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Selling your home with mortgage arrears or facing repossession
Falling behind on mortgage payments is stressful, and it happens to many people. You may still have options, including a controlled sale on terms you agree.
The short answer
You can usually sell a home with mortgage arrears, and even after a lender has started possession proceedings, as long as the sale repays what's secured on the property or your lender agrees. Selling before a repossession lets you keep more control over the timing and the outcome. Get free advice first, and talk to your lender early.
Your first steps
Contact your lender, explain your situation and ask what help is available. If you decide to sell, tell them; lenders and courts will often allow time for a sale that will repay the debt.
If you have a court hearing, don't ignore it. Free legal advice is available on the day through the Housing Loss Prevention Advice Service.
Where Lionsmead fits. If selling is the right option for you, we can offer to buy your home directly and agree a completion date with you. Our offer will usually be below full open-market value. We'll explain why, and you're free to compare it with other options.
Before deciding to sell, speak to your lender as early as you can, as they may have options. Free, impartial debt advice is available from MoneyHelper, Citizens Advice and Shelter. We encourage everyone to take independent legal advice before agreeing to a sale.
Questions people ask
Can I sell my house if I'm in mortgage arrears?
Yes. You can sell a home with mortgage arrears as long as the sale price is enough to repay the mortgage, the arrears and any other loans secured on the property, or your lender agrees to the sale. Tell your lender you are planning to sell; they may give you time to do so.
Can I still sell if my lender has started possession proceedings?
Often, yes, until the lender takes possession. Courts can adjourn or suspend a possession order to allow a sale that will clear the debt. If you have a court date, get free advice straight away, including from the Housing Loss Prevention Advice Service at court.
Is selling my only option?
Not always. Your lender may be able to offer a payment arrangement or other help, and a free debt adviser can check what support you may be entitled to. Selling is one option among several.
Do you offer sale and rent back?
No. Lionsmead does not offer sale and rent back.
Will you pay off my arrears?
If we buy your home, the sale proceeds repay your mortgage, including any arrears, through the solicitors on completion. We'll explain the figures in writing before you agree to anything.