Sell and Rent Back Option Prevents Home Foreclosure Auction Sale By Oliver Wingrove At Isnare.com Ezine Articles

In case your home is facing foreclosure auction sale because you have defaulted in paying your monthly mortgage installments to your banker/ lender you have limited options on your hand. One of the options is that you could allow the lender to put your home on foreclosure auction sale; alternately you could either sell your home yourself or look at the possibility of choosing to sell the home and rent it back.

A number of specialist companies will be prepared to pay cash against your home which will enable you to wipe out the arrears of mortgage payments. Since your home has become mortgage free you will be able to avoid your banker/ lender taking away your home for the foreclosure auction sale. The specialist company will allow you to continue remaining in your home as a tenant by paying a certain amount of rent which is agreed to between the specialist company and you at the time of taking payment against your home. This rent normally will be lesser than the amount of your monthly mortgage amount and hence will be affordable.

If you are planning to sell your home and opt for renting it back you should consider a number of factors. Just like in anything else you will find that some of these factors are good whereas some others are bad. You must weigh the pros and cons of these factors and then only to opt for a sell to rent option. If you are taking the help of a buy to rent specialist you must ensure that he is ethical so that he gives you honest information about these factors to enable you to take the right decision.

Sale of your home through foreclosure auction sale or sale to the specialist companies deprive you the ownership of your home. However, selling to rent option to specialist companies has certain advantages over foreclosure sale. The first and foremost thing is that you don\u2019t have to vacate your home. You can still continue to live in that house. The second thing is that at the time of sale to rent there will be a clearcut agreement specifying the amount to be paid for sale and also the rental value of the property. The third point is that there will also be a clause in the agreement wherein provision is made for repurchase of the home by you if your finances improve in future to the extent of purchasing the home. The price for buy back will also be fixed for the property at the time of selling.

One of the major disadvantages in selling your home with a sell to rent deal is that the amount you get from the specialist company will be much less that of the market value. However you must realize that in this deal you are not paying any commission to your estate agent; also there is no fee paid to the solicitor. These two savings would offset the loss due to reduction in value. There is no guarantee that the home will be sold at a faster rate by entrusting the task to an estate agent; you will only find that the fees for estate agent and solicitors only goes on increasing. It might be possible that your home remains unsold for many months thereby forcing you reduce the price of your home to make people interested to buy it. By taking the option of selling to rent back solution you avoid becoming a victim of a broken chain. Broken chains might prevent the promise of sale at the very last minute and this is crucial when you want to buy the home back.

Another major advantage in opting for a sell to rent option is that you have the advantage of applying online for the deal; you will know within 24 hours whether this deal would come through or not. You will be offered a oral quote within 24 hours of applying and in case both of you are inclined for that price somebody from that company will visit your home and give you a written quote after valuation. The sale can be completed within a few weeks.

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