Are you finding it hard to pay your mortgage loan? Then you might be considering using the “sale and rent” back option. This is when huh sell your house to a cash house buyer or a private company and rent it back. Sales and rent back schemes are very complex and risky and you should be sure if there are no other options before using this scheme.
Risks of using sale and rent back schemes
Sales and rent back schemes is not the best option because:
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You’ll sell your home far below its value price
Sales and rent back companies buy houses at a lower price compared to it original market value. This means you’re the one to lose even though you’re selling your house because of lack of funds. However, your mortgage lender can choose to not let you sell your house if the price you’re offered is way below what you owe on your mortgage.
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You’ll be renting it back which means the new owner may choose to evict you.
When you choose to sell your home and rent it back, it means your home now has a new owner and you’ll sign a contract of tenancy. When your agreement is over and your contract has come to an end, your landlord can choose to evict you as they please. So you’re at a risk of eviction if you choose to go through this process. You can get evicted if you go contrary to any agreement made on your tenancy agreement or your new landlord also has to sell the house to pay any debts he owes.
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You might not be able to claim bankruptcy
Using the same and rent back scheme, you may face problems when you want to apply for a debt relief order to write off your debts or apply for bankruptcy.
Even you can be denied a debt relief order if you sell your house for lower than what it’s worth.
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You might not be able to claim benefits
The government can stop you from claiming some benefits if they discover that you sold your home for a lesser price than it’s worth
Rules sale and rent back firms must follow
There are rules that sale and rent bank companies must follow:
- The companies are not allowed to use your letter box for any promotional campaigns
- They must come into an agreement of at least 5 years of tenancy
- They must allow you u get a valuation for your home or arrange for it if you haven’t gotten one
- They must confirm if you’re able to enter an agreement with them and how that can affect your right to certain entitlements.
If a sale and rent back firm fail to follow these rules, you can complain to the financial ombudsman service.
How To Sell Your House Fast Oklahoma City
The best way to sell my house fast Oklahoma City is to sell to a reliable cash house buyer. At Best Offer OKC, we can make arrangements to rent your house back to you after selling it to us. Also, we buy houses OKC at the best price and we will not buy your house below market value.
We buy houses Oklahoma City for cash and we ensure the process is smooth and hassle-free.
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