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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

20 Nov 2008

Selling a house in the current market

Now may not be the ideal time to be selling your house, but there are a number of approaches which differ from the norm that you might be able to take advantage of, if you are in the position where you really must move.
There is the option to sell and lease-back over either a long or short term, and there are two reasons that I can see that you might want to do this:

1. If I needed to Sell My House, but I had not yet found my ideal new property. This would be a short-term leaseback scenario where I could effectively rent my own home back whilst looking for a new home.
There is an advantage here in the current climate in that property prices are dropping so the 'ideal' property could be cheaper by the time you buy it than when you sold your own property.

2. The second scenario is that you need to sell your home and you are concerned about the approaching threat of negative equity in a falling property market. You will effectively be swapping your mortgage for rent, and be able to hopefully realise some capital out of the deal if you are not already in negative equity.

If you need to sell and you are having trouble finding a buyer in the conventional way, you can take solace in the thought that there are organisations out there in the current economic climate that will be willing to guarantee to take your property off your hands.

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