Don't Lose Your Home To Repossession, Sell And Rent Back

Mortgage arrears cause a huge amount of worry; even one payment may mean you are on a downward spiral that may lead to you eventually losing your home

. There are numerous reasons why homeowners may, through no fault of their own, fall behind on their mortgage repayments. One of the biggest reasons however, is if they lose their main source of income after becoming unemployed.

Of course, if you do fall slightly behind with the mortgage repayments and contact the lender they may be willing to allow you some time to catch up. Hopefully, you will find work quickly and be able to repay the arrears and continue meeting your mortgage. However if you cannot the lender has no choice but to take repossession of your home through the courts, unless you are able to come up with money. You can of course try to sell the property, but with the housing market being unstable, this may not be easy. You could also consider selling and renting back.

When you choose to sell your home to rent back you sell the property for an agreed sum, typically slightly less than the full value of the property, and then pay monthly rent. You do not have to move out of the property and nothing changes except that you stay in the property as a tenant and not the owner. Rent is usually more affordable than your mortgage repayments and so manageable. Typically, companies also provide you with the option of being able to buy back the property at some time in the future. If you take this option you of course become the homeowner in the future, which provides time for your circumstances to settle down and for you to get back on your feet again.

When you choose to sell and rent back this way you are able to sell very quickly for a guaranteed sum, often in as little as a few weeks. If the lender has already begun proceedings to take you to court, then the company you are selling your home to may be able to help you to stop proceedings whilst the sale goes through.

It is very easy to apply for a rent back solution. Usually you are able to leave your details, which may include the type of property, the location and how much the property is worth. Someone then contacts you, usually within 24 hours and gives you an idea as to how much your home may be worth. If you are happy with this offer, someone will come and value your property and work out the final figure, how much rent you have to pay, and what you would have to pay to buy back the property. If you are struggling to meet your mortgage repayments or you have fallen behind into arrears and there is no hope of catching up, you may wish to consider selling and renting back as an option.

by: Oliver Darraugh

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