All About Sell and Rent Back Scheme

All About Sell and Rent Back Scheme


Many times people get stuck in difficult financial crunches, in which they have no option but to sell off their house. Selling your own house, especially in this desperate way, is a very tough decision to make. Such situations generally arrive when a person is unable to payback their mortgage payments. However, many mortgage rescuer companies now offer a solution to such problems, 'Sell and Rent Back' scheme.

What is Sell and Rent Back Scheme?

In this scheme, a mortgage rescuer company buys a home from people desperate to sell their house fast for cash. These companies buy the house on a discounted price and rent out the house back to the borrower at market price. The deal takes place quietly without any of your neighbour even getting a hint about it. The borrower gets the advantage in terms of the overdue debts. But there is also a disadvantage; the house is purchased on a price lower than the market price, especially by unregulated firms.Mostly, the borrower gets 75% to 85% of the money. The price is less than the actual cost of the house, but for a person desperately in need of money, it comes as a God sent help. The cash payment can be used by the borrowers to take care of his/her financial crunches or settle all the mortgage payments. Many mortgage rescuer companies also offer the borrower the possibility of buying back his/her house after few years or when they are financially stable enough to purchase it back. However, the borrower can only buy the house back on the then current market prices. The paper work and legal matters are taken care of by the company and are completed within the few days of the deal. Also mostly payments of taxes, like sale tax, etc are also taken care of by the company. However, some borrower is taken for a ride in such deals. Some companies and real estate agents keep an open eye for people with desperate need of money and huge unpaid debts and mortgages. They take undue advantage of the helplessness of the borrower by quoting a very low price for their house. The borrowers are in dire need of money and reluctantly accept the offer, which means an instant profit for the company.

Few Words of caution:

Internet has made it easier for these companies to grow their tentacles and clutch such helpless people. They find such people who are in difficult financial crunches and offer them to sell to rent back. The only way to get best solution is to approach reputed and big scale companies. Approach the companies who have a good reputation in the market for offering appropriate price for the properties and offer a future prospect of buying back their house. Do a proper back ground research of the company and approach previous borrowers who have had experience with the company to get best price for your house in difficult situations.

For any help on Sell and rent back, check out the info available online; these will help you learn to find the Sell to rent back!

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