Selling your home to repay for debts?

For some people in debt selling their home is an option to raise the funds to pay off their creditors. If you are a home owner with equity in your property this could be an option for you.

If this is a route you think would be suitable for you read our top tips for what to do:.

Get together all of your creditor balances and confirm how much you owe to each of them.
Contact your mortgage lender and get up-to-date balances on your outstanding amount. Then you are in a position to instruct a surveyor to determine the value of your home. From this you can see how much equity you have.
Do not forget to calculate the fees that are involved in selling a house.
If, once your house has sold, you have enough funds to clear your debts in full you can arrange payments with them.
If your funds do not cover all of the debt then you can contact Payplan and we can look into offering your creditors a reduced settlement or a Full and Final IVA.
Remember to calculate the costs of moving into your new accommodation. If you are moving to a rented property you will need to have funds available to offer as a deposit.

Selling your home in order to repay your debts will prevent creditors from forcing the sale of the property or them going down the bankruptcy route , however you should always consider all options before making any major decisions like this and seek appropriate advice.

Written by Gemma on November 28th, 2011

Filed Under debt advice, debt help, mortgages | Trackback | Leave a Comment