Financial difficulties: what options are available to homeowners?

A drop in income, a separation, rising expenses or several unexpected costs can put pressure on a household budget. For homeowners, this may raise an important question: should you keep your home or consider selling it?

Before planning, it is important to assess the situation as a whole and understand the different options available.

1. When do financial difficulties become a cause for concern?

Financial difficulties can be temporary. An unexpected expense or a temporary drop in income does not necessarily mean that you need to sell your home.

However, the situation deserves closer attention when your budget no longer allows you to sustainably cover everyday expenses and financial commitments.

For homeowners, several costs should be considered in particular:

• Interest and repayments related to the financing of the property
• Housing costs
• Maintenance costs
• Insurance and taxes
• Any upcoming renovation or repair work
• Other household loans or debts

The main objective is to determine whether the difficulties are temporary or whether they are likely to persist.

2. What should you do when you start having difficulty making payments?

The first step is to establish a clear overview of your financial situation: available income, fixed expenses, any outstanding debts and costs related to your home.

If certain payments become difficult to manage, it may also be useful to contact the relevant creditors as soon as possible to discuss potential solutions.

In Switzerland, debt counselling services are also available in every canton to support people experiencing financial difficulties.

The important thing is not to wait until several unpaid bills have accumulated before considering the possible alternatives.

3. Do you necessarily have to sell your home?

No. Selling is only one of several options.

Depending on the situation, reducing certain expenses, reaching an arrangement with creditors or reorganizing the household budget may make it possible to restore financial stability without selling the property.

The question is therefore less about whether you should sell and more about whether keeping the property remains financially realistic.

To answer this question, you need to compare the ongoing costs associated with the property with your available resources and the expected development of your financial situation.

4. Why consider selling early enough?

When a financial situation continues to deteriorate, waiting can gradually reduce the options available.

In the event of unpaid debts, a creditor may initiate debt enforcement proceedings. If the proceedings continue, income or assets may, among other things, be subject to seizure.

Considering a sale at an early stage does not necessarily mean making a rushed decision. On the contrary, it allows you to understand this option and determine whether it could help improve your financial situation.

It also provides more time to assess the value of the property and compare the different selling options.

5. Start by knowing the value of your property

Before deciding, it is useful to know the value of your home and assess what selling it could realistically contribute to your financial situation.

A valuation allows you to compare the value of the property with the remaining mortgage balance, any outstanding debts and the costs associated with the transaction.

This step helps answer an essential question: would selling the property release enough funds to restore a more stable financial situation?

However, it is important to bear in mind that the amount available after the sale depends on several factors. A valuation therefore provides an initial point of reference, but it does not in itself guarantee that all financial difficulties can be resolved.

Knowing the value of your home does not mean committing to sell it. Above all, it provides concrete information that can help you compare the different options.

6. Traditional sale or direct purchase by Swifthome?

If selling appears to be a suitable option, there are several possibilities.

A traditional sale involves putting the property on the market to find a buyer. The time required depends on the property, its price and local demand. This option may make it possible to seek a higher selling price, but it involves a marketing process whose duration remains uncertain.

For homeowners who wish to sell quickly and know the terms of the transaction in advance, a direct sale provides another option.

A direct sale solution with Swifthome

Swifthome offers a direct purchasing service for houses and apartments in French-speaking Switzerland, particularly in the cantons of Vaud and Geneva. Unlike a traditional real estate agency, Swifthome purchases the property directly, without looking for a third-party buyer.

Following an initial valuation and a visit to the property, a firm purchase offer can be made. If the homeowner accepts the offer, the transaction then proceeds before a notary. If necessary, this process can be completed within 15 days.

This solution may be suitable for homeowners who are struggling to meet their mortgage payments, need to release funds or wish to sell without carrying out renovation work.

However, it is important to compare the different options. A direct sale prioritises speed and simplicity, while a traditional sale may achieve a different price depending on market conditions. The amount offered by Swifthome considers the property, its condition, and the costs and risks associated with purchasing it.

The online valuation is free and without obligation. It provides an initial indication of the property's value and gives you the opportunity to consider a concrete offer, with no obligation to sell.

When facing financial difficulties, the key is not to wait until your options become limited. Seeking information early allows you to assess the available options and make an informed decision.

Request a free property valuation

Swifthome can help you assess the value of your property and explore a direct sale solution, quickly and with no obligation.