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Voluntary schemes `offer alternative to repossession`
03/03/2008
Sale and rent back schemes can often be a preferable alternative to house repossession for struggling homeowners, an industry expert has suggested.
A combination of high debt and a lack of availability of credit mean that many experts are predicting both bankruptcy and repossession figures to rise significantly during 2008.
As a result, a sale and lease back scheme - where homeowners facing repossession sell their property to a company at a discounted rate and then rent it back from them - offers homeowners a "clean slate" with their debt problems, the Repossessions Advice Centre stated.
Paul Fletcher, director of the company, said: "If a company is offering to give you a clean slate this is better than still having a debt left with the mortgage lender.
"People are unaware that the debt on a property continues to rise even after repossession: the interest will continue to be added until the property is sold."
