How to Sell a House Fast Due to Job Loss?

Losing a job can be a heartbreaking moment on many levels. Not only do you stop seeing that monthly pay cheque, but you also lose routine, a sense of togetherness and that workplace humour that only you and your colleagues could share. Perhaps the biggest loss of all though, could be your house. With a lack of regular income and a mortgage still to pay, it suddenly becomes a problem you need to tackle head-on if you want to avoid repossession.

In this guide, we explore how you can sell your house fast and keep afloat whilst you search for a new job.

Do you need to sell your house fast when you lose a job?

You might not need to. A golden rule of finance is to ensure that you have at least three months of living expenses saved in case of emergencies. The truth is somewhat different though. Not many people are in this position. According to the FCA, 21% of people in the UK have saved less than £1,000, and 10% have nothing saved at all. This means for many that when a job is lost, the home becomes increasingly difficult to keep

Securing a quick sale, whilst not on your list of priorities, may be the best option to help you:

• Avoid repossession
• Clear other debts
• Protect your credit score
• Pay off the outstanding mortgage

What to do if you lose your job and have a mortgage

If you have lost your job, either through redundancy or dismissal, the first thing to do is not panic. A clouded mind won’t work through the process logically. Following these steps will help you navigate the stress and confusion that the situation may bring.

• Assess your finances. Review your savings, redundancy package (if applicable) and current bank balance. How long will these amounts support mortgage payments and the general cost of living? Have you already missed any mortgage payments?
• Speak to your lender. Mortgage lenders may have a reputation for being monsters, but they do want to help. Inform them of your situation and talk through options such as payment holidays or whether interest-only payments can be made for a short period.
• Consider selling. If your savings aren’t sufficient or your lender offers you unfavourable terms, selling may be the best option. It might not be the easiest decision to make, but it could relieve you of added stress, pressure and worry.

What is the quickest way to sell your house after a job loss?

There are many ways to sell your house after a job loss; some offer speed, some offer a high return. Some charge significant fees, others won’t charge you a penny. It’s down to you to assess which options work best for your circumstances.

Estate agent

The most traditional way to sell a house, but also the slowest and most expensive. You will get market value, or close to it, but with a typical timeframe ranging from one month to six months, it would require significant savings and a friendly lender to keep you in the house for this amount of time. This slow-moving process and lack of a guaranteed sale are why many consider selling their house without an estate agent.

Auction house

Online and in-person auctions are rising in popularity. They present a fairly quick route to sale, but the house may often sell well below market value. Add in the legal fees and auction house fees, and suddenly you are left with a sum well below what you’d expect. With no guarantee of a sale either, it could take several attempts before you find a buyer.

Cash house buyer

A cash house buyer provides you with the fastest way to sell a house after a job loss. You won’t get market value for it, with typically 70% to 80% of the price offered, but your sale is guaranteed. You won’t pay any fees either, and the process can be completed in as little as seven days. Perfect if the savings won’t stretch too far and the lender has proposed unfavourable terms.

How soon do I have to sell my house after losing my job?

There isn’t a set timeframe; if you have sufficient savings to use and can satisfy the lender’s requirements, you may not even need to sell. However, should the savings dwindle, or there are not enough to fulfil your financial obligations, you should consider selling at the earliest opportunity.

Most lenders will not begin repossession proceedings until more than three mortgage payments have been missed. From there, it can take a further year for the legal process to be completed. However, you should avoid letting it get this far. Every time a mortgage payment is missed, your credit score takes a hit, which will then make it harder for you to secure a mortgage in the future. Furthermore, if the process reaches the stage of repossession, you’ll also have to pay an assortment of legal costs and associated fees.

Do I need to prove I’m working if I need to sell my house?

No, not at all. Whether you choose to sell with an estate agent, an auction house or a cash house buyer, there is no requirement to prove that you are in work or job hunting.

What are the disadvantages of selling my house with an estate agent after losing my job?

The traditional estate agent is often seen as the ideal way to sell a house. After all, it’s the only way many people know. However, it can be fraught with complications, delays and stress that make your current situation much worse. Finding a buyer can be tough, and even if you find one within days of listing your home, plenty of obstacles can get in the way:

• The chain breaks elsewhere, making the buyer unable to purchase.
• The buyer does not meet the criteria of the mortgage lender.
• The searches uncover something the buyer is unhappy with.
• The buyer changes their mind.

In addition, you have the added concerns of:

• Slow sales process
• Slow-moving market
• Expensive estate agent fees
• No guarantee of a sale

These factors are why many choose a cash house buyer.

Is a cash house buyer the fastest way to sell after losing a job?

Yes. Not only is it the fastest way to sell, but it’s a guaranteed sale that can help put your mind at rest. Choosing a company like Sell House Fast ensures that you:

• Sell your house on your terms.
• Sell your house in a timeframe aligned with your needs.
• Sell your house for free– no costs involved at all.
• Don’t worry about viewings.
• Have no fear of a chain breaking.
• Rapid access to funds to help you clear the mortgage or other debts.

Key tips for selling your house fast after a job loss

Run through our checklist to ensure you get the fastest and best possible sale after losing your job:

• Assess finances and current mortgage situation.
• Choose a sales option that works best for you.
• Prepare your house for viewings (if selling via estate agent or auction)
• Remain honest and open with any potential buyers.
• Ensure all the required paperwork for a sale is ready (TA6 form, TA10 form, EPC, mortgage details, etc.)
• Be wary of estate agents or cash house buyers that may overpromise but underdeliver. Check reviews, assess fees and ensure everything is in writing.
• After the sale, consider downsizing or renting until your circumstances improve.