Sell And Rent Back Scheme - The Quickest And Best Way To Avoid The Trauma Of Having Your House Repossessed
Mortgage arrears are on the rise and with them the threat of house repossession. Figures from the Council of Mortgage Lenders (CML) for 2006 showed a 65 per cent increase in the number of repossessions over 2005, giving a total of 17,000 property repossessions last year. The number of house repossessions is expected to rise again this year and next, driven by rising rates of interest, which have put pressure on people’s ability to repay their mortgages. Recent research showed that hundreds of thousands of people miss at least one mortgage payment each year.
Redundancy, job loss, death of a love one and illness are all unexpected circumstances which can leave you in this situation. It can be tempting to bury your head in the sand when mortgage company writes to you about repaying your debt. Make every effort to repay your debts and keep talking to your mortgage company. Working out a revised payment schedule might help you to keep your house.
If the mortgage company insists on starting house repossession proceedings, there is an option which might appeal to you; the rent back house scheme. Sell and rent back offers a means for you to sell your house quickly, repay your debts and still have a roof over your head.
With a sell and rent back property scheme, the value is in the speed of the process. You call a rent back company and get a valuation and within days you have an agreed sale price. This is usually around 80-85 per cent of the market value. The rent back company pay your legal fees and your home sale can be completed in a month or less.
Also, you can reach a buy back agreement with the company’s rent back arrangement which sets a price at which you can purchase your house back when your finances are in better order. For many people, this scheme is the quickest and best way to avoid the trauma of having their house repossessed.