Sell And Rent Back To Avoid Losing Your Property

Posted by admin on September 14, 2009 under Sell and Rent Back | Be the First to Comment

If you are facing the possibility of a mortgage lender or bank repossessing your property, don’t despair, there is a way that you can save your home long term.

The solution is to sell your home and then rent it back from the purchaser. Of course not everyone is prepared to buy a house and then let you stay in it. But companies that specialise in sell and rent back schemes do just that. As long as you sell to a reputable company that gives you the option of buying the property back at a later stage, you stand a good chance of keeping your home long term.

The sceptics warn that sell and rent back companies are deliberately targeting people in trouble. Of course they are. That is the service that they are offering – to get people in financial trouble out of trouble. They also warn that you will be paid less than the property is worth but will be expected to pay a rental in line with market values.

Think about it this way. If you really are on the brink of losing your home and there is absolutely no way out, your home will be repossessed and you’ll probably end up with a forced sale at auction. This way you will have zero control and you certainly won’t get market value for the house. There is also no guarantee that the price you will get from a forced sale will cover your debt and the additional expenses you will inevitably incur. Then you’ll have to find somewhere else to live and you’ll have to pay rent at market value. You’ll have the upheaval of packing up and moving, and you’ll never be able to buy the house back.

In nutshell, you’ll have to start again from scratch.

If you’ve ever been in a situation where your property has been repossessed, you will know how traumatic this can be. More so when the property in question is a home in which you are living. It really is extremely difficult to function normally in these circumstances, a factor that often compounds the problems.

While it is true that serious mortgage arrears don’t happen overnight, it is also true that a negative balance can accumulate very quickly. For this reason it is essential to maintain contact with your mortgage lender and try to avoid getting to the stage of repossession. But we aren’t talking about the sell and rent back solution for someone who has simply fallen a little behind in payments. We are talking about people who are desperate and don’t have any other option.

Carl and Rosie, who live in Exeter, were at the end of their tether when they looked at the sell and rent back option. “We got ourselves into a terrible financial situation,” they said. “We tried all of the usual things, like talking to the bank and citizen’s advice etc, but no one offered any real solutions.” Then they heard about Beese Properties. Convinced the company was reputable, they accepted the offer to purchase and are currently paying a rent that is half what their mortgage payments used to be. They were right.

“We would not hesitate in recommending Beese Properties for Rent Back.”

Ron and Clarissa live in Brighton and they also approached Beese Properties when their financial situation became desperate. In fact they were about to be evicted from their flat. Representatives from Beese Properties were able to stop the eviction and agreed to buy the couple’s flat in a sell and rent back deal. The sale enabled the couple to clear all their debts and “get on with our lives debt free”.

“We are so happy we found Beese Properties,” they said.