Selling property to avoid repossession
With the increasing fall out from the sub prime lending market the number of repossessions has increased phenomenally. The outcome is that many families lose their home and banks lose their capital. So who profited from this? Well, there are two groups, firstly the agents; those that sold the properties to vulnerable people and those that took large commissions for selling the loans. The second group were the owners who achieved a quick house sale, at what we now know, as the top of the market. You can’t blame those who sold their properties for the top price, but maybe some blame should be placed on those loan agents who ‘oversold’ to the vulnerable. But this is now history, what can be done to help stem the problem of property repossessions? One possibility is for homeowners to sell and rent back their house or other property. This way they can pay off mortgage debts and then rent back at a more affordable market rent. This option will not suit everyone, but it will certainly benefit many and go some way to reducing the amount of pain from property repossessions.