More homeowners are aware that they may have bitten off more than they could chew with the ongoing sub-prime crisis. Those who chose an adjustable rate mortgage which either already or will soon begin at a much higher interest rate are suddenly unable to afford the new payments. Bankruptcy, defaulting on the mortgage or just leaving the house and allowing it to go back to the bank seem to be the only options available.
Another choice is called the “rent back house" option. Under this program, you agree to sell your house to a buyer for a given amount, retaining the option of renting the house back from him. In fact, the buyer may agree to a “sell and buy back" plan in which he will actually sell the house back to you again when it becomes financially feasible.
To some degree, people tend to think of rent back house agreements as a great alternative, almost a no lose situation. Not only does the seller get to stay in their house, that they are selling, but the buyer gets rent for the time the sellers stay in the home.
This is a good option for people who are experiencing difficulties paying exorbitant adjustable-rate mortgages and well as others who need to get out from under their mortgage obligation. For example, a couple going through a divorce might have financial difficulties when trying to divide the equity of their home. They also may be deeply in debt due to unwise spending, have medical issues which are draining them financially, or any of a lot of different reasons.
Do some research on the web for “rent back house" options or speak to a realtor if you're a seller in this situation. You must speak to an attorney for transactions of this nature to ensure your best interests are protected and to assist you to get the best possible deal you can.
Consult with a realtor or research “homes on sale and rent back" if you are considering investing in this. This is a “buyer beware" situation if you decide to pursue this. Have an attorney involved and thoroughly check the buyer's background to see if they are reputable before proceeding any further.
An increasing number of homeowners are suffering in the sub-prime mortgage debacle. They may declare bankruptcy, go into default, or walk away and let the bank repossess the house. There is another way. You can choose the “rent back house " option. When you sell your house, get the buyer to agree to rent it back to you. He may even let you buy the house back eventually. This is called “sell and buy back". If you are considering investing in this option, search under “homes on sale and rent back ". Be sure you to get an attorney and check out the buyer to determine if they are reputable.