It’s not always wise to sell your home to get out of debt, but you should immediately start to manage your finances, cut up your credit cards and control your spending. Selling your house to pay off debt should be your last resort, as there are other ways to reduce debt without selling your home.
You cannot go to prison for not paying the mortgage itself, but at any stage whilst you are having money problems you disobey an order of the court, you could be sent to prison for misconduct, but not because you’ve not paid your mortgage. If you follow all court instructions you won’t go to prison.
If you own a property you are often excluded from the housing register for a council property, but there are exceptions and you can join if you need shelter, you can’t live in your property following a relationship breakdown of if the accommodation is overcrowded and conditions cannot be improved.
Tricks to get a council house quickly include clearly communicating your circumstances to your local council on your application and keeping them up-to-date with changes in your circumstances. Once you are on their waiting list, bid for properties and be flexible when you’re offered a council home.
Companies that buy houses work well for those home owners who are looking for a quick sale and need cash fast. The process is normally very quick from accepting the offer through to completion and you receiving the funds. There are no chains to contend with, you don’t need to involve estate agents (so no estate agent fees), but you will need to be prepared to accept a lower than market value offer to sell your house in this way. Typically you’ll receive between 25-30% less for your property than if you were to sell it in the conventional way using an estate agent. You will need to weigh-up the pros vs the cons of selling your home in this way before making a decision.
If you stop paying your mortgage payments you may have your home repossessed. It will also make obtaining future credit very difficult in the short term. This not only includes getting home loans, but it will become extremely challenging to obtain any form of credit. Missing one or even a couple of mortgage payments doesn’t mean repossession is imminent. But forgoing them will set the repossession process in. Plus to boot, it will have long-lasting consequences for your credit and finances.