If done correctly Sell To Rent Back Agreements could one of the best solutions to help you avoid home repossession.
The credit crunch and economic recession caused the number of bank repossessions to suddenly spike. Homeowners found themselves over indebted or jobless and were unable to repay their loans.
As a result a number of programs have since been developed to assist homeowners who are struggling to meet their debt commitments. Sell To Rent Back Agreements, Debt Counselling, Distressed Sales and Bank Assisted Sales are just some of the solutions available.
What Is A Sell To Rent Bank Agreement?
These agreements or sales are often initiated by client are who facing repossession, or who are struggling to meeting their debt commitments.
Typical you would sell your property to a property investment company, or sometimes an individual, who then agrees to allow you to rent the property for a period until you are able to buy the home back from them again.
What Are The Benefits?
The most appealing benefit to this whole process is that you would need to relocate your family, or face the embarrassment of having your property repossessed by the bank.
Also, when your financial situation turns around again you have the opportunity to buy your home back from the investor.
What Are The Disadvantages?
The biggest disadvantage to Sell To Rent Back Agreements is the fact the you are going to have to sell your property at a greatly reduced value.
Sale And Rent back companies typically will offer to purchase your house for far less than its market value, sometimes 60% or 70% below market value.
Sell To Rent Back Companies In South Africa