHS website include anger, depression, difficulty sleeping, chest pains and nervous twitching. The same page also states "If you have been experiencing some of these symptoms for a long period of time you are at risk of developing high blood pressure which can lead to heart attacks and stroke. So it is imperative that you address how you are feeling. To read more about stress please visit the NHS Stress Pages If you think you may be suffering from stress, book an appointment with your GP to have a chat. Also, prioritise good sleep, eating well, exercise and maybe learn a deep breathing technique for the moments you begin to feel overwhelmed.

The other key aspect is to get your finances in order. If you are facing repossession you need to act quickly. One of the possibilities you may have considered is to sell your home. However, in this weak property market you may have found that too difficult, uncertain and slow an option. A cash buyer with no chain attached may feel like a far-off fantasy. However there are companies who act as professional home buyers who do just this. They typically offer two options. A quick property sale of your property or a scheme known as sell and rent back. There are many of these companies around and the industry is beginning to be regulated by the FSA, so make sure the company you approach has the minimum of an interim regulation. (At the time of writing (Dec 2009,) only an interim regulation is available and companies are currently applying for a full regulation.)

A quick property sale of your property can be completed in as little as a month (some companies can even complete in two weeks if you are in dire need.) The best thing about this option is that they can exchange contracts with you on the day of their first visit. This means that you have that all important confirmation of sale that will stop repossession immediately. These companies tend to pay between 60-80% of the market value for your house.

If however, the upheaval of moving house is another stress that you would love to avoid while receiving all the benefits of selling your house quickly, it may be worth looking into the sell and rent back scheme. This is often offered by the same companies as the quick property sale option. It can all move just as quickly however you would also sign a rental agreement which would cover the rental rate and the length of tenancy. Dependant on the company, the length of tenancy can vary from short term (six months) to indefinite (some companies are happy for you to stay until whenever you choose to move on or buy back the property from them) - providing you pay your rent on time. If you feel that that would not be possible, speak the them as some can arrange a rent-free period at the beginning while you're getting back on your feet. Make sure you know what the policy of the company is before you sign anything. Once the company own the property they act as landlords, taking responsibility for any repairs that may be necessary. The whole process is completely discreet, so you don't even need to worry about having to tell your neighbours.