Around 2006, a system has been officially announced as a sellout, "and rent back" created due to the large number of homeowners going into foreclosure. The concept is what is used at home to protect homeowners. For those who have financial problems and danger to the loss of home was a real estate investor to buy the house and therefore would remain the owner of this work in the property renting the property again.
Then in 2007 to sell the idea of renting out, and by chance,making it advantageous for the home. Had to make the most significant heritage in the home, the owners do not want to lose all that money, which lead us to change this regime. Thus, investors were still buying the house rented and returned to the original owner, but as soon as finances caught, he or she buy the house back from the investor to hold the majority of the shares.
It 'important to know that if a homeowner decides to use, sell and rent arrears option, someProblem could arise. The following provides information on the prevention of these problems.
Payment of fees
Fees associated with this type of system are usually the responsibility of the buyer, things like inspection, lawyer, would include survey and other costs. Each of these fees or will rely on the house will be recognized and understood. When the sale was the subject of the home and the taxes paid, the money would be recovered again.
Likewith a loan or tenant, a lease agreement for the sale and rent back system should be read before signing and did not understand. According to the agreement must provide information to cope with any increase in fees, which increases the most, and how often rent could be increased. Unfortunately, some companies that buy real estate in foul trouble, the original house a small rent for six months, but once the agreement renewed offer, rents are jacked abruptlythe strength of the people.
Once an investor buys the property, the property can be resold at any time, and only two months' notice to the tenant. However, if the investor to sell and rent back scheme has worked as part of the purchase price by restrictions to protect tenants. In this case, the new owner of the sale of property, unless the tenant a written consent to prevent.
This does not mean that the challengesincurred, but with so many advantages of this system, which works well for most people. Since the house is now someone new and the original owner of the tenant in possession is that the house does not close. Even if something happens, and the house was put up for sale on the open market, which could easily sell for a year or more. Before he was involved with the sale and rent arrears scheme, you should see exactly for your finances, whether it is realistic.
The original owner alsoto pay for anything and given the financial situation of the problem, which helps. Best of all, as the owner, a tenant does not move, family, friends, neighbors and do not know the situation, make it private.
Unfortunately, the number of families is being foreclosed on will continue to increase and, in fact, the figures are the highest in a very long time. To avoid losing at home against exclusion and you want your property to sell and rent back scheme could continue,the answer you were looking for, but you must act now.