Sell and Rent Back Schemes

Posted by admin in PropertyFeb 22nd, 2009 | Comments Off

There is an increasing number of sell and rent back schemes on the internet. Companies that offer such schemes serve most markets, but their primary target market is those people who have defaulted on their mortgage repayments and face foreclosure. If the mortgage company is threatening to take your home because you have not kept up your mortgage payments, then a company that operates a sell and rent back scheme, may offer to buy your home before the foreclosure date. Normally you will receive more than enough money to pay off your mortgage and mortgage arrears, these companies will then rent you back the property that they have just bought.

When you use a sell and rent back scheme, you will not have to move if you don’t want to because the company can lease, or rent the property back to you. Some schemes have a process whereby once you have been leasing the property for five years, or whatever time span is stipulated, you could be offered the chance to buy your property back. While these schemes may seem the ideal solution to those people who are threatened with foreclosure, you have to be careful which company you approach, as some people have entered sell and lease back schemes and find themselves in a worse position than they were when threatened with foreclosure.

Getting a Mortgage

Posted by admin in MortgagesFeb 20th, 2009 | Comments Off

People who want to buy their own home will usually have to find a lender who will give them a mortgage on your property. A mortgage is not a loan in the traditional sense, as the lender has an interest in the property because that stands as surety for your loan. If you get a mortgage to buy a house and then for some reason, default on your loan, you could be at risk of losing your home. When you are finding it difficult to keep up with your mortgage payments then you should seek help as soon as possible. If the lending institution has to foreclose on the property and you lose your home, it could be virtually impossible for you to get a mortgage in the future.

Those people who do default on their mortgage and don’t ask for help as soon as they realise they are in trouble, really could lose their homes. If you are threatened with foreclosure on your property then one way to preserve your credit history and prevent the lender taking over your property is to find a sell and rent back scheme. Sell and tent back schemes are run by companies who pledge to buy your house within a week or two of you approaching them.