What happens if I my home sells for a price higher or lower than what I owe my lenders?

If your home sells at less than the price you owe your lenders, you will still be held liable for the difference in costs. The payment scheme for this amount can be arranged between you and your lender. On the other hand, if your property was sold at a price higher than what you owe your lenders, you are entitled to this income.

We have had our home sadly repossessed two years ago. Things have much improved since then and we are looking at getting another mortgage? Is this possible?

Possible, yes, but it can be quite difficult. Your credit report and credit history will be reviewed when you apply for a mortgage or loan (any loan) and it will be noted that you have recently had a home repossession case. This immediately labels you as a high risk, and you might find it hard to get another lender who will be willing to take you on. If you ever do, you may find that the interests and deposits may be higher than those without home repossession history.

Don't forget to shop around for various properties and various lenders. Each lender will have different underwriting policies and you might find one who will be more sympathetic to your case, particularly if you prove that your situation is much improved now.

If I get the money to pay my lender, can he refuse to sell back my home to me?

Yes, he can and he will if he has already made a deal with another buyer. Other than this, any decent lender will always consider you as a preferred buyer as long as you can pay the amount of the property.

This is why the Sell and Rent Back option is very logical. It is like depositing your home in a storage for safekeeping until such time when you can take care of it again (which includes expenses, of course), but with the added benefit of being able to continue to live in your home.