| As many people will have noticed recently, in the UK | | | | may be getting out of hand. In this situation the |
| and around the world; the economy has declined | | | | home owner may be forced to sell their house |
| quite drastically in the last year in what has been | | | | quickly in order to raise the cash to pay off these |
| dubbed in the UK as the 'Credit Crunch'. Nothing has | | | | debts. A seller in this position may be able to buy |
| been so affected by this as the housing market | | | | back their home at a later date when their financial |
| which, only a few years ago, was a sellers' market | | | | situation improves again. |
| where house prices were strong and competition for | | | | - The property may be in a bad state of disrepair |
| houses was high. Today the opposite has come into | | | | and owners, not having the time or money to put it |
| effect - perfectly good houses at reasonable prices | | | | right, may be happy to accept below market value |
| can sit on the market for months, often losing value | | | | to release the equity from the property as soon as |
| leaving the seller with stress and anxiety. To make | | | | possible. |
| the outlook even worse, current market conditions | | | | - And, unrelated to any of the above, some home |
| are signaling that house prices will continue to decline. | | | | owners may be planning on moving abroad at short |
| For those in comfortable financial situations, while still | | | | notice, in which case the speed they can sell their |
| a major stress factor and inconvenience, the seller | | | | house at becomes a priority over getting maximum |
| can most likely afford this delay in moving to a new | | | | value. |
| home however, for the unfortunate and often | | | | Even when a buyer is quickly found for a house on |
| distressed seller who is struggling to make ends meet | | | | the private market and the process is carried out |
| this can present very serious financial difficulties. Why | | | | smoothly between seller, agent and buyer, it can |
| might a home owner need to sell quickly? A few | | | | often be a drawn out process with many formalities |
| common reasons include: | | | | and associated fees before a deal can be finalised. In |
| - Threat of repossession from the bank. | | | | addition, many find themselves stuck in a chain or |
| Repossessions have risen sharply over the past year | | | | victim to potential buyers pulling out at the last |
| - figures from the FSA show repossessions are up | | | | minute, wasting months or worse. |
| from 27,900 in 2007 to 46,750 properties being | | | | To those in the above situations, time can be a |
| repossessed during 2008. | | | | luxury they cannot afford when a buyer will needs to |
| - Many, though not yet facing repossession, are | | | | be sought ASAP; along with a guarantee the sale will |
| struggling to keep up with mortgage payments. In | | | | be completed. For this reason, many have turned to |
| this case many home owners may decide to | | | | house buying companies and a quick sale as a solution |
| downsize to a smaller property with lower mortgage. | | | | to their problems. |
| - Other debts, such as credit cards and personal loans | | | | |