Selling home to avoid repossession – Is this the right decision?

Selling home to repay your unsecured debts such as credit card debts, personal loan may not be a good idea. But secured debts are different; if you fail to repay the debt in time your creditor can repossess the house and sell the house to someone else evicting you from the property with a court order.

The entire episode is not only humiliating for you, but it leaves a very harsh notion on your credit report which pulls you back from getting benefits in the coming days. If you think that by selling home you can avoid repossession then go for it because nothing is worse than repossession.

If you have missed one or two payments and your creditor has started calling you, probably a talk with them can help you avoid repossession. But if you are in an advanced stage of repossession when your creditor is suing you, it is better to sell the house and avoid house repossession in UK.

You have to inform your creditor that you are selling the house and soon you will pay off the debt. If you are working with cash property buyers, then ask them to give you some sort of written document that you can show to your creditor to make them realise that you will be able to pay off the debt soon. Give them an idea on which date you can pay the outstanding debt. Once they are assured that you can pay off the debt, they would stop the legal proceedings.

Whether you sell or allow the lender to repossess your house, the property would not remain in your possession any more. Moreover, repossession would make your credit ugly. So it is always good to sell the house, avoid repossession and keep your credit in good shape.

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