The following post on sell and rent back concepts is from the friendly experts at Astoria Oregon Real Estate. Are you are looking to move to our beautiful area? Are you looking to sell your property and upgrade? Kyle and Alex have the answers you need!
A sell and rent back scheme involves that person selling a home to a property cash buyer for about 75% of it’s market value. Whilst selling a house in a falling market can take many months, this isn’t the case with a sell and rent back.
Sell and Rent Back can Stop Repossession
It is possible to get a quick house sale and stop repossession, provided that at least 25% home equity is available. Repossessions can even stop when there are just hours left to go. The availability of a property cash buyer means that the court is willing to intervene. The entire process works privately and the neighbours won’t be aware of what has transpired.
A Quick House Sale at Below Market Value
Whilst a sell and rent back ensures a quick house sale, most property cash buyers will only offer up to 80% of market value. Those selling a house may be able to get a better price on the open market or even at auction. However, those selling a house won’t have to pay estate agent and legal fees. It is also said that many estate agents bump-up valuations to entice homeowners into selling.
Sell and Rent Back Schemes and Money Problems
Homeowners regularly choose a sell and rent back scheme. A cash lump sum helps them to clear personal loans, overdrafts and credit card bills. However, the removal of money problems and the provision of a lower monthly rent can make life more affordable for families.
Regulations and Assured Shorthold Tenancy Agreements
There is currently minimal regulation with respect to sell and rent back schemes. Thusly, this means that different companies have varying terms. Some property cash buyers are looking to establish long term relationships with tenants. Others choose to invoke assured shorthold tenancy agreements. Sadly, this could mean that a tenant is removed from their home in as little as 6 to 12 months.
A sell and rent back scheme is an excellent way to stop repossession. Anyone facing repossession should seek a property cash buyer, provided sufficient home equity is available. However, homeowners that aren’t in immediate financial peril should seriously consider selling a home on the open market to get a better price.
Those struggling to prevent property repossession should check to see if they have an unlawful mortgage agreement. This could mean that a homeowner receives compensation. This also applies to illegal loan agreements and unlawful credit card agreements.
Astoria Oregon Real Estate is the premier location for properties and information in the Clatsop County, Oregon area. Lead realtors Kyle Uchitel and Aleksandr Vasser are ready and waiting to assist new buyers or sellers in getting the most out of their property purchase or sale. Let Astoria Oregon Real Estate guide you on your journey!