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Avoid Repossession With a Sell to Rent Back Option
- By Oliver Wingrove
- Published 11/4/2008
- General
Oliver Wingrove
Oliver Wingrove is an expert home buying and selling marketing professional with years of experience in various industries such as Cash For My House, Real Estate Finance & Real Estate mortgage.
View all articles by Oliver Wingrove
Repossession is the one thing that all homeowners have on their minds when things get tough. Some homeowners find themselves struggling to make the mortgage repayments if they become ill and have to take time off from work or suffer an accident. Some find themselves unemployed due to being made redundant. In all of these cases mortgage arrears that mount up past a couple of repayments could mean the lender would take you to court and you could lose your home.
If you are faced with the lender taking you to court or court proceedings have already begun then it might not be too late to do something about it. Even better you might be able to remain in the property. You could be forgiven for thinking that all of this sounds too good to be true but it could happen if you look into selling your home and choosing to rent it back.
There are specialist companies who offer to buy homes and then allow you to pay affordable monthly rent to remain in the property as the tenant. You are able to find an ethical company online who will work with you every step of the way to reach an agreement for you to be able to remain in the home. They will offer you 80% to 85% of the property value and first provide you with a verbal quote to give you a rough idea of how much you could sell your home to them for. If the offer sounds reasonable then the company will come to view the property and make you a written offer. At this time they will explain what the deal entails, how much you would have to pay in rent each month and state how much you would be able to buy back the property for, if and when your finances improve.
At first glance around 80% of the value does not seem fair; however you do have to take certain factors into account. The first of which is that it does provide a way for you to remain in the property and in the future you could buy back. If your home means everything to you and you cannot bear the thought of losing it then this could be worth the loss. Another consideration to take into account is that your home will be taken by the lender and then sold. It will go on the market and it could be there for many months, you might not get the asking price for the property and could have to drop the price in order to get interest. Finally if you decided to sell the property yourself to avoid eviction then you would have to pay out for fees associated with a solicitor and estate agent and these can add up to a considerable amount. It doesn't cost anything to get a quote with a buy and rent back company so it is worthwhile at least looking into this as an option.
If you are faced with the lender taking you to court or court proceedings have already begun then it might not be too late to do something about it. Even better you might be able to remain in the property. You could be forgiven for thinking that all of this sounds too good to be true but it could happen if you look into selling your home and choosing to rent it back.
There are specialist companies who offer to buy homes and then allow you to pay affordable monthly rent to remain in the property as the tenant. You are able to find an ethical company online who will work with you every step of the way to reach an agreement for you to be able to remain in the home. They will offer you 80% to 85% of the property value and first provide you with a verbal quote to give you a rough idea of how much you could sell your home to them for. If the offer sounds reasonable then the company will come to view the property and make you a written offer. At this time they will explain what the deal entails, how much you would have to pay in rent each month and state how much you would be able to buy back the property for, if and when your finances improve.
At first glance around 80% of the value does not seem fair; however you do have to take certain factors into account. The first of which is that it does provide a way for you to remain in the property and in the future you could buy back. If your home means everything to you and you cannot bear the thought of losing it then this could be worth the loss. Another consideration to take into account is that your home will be taken by the lender and then sold. It will go on the market and it could be there for many months, you might not get the asking price for the property and could have to drop the price in order to get interest. Finally if you decided to sell the property yourself to avoid eviction then you would have to pay out for fees associated with a solicitor and estate agent and these can add up to a considerable amount. It doesn't cost anything to get a quote with a buy and rent back company so it is worthwhile at least looking into this as an option.
