Very Quick House Sale

The Government is offering some hope for victims of ’sale and rent back’ scheme.

We revealed how tenants who sold their homes to a string of companies, includingHome Assured, North East Property Buyers and Freedom Property, have ended up forced out of their homes when their landlord is repossessed for not keeping up mortgage payments.

Margaret Beckett has announced plans to give tenants at least two months’ notice in such situations. Currently they could be forced to move within two weeks or less of a repossesssion order going through. Mrs Beckett said:

“It is not right that tenants through no fault of their own can be forced to leave their home at a moment’s notice if their landlord is repossessed, which is why we are intending to change the law. In the meantime, I hope that lenders will move as quickly as possible to safeguard tenants in their homes.”

It might not seem like much of a life-raft but it’s been broadly welcomed.

Leslie Morphy, chief exec of Crisis, said:

“Private tenants risk becoming the hidden victims of this recession and at Crisis we have been highlighting their plight for months. We are delighted that the Government has listened. We now need this legislation to come in urgently. With the recession biting and repossessions soaring, this protection can’t come soon enough.”

David Harker, chief exec of Citizens Advice, said:

“We are delighted that the Government has responded to the concerns we have raised. In the last year Citizens Advice Bureaux have seen around 1,000 cases where private tenants were facing sudden homelessness because their landlord was being repossessed. It is clearly unfair that private tenants lose their right to two months notice to quit simply because their landlord has failed to pay the mortgage. The challenge now is to ensure that the new protection is put in place without further delay to stop any more people being fast tracked to homelessness.”

By Nick Sommerland, Daily Mirror  20/05/09

Due to house repossessions or bank foreclosures in Scotland, it is easy to lose your house and home. There are many people who don’t wish to lose their home but find themselves in a situation outside their control. This is where a sell and rent back scotland option can work well.

While sell and rent back scotland is a good option for most, it is not free of risk. But, the risks can be minimised just by choosing the right sell and rent back in scotland company. The best company will always try to help rather than taking advantage of your situation. Although it is a fact that they have to get their profit otherwise they would be thrown out of the business but they must never take undue advantage of situation. Also, they will have no problems in letting you use your home in the way you want. What it means is that you will never have to live or feel like a tenant.

Even if you believe that you have found a right company, you must never overlook the importance of checking all legal documents. But, apart from paying attention to the quality of a company to get aforementioned benefits, you must keep your eye on some other benefits. For instance, on some occasions you can qualify for Housing Benefit.

Housing Benefit can help you to deal with your problems in a slightly better way. Basically, you can qualify for it if you think you will not be in a position to afford the rent after selling your entire home. Here, you must keep in mind that several conditions apply to this entire concept. Also, you will have to provide several evidences showing that you are left with no choice but to sell your home. For instance, letters from mortgage lenders, proof of your income and evidence of other specific factors creating an impact on your decision should be given to the council.

The fact of the matter is that if you are interested in getting some money to deal with mortgage payments, it is better to use the option of sell and rent back your property. But, you must understand that there are other benefits that can be obtained in specific situations. You must however try to educate yourself about those situations by consulting with a professional so that you may know if you can qualify for Housing Benefit or not. Do keep in mind that researching is the only way to learn all details pertaining to benefits associated with selling your properties.

This is where companies offer to buy your house at a discounted rate but promise to let you stay there as a tenant.

For those struggling to meet mortgage payments or facing repossession, this might seem attractive, particularly as these companies offer quick sales. There are many genuine sale and rent back schemes but some cowboys are taking advantage of vulnerable consumers.

They might promise that you can stay indefinitely in the property but then give you only a standard six-month tenancy agreement. They might promise that rent won’t go up but then increase it by a large amount once the initial period is up. Or they might charge you a large fee upfront, and then disappear.

What to do 

Be suspicious of companies offering you a much better deal than everyone else.

For example, promising you much lower rent or offering to pay you 95 per cent of the market value of your home when everyone else is offering 70 to 80 per cent. They could be scammers.

From July this year, the FSA will regulate sale and rent back schemes, so you’ll be able to check if companies are authorised with it. Even then, sale and rent back might not be best for everyone so seek independent advice from an organisation like the Consumer Credit Counselling Service.

If you do go ahead, make sure that you get details of future rent and the length of your tenancy in writing.

You might get as little as 70 per cent of the true value of your home. So, if your home is worth £158,000, you could lose £47,400.

The number of homes repossessed in the UK rose to 12,800 in the first three months of the year, the Council of Mortgage Lenders (CML) has said.

This was up 23% from the 10,400 in the previous three months and 50% up on the 8,500 in the same period last year.

The CML has predicted that 75,000 homes will be repossessed in 2009, almost double the 40,000 of last year.

But the group has now described this prediction as “pessimistic” and could change its view in the summer.

But figures from the Ministry of Justice show a huge drop in the number of lenders getting court permission for the early stages of repossession.

Debt Dangers

The number of home loans with arrears of more than 2.5% of the mortgage balance rose by 12% from 182,600 in the fourth quarter of 2008 to 205,300 in the first three months of this year, the CML said.

This was 62% up on the 127,000 in the first quarter of 2008.

Other Key Issues Revealed:

* There was a jump in the number of buy-to-let investors having properties repossessed in the first quarter of the year
* Fewer people faced the early stages of repossession as lenders held back from going to court
* New schemes were aimed at offering alternatives to repossession

The figures were described as “pretty ugly” by Chris Tapp, director of debt charity Credit Action.

Lenders have come under increasing pressure to help out borrowers in trouble.

There is help available for people in danger of losing their homes. Tracey Myers nearly lost her home a few years ago.

“It was awful. I wouldn’t want anyone to go through it. There is no way out – no matter how much you show people you are trying to sort things out, they just want their piece back,” she told the BBC’s Propertywatch programme.

“I resigned myself to the fact it was going to be repossessed. I waited for the knock on the door. I had everything packed – I lived in a shell so at least if they came to evict me, I could get everything out. It was just a waiting game.”

But, helped by the Scottish Mortgage Rescue Scheme – she managed to keep her home. A similar scheme in England offers people the chance to sell some or all of their home and rent it back from a social landlord.

A separate UK-wide scheme allows people who have temporarily lost their income to defer a proportion of their mortgage interest payments for up to two years.

Lender Help

In November, the large lenders agreed to a minimum three-month delay before starting repossession proceedings. Many said this was standard industry practice.

HELP FOR HOMEOWNERS
# Mortgage Rescue: allowing the owner to become a tenant in their own home
# Homeowners Mortgage Support Scheme: allows newly jobless to defer up to 70% of mortgage interest payments
# Court Protocol: demands a three-month delay and discussion of alternatives before repossession action
# Help For Tenants: minimum notice of two months for tenants to leave if their landlord’s property is repossessed

In October, lenders were told that in order to gain court permission for a repossession, they would have to show they had tried to discuss and agree alternative arrangements with borrowers. These alternatives could include a full or partial repayment holiday, changing the type of mortgage or extending the repayment term.

Figures from the Ministry of Justice (MoJ) – also released on Friday – show that the pressure on lenders to ease back on repossessions could have paid off.

The ministry’s figures – which only cover England and Wales – show that the situation earlier in the repossession process, when lenders first go to court for permission to take back a mortgaged property.

There were 17,054 repossession orders granted in the courts in the first three months of the year. That was 39% lower than in the same period a year earlier and 43% lower than in the last three months of 2008.

However, it is not clear whether lenders have cancelled plans to make repossessions, or simply delayed them.

Lenders are keen to assist anyone who got into difficulties with repaying their mortgage, Michael Coogan, the CML’s director general said.

“Lenders are acutely conscious that behind the statistics are real people, many of whom are affected by the economic downturn and its impacts on unemployment, changes in circumstances and inability to refinance,” he said.

Rental Sector

Separate figures released by the CML showed a leap in the number of homes repossessed that were owned by buy-to-let investors.

There were 1,700 buy-to-let repossessions in the first quarter of the year, up from 1,300 during the previous three months.

A receiver of rent was appointed to a further 2,400 buy-to-let properties during the period – up from 1,800 in the the previous quarter. This enabled tenants to stay in their home but with their rent paid to the lender rather than the landlord.

“The figures also prove that government announcements this week to help tenants of repossessed landlords must be implemented as fast as possible,” said Sam Younger, chief executive of housing charity Shelter.

These proposals included a minimum notice of two months for tenants to leave if their landlord’s property is repossessed. There have been some cases of people being given less than two weeks to find somewhere new to live.

With interest rates falling, the CML said that the proportion of buy-to let investors in arrears on their mortgages had fallen slightly.

People may need to sell their home for many reasons, such as some unexpected turn of life or the need to move to a new area. Everyone gets stressed when selling their home.  Sometimes they need to sell their home quickly otherwise homeowners can become burdened with two separate mortgages.

When you are selling a house you should keep in mind some important factors such as price, condition of home and publicity. Here are some tips how to prepare your home for the market and sell it quickly.

Fix your Price

When you determine a price you should consider some facts such as pricing it correctly. The market is always changing and fluctuating, so be sure that your asking price is based on the comparative market analysis. Your estate agent can you help in this case. You can also go through the current issue of the property newspapers and online information for a better idea of local prices.

Condition of Home

The condition of your house should be relative to your asking price.  Make sure that all defects are repaired before showing the potential buyers around.

1. Complete DIY jobs First

People are usually reluctant about DIY jobs such as general electrical work,  roofing work, removing or redecorating etc. Do any outstanding jobs to give buyers less reasons to walk away or offer a lower price.

2. Concentrate on the appearance of house from the outside

No one expects to buy a shabby home. If the outside of your home looks neglected, it is very difficult to convince home buyers to tour the inside, no matter how beautiful it’s interior. Make sure the outside looks inviting and offers good “kerb appeal”.

3. Freshen up the front door

The front door is your home’s first important impression to potential home buyers.  So make sure that the front door is perfect. If the current front door is damaged, replace it with a new one.

4.Kitchens and Bathrooms

Kitchens and Bathrooms accumulate the most dirt and the most clutter. A tidy and clean kitchen and bathroom attract the buyer more. Replace the shower curtain, display fresh towels and a new soap to draw the attention of the buyer.

5. Arrange the Rooms according to Buyer’s Expectations

People want to see the rooms as they are expected. That means if they are ready to pay for three bedrooms they want to see three bedrooms not two bedrooms and a study room. In this case you can add a sofabed in your study room so that it gets the look of a bedroom.

6. De-Personalize your Home

A buyer imagines themselves in your property and they cannot do this with your personal things around. It’s important to pack your things away if you have ‘collections’ or hobbies. Buyers imagine their own photos on the walls, so pack up personal photographs. This will also help you to mentally prepare for the shift.

7. Remove all unwanted furniture

With less furniture a home looks more beautiful. So you can remove pieces of furniture that block the walkways and put them in storage. You can also remove extra leaves and other unnecessary from your dining table to make the room appear larger. You can also put daily necessary items in a small box when they are not in use.

8. Self Scrutiny

Go outside your house, open the front door and stand there. Now ask yourself if you are intended to go inside. You should also be careful whether your house welcomes you or not. Pots of flowers near the entry make a welcoming feel and make the home seem newer and which is worth to draw the attraction of the buyer.

Publicity

You can contact with a reputable and professional cash buying company that can expose your home and advertise for your home. It will ensure you to get a handsome price. But you should choose your cash buying company carefully. Many companies now offer to cover legal fees, so try and find one of these. Don’t be misguided by attractive advertisements such as “sell your home in 24 Hours” because it is usually impossible.

So fix and list everything that is undesirable about your house. I Hope that these tips will be helpful for you to sell your home quickly at an acceptable price.

In the current housing and economic downturn, there appear to be too many sellers with too few buyers. Due to lesser demand, it is literally impossible to sell your home in short period of time. But, if you can not wait due to financial pressures, there is the option of quick sale to one of the many several companies who offer to buy your home in this situation.

The best thing about this particular option is that you can actually sell it to rent back. This is basically known as sell and rent back, which is still a relatively newer concept but flourishing quickly in the current market conditions.

This becomes an attractive option for house sellers as the owner can actually stay living in their home and still release the money to satisfy their needs, making the demand for this particular option of sell and rent back likely to increase in future months.

If you are unaware of this option but it sounds interesting to you, it is essential to spend some time in collecting more information about the various deals on offer. The most important thing to understand is that you will have to give up a significant amount of equity to enjoy the luxury of staying in your home after selling it.

Now considering this particular fact, it becomes quite important to check if you really need to switch to this option or not. It is sad but true that lots of people don’t look at all the options available to them and choose to sell and rent back when they don’t really have to. Also, it is not possible for some people to deal with the rent, resulting in a possible eviction.

While there is a little doubt about the fact that there are many people who are happy with the arrangements being made by buyers, this doesn’t mean that it is good for all sellers. There are risks involved in the entire concept and most consumers have to face it just because they believe on informal assurances.

The fact of the matter is that though sell and rent back is an option for all but there are several complications involved with it. These complications can not be deciphered by an average man in the street, especially if he is in a stressful situation. Being in an emotional state, it is also not possible for people to evaluate other alternative options and that’s when they make haste by going for sell and rent back option without arming themselves with necessary details. So, if you are interested in this sell and rent back schemes, go first to the Citizens Advice Bureau, then seek professional guidance to evaluate the various companies before finalizing your decision.