Selling Your Home And Then Renting It Back Again
As the global economic crisis continues, and in the face of rising interest rates, many homeowners have begun to ponder the possibility of using a sell and rent back company to help pay off large delinquent debts and still remain in their home. But is using a sell and rent back company always a good idea? Is it ever a good idea? In this article we will define what a sell and rent back company does, along with some tips to help you make a decision on whether or not a sell and rent back company is the right strategy for you.
So what exactly is a sell and rent back company and what do they do? To put it simply, a sell and rent back company is one that targets overstretched homeowners, offering to buy their house at only 50-70 percent of the current market rate. Needless to say this can be a real advantage for someone who needs to pay off debt and still remain in his/her home, but it does have several drawbacks as well.
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.
The disadvantages of using a sell and rent back company are many, but perhaps the most glaring drawback is that the seller is forced to sell for much less than the home is worth, and the rent he will then pay will be akin to paying the buyer’s mortgage. Some sell and rent back companies use pressure tactics to coerce the seller to sell quickly, hoping to make the most in profits. Customer service and quality service with these companies depends on which one you use, but most don’t take into consideration how hard this decision is for you.
In summary, using a sell and rent back company is not the wisest fiscal move you could make, but if you’re struggling with debt and you feel this is the only way out, you might want to ask around and see if there is a rent and sell back company you can trust.
Precise Magazine and Whole House Media are great places to read more articles.
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