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

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.

There are many ways available today to get money to deal with your specific needs. Payday loan is an option to get money in your bank account in not more than few hours. But, these types of loans come with a lot of interest which is the reason why some people don’t like this particular option. Also, it is not possible to use this option if you need a lot of money. That’s exactly the situation when you can actually make use of an option, called “sell and rent back” your home.

What is sell and rent back?

Although lots of people now use this option and its widespread use have helped this industry to grow in an amazing way but there are people who still no nothing about it. If you are also one of those persons, it is enough to know that it is an option where you sell your home to an investor and start living as a tenant in the same home. What it means it that you get the money you need without saying goodbye to your home sweet home.

Sell and rent back is a very good option to consider in all situations but there are few situations when it is hard to find an option better than this. For instance, in today’s housing crisis it is not uncommon to find yourself dealing with repossessions. In fact, when you will delve more into the details pertaining to housing crisis in America, you will find that almost all of the states are facing certain foreclosure and repossession problems. California is one of the states where you can find a lot of homes listed into the foreclosures.

Now, in this very situation it is essential for you to make sure that you don’t lose your home and that’s when you can consider the option of selling and renting back your home. This is the ideal situation to use the idea of sell and rent back as it can help you to be back on the road of your fiscal freedom.

It is also crucial to mention that foreclosures are one of the reasons behind the housing crisis in America. Actually, when people don’t become able to cope with their mortgage payments, there remains no other choice for them but to face the problem of foreclosure. After the foreclosure, people have to leave their home but that’s the primary reason of devaluation of homes in that entire area. It often contributes towards strengthening the housing crisis.

Actually, people don’t like to buy homes in areas with lots of foreclosed properties and value of home goes down in the entire area. But, in case of sell and buy back schemes you don’t have to leave your home and the value of homes in the entire area stays at the right level.

The bottom line is that the option of sell and rent back your home is good not only for you but for economy as a whole. So, don’t forget to consider this vehicle to stay away from repossessions and foreclosures.

DO…

• Use a reputable company that won’t ask you to pay anything in advance
• Make sure that the company has a local representative living in your area
• Ask for testimonials and recommendations and try to speak to at least one existing customer
• Use a company where someone will come to visit you in your home and discuss the options which are best for you.

DON’T…

• Pay for an external valuation
• Rely completely on external valuations from a RICS surveyor
• Pay any fees in advance, before an offer has been agreed
• Call companies with 0870 or 09 numbers, these are high priced premium rate numbers
• Use a company without a registered office address
• Trust companies that won’t let you speak directly with a local representative