subject: Sell And Rent Back - There Is No Need To Move House [print this page] Sell And Rent Back - There Is No Need To Move House
Overstretched homeowners are anything but a new phenomenon, but recently the number of people who fit this category has grown exponentially due to the continuing global economic hardships. As a result, many sell and rent back companies have begun to surface recently in an attempt to take full financial advantage of the situation.
The truth is that overstretched homeowners are being targeted by these companies and there is no end in sight to this trend. In this brief article we will examine the role of a sell and rent back company, and take a closer look at who should and should not enlist the services of one of these companies.
A sell and rent back company, as the name implies, is a company that will buy your home quickly, usually well below the market rate, and rent it back to you based on the current rental market rate. Sell and rent back companies typically pay no more than 60-70 percent of what your home is worth at the time, sometimes less, and many will provide you with the option to buy your house back at a later date based on the current market rate.
Using a sell and rent back company certainly has a few benefits. If you are buried in personal debt, in arrears on your mortgage loan and you fear you may lose your house anyway, a sell and rent back company can at least help you recoup some of your money from the purchase of the home, and in addition, you'll get to stay in your home as long as you make your rental payments to the sell and rent back company.
If you're thinking about using a sell and rent back company you should first and always do some research, looking into not only the advantages of this type of arrangement, but the possible pitfalls, too. When you do business with a sell and rent back company, don't be fooled into thinking this is anything but a business transactionone that the buyer will profit from and not you. Sell and rent back companies target people who are struggling with debt and they profit from their misfortune.
Nobody wants to completely lose their house if they can avoid it, but avoiding this may be difficult for those people who have lost their jobs or become muddied in debt. In these instances, a sell and rent back company might be just the option they need to stay in their home foreveronly this time as a renter.
