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My financial condition right now is miserable. I want to sell my house for some quick cash, and plan to rent it back immediately. I was wondering if this is a valid solution or I should look for a small rented apartment somewhere else.
Since we have been living in the house for last 1 year and the place is quite close to my kid’s school, I do not want to leave this place.
My question is: if I work with a cash buyer and request a rent back, will they offer me lower price? What are the other ways to stop repossession, if any?
2010-10-3 10:14:48
Beware of the rent back option, as many of these companies will allow you to stay at the agreed rent for 6 months, and will then attempt to hike up the rent often because they have a buyer for the property.
Seek legal advice before pursuing this option. Speak to the consumer credit counselling service first (a registered charity) or national debtline.
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/?gclid=CLuyvZmHnaQCFYlg4wodHBsJEg
2010-10-3 10:14:48
If in the UK, make an appointment ASAP to obtain advice from Citizen’s Advice Bureau.
Have you negotiated with the Lender to pay Interest only while in a financial hole?
2010-10-3 10:14:48
Make sure you work with a trusted buyer. Cash buyers can help you get quick cash for home so that you can stop repossession. Rent back arrangements are also available with some service providers.
Sometimes, the selling price may depend on the type of the deal, for example, if you opt for rent back scheme, the buyer may offer you a lower price. You should talk to a property buyer right now to know the best option.
If you go for rent back plan, you can buy back the property too I guess. It seems that you are not comfortable to leave the locality where you are living – sell and rent back sounds to be a good option to stop repossession for you.
Make sure you work with a trusted buyer. Cash buyers can help you get quick cash for home so that you can stop repossession. Rent back arrangements are also available with some service providers.
Sometimes, the selling price may depend on the type of the deal, for example, if you opt for rent back scheme, the buyer may offer you a lower price. You should talk to a property buyer right now to know the best option.
If you go for rent back plan, you can buy back the property too I guess. It seems that you are not comfortable to leave the locality where you are living – sell and rent back sounds to be a good option to stop repossession for you.
2010-10-3 10:14:48
Citizens Advice Bureau, A.S.A.P.
Why are you wanting to sell, it is not a good step, hang on in there. Put all your efforts into keeping the house. Don’t think the kids are too young to understand, they will pester but if you tell them it means moving if you don’t pay the mortgage they will change their tune.
Children like stability more than the latest fad. How are you going to pay the rent, with the money from the sale, what happens when that runs out?
Answer, well of course you hope your situation changes, so why not put things on an even keel now, and retain the house.
I was in a worse situation (no job, debts enough to pay 50% deposit on a house, Mortgage to pay, owed 2 months wages from previous job, the firm had gone bankrupt) I am still in the house I was then, I have even got enough money that if the car broke down I could pay cash today, not that I would, but get yourself turned around.
A letter from C.A.B. carries a lot of wieght, I recently upped my credit card payments so that it is paid in 10 years, not the 2,000 previously??