Lake Havasu Home Listing

Posts Tagged ‘Right’

The economy has been shaken to its foundations, repossession is at the highest level for 12 years and estate agents are selling on average just one home each month. All the doom and gloom surrounding us and the property market has hit homeowners on their most sensitive issue – their homes.

Facing the reality of having to sell their homes to avoid repossession is a heartbreaking decision for hundreds of thousands of families. Even through these difficult times there are remarkable people who found a solution to avoid losing their homes.

Sell and rent back was the solution for thousands of families. They opted for a new and very different route in order to keep their homes from being taken by their mortgage lenders or secured loan lenders and forcing them onto the streets. Selling their homes and renting it back was the financial solution they were looking for. With their financial problems being sorted they are now well on their way to buying their home back.

But is the sell and rent back option the right solution? The homeowner must be careful and think ahead. First step is to put finances on paper and analyze very carefully all the expenses and income. If the expenses are higher than the income there is without doubt a hole in your finances that need sorting.

Next step is to check if the sale of the property would make any difference in the finances. Will the sell and rent back option provide a break in the negative cash flow? Will all the debts be paid off if the sell and rent back option is the chosen path? The homeowner must keep in mind that there will be rent to be paid instead of a mortgage so another close check in the finances is strongly recommended to make sure the rent is affordable.

There is the risk that the homeowner after deciding to opt for the sell and rent back scheme cannot afford to pay the rent and this will subsequently lead to an eviction.

It can do no harm at all to negotiate with the buyer about how much rent is to be paid. There is no point in agreeing to pay a certain amount of rent if further down the road you know you won’t be able to afford it.

Although there is no regulation yet for the sell and rent back scheme it is in the home buyer’s best interest to keep the families in their home as long as possible. The main reason for that is landlords want the property to have low vacancy rates. If the property has many different tenants it will mean some months of vacancy which in turn means no income for the landlord. There is also the added risk of a break in meaning more cost to the buyer. The bottom line is that it is in the best interest of the home buyer to have families living in their properties for as long as possible.

For more information about the sell and rent back scheme and how this may work for you, visit Beese Properties online at http://www.beeseproperties.com.