People have a lot of money problems these days, but rent back could help. If you have been through any of the following, a sale-rent-back deal could help you get your finances back on track.
Let's say you own a house with someone else and you both have a few kids. The relationship is going well, but then it ends. One of you has to leave, leaving the other to take care of the kids and pay the bills. The problem is that the person who stays behind doesn't make enough money, but you and your partner both agree that you want to keep the family home so the kids are safe. This can be done through rent back.
When someone gets sick and can't work, another common situation in which a property rent back scheme could be helpful. That person falls behind on their mortgage and has other money problems. A home rent-back plan could take care of all of these problems in one easy step and put money back in your pocket.
When you're in a lot of financial trouble, you can also use the "sell rent back" option. If you are in debt, have not paid back a secured loan, and are behind on your mortgage payments for several months, a home rent back programme may be the only way for you to get back on your feet financially. After all, selling your home is better than having it taken away and sold by a lender, who might only get enough money to pay off the debt and leave you with nothing.
So, how can a house rent back scheme make you money? It's simple. First, look for a company that has a "rent back" deal for homes. The easiest way to do this is to look in the classified ads, the yellow pages, or the internet. Set up a time for them to come to your house and look at it. The rent-back company will figure out how much your home is worth based on its true market value. If your property is in good shape, it will be worth more than if it needs a lot of work.
The offer is the next step in the rent-back process. The property rent-back company will give you up to 85% of your home's estimated value in cash. You could wait and hope to sell your home for the full value, but the real estate market is unpredictable, and there's no guarantee that you could get a sale on the open market before your home is taken away. You can be sure of that with rent back. Most of the time, you get an offer within a few days of the valuation. If you agree, the deal can be done in less than a month.
Most people don't want other people to know that their home has been taken away by the bank. You can avoid this stigma if you sell your home first and then work out a deal with the company to rent it back to you at a fair market rate. Usually, you sign a lease for six or twelve months, but sometimes you can sign a longer one. No one needs to know that you sold your house, and some companies may let you buy it back when you're ready.
Once you get the money from the sale, you can pay off mortgage arrears, loan arrears, and other debts to get the lenders off your back. Then you'll have money in the bank, and your landlord will be in charge of keeping the house in good shape. That's another reason why rent back is a good idea.
