Beese Properties

Is the ghost of repossession haunting you?

The sell and rent back scheme was born into the property market around 2006 in response to the fear of thousands of homeowners losing their homes. The idea of sell and rent back your home is basically a rescue from repossession. If the homeowner is struggling financially it is possible to turn to an investor and offer their home for a quick sale but with the benefit of being able to stay living in the property paying rent.

About 6-12 months later, the sell and rent back scheme evolved to help the homeowner even further. As many people had built up a lot of equity in their homes over the years, a new buy back option was introduced. This provided a huge benefit as it gave the struggling homeowner the option to buy back their home once they had sorted out their finances and therefore keep the vast majority of the equity for themselves.

However, once the homeowner has decided to take this path of sell and rent back, it is very important to be aware of some potential problems and the way in which they can be prevented:

Fee Payments

All fees in the sell and rent back scheme are paid for solely by the buyer. These include the survey and the solicitor costs. Be aware of any fees the homeowner is being asked to pay. The main reason for this is if the sale fell through, any fees paid will be lost.

Sudden increases in rent

It is very important the tenancy agreement is thoroughly read before completing on the sale. Make sure the agreement states that the increases are a maximum of twice a year and in line with inflation. Many unscrupulous companies offer a decent rent for the first six months and then on renewal of the agreement, hike the rent so high that the tenant has no choice but to move out.

Sale of the Property

Be aware that once the property has been sold the new owner can sell the property at any time forcing the tenants to leave with just two months notice. If the sell and rent back scheme was a part of the sale it is very important to ask for a restriction of sale agreement. This agreement prevents the buyer from selling the property without written authorization from the tenant.

Although there can be some pitfalls along the way, there are also many advantages in opting for the sell and rent back scheme. The first and most important is the homeowner will not be repossessed. There is always the option of selling the property on the open market; however this can take up to one year for the sale to happen in the present market. It is imperative that the homeowner write their finances down on paper and check if this solution is viable.

Another advantage is there is no cost involved for the homeowner who at this point cannot afford any extra expenditure. A third advantage would be total discretion. No one will know and the homeowner’s daily life will not be disturbed.

With home repossessions on the increase and at the highest level in years, the sell and rent back scheme definitely is an option to be considered at the first symptoms of a financial problem rather than leave it to the last minute.

Beese Properties is a well established property company which offers all of the above. They look for the best solution for the homeowner and if the sell and rent back scheme is the best option they will base the rent on the current rental market in the area. For more information, visit them online at www.beeseproperties.com.

The economy has been shaken to its foundations, repossession is at the highest level for 12 years and estate agents are selling on average just one home each month. All the doom and gloom surrounding us and the property market has hit homeowners on their most sensitive issue – their homes.

Facing the reality of having to sell their homes to avoid repossession is a heartbreaking decision for hundreds of thousands of families. Even through these difficult times there are remarkable people who found a solution to avoid losing their homes.

Sell and rent back was the solution for thousands of families. They opted for a new and very different route in order to keep their homes from being taken by their mortgage lenders or secured loan lenders and forcing them onto the streets. Selling their homes and renting it back was the financial solution they were looking for. With their financial problems being sorted they are now well on their way to buying their home back. 

But is the sell and rent back option the right solution? The homeowner must be careful and think ahead. First step is to put finances on paper and analyze very carefully all the expenses and income. If the expenses are higher than the income there is without doubt a hole in your finances that need sorting.

Next step is to check if the sale of the property would make any difference in the finances. Will the sell and rent back option provide a break in the negative cash flow? Will all the debts be paid off if the sell and rent back option is the chosen path?  The homeowner must keep in mind that there will be rent to be paid instead of a mortgage so another close check in the finances is strongly recommended to make sure the rent is affordable.

There is the risk that the homeowner after deciding to opt for the sell and rent back scheme cannot afford to pay the rent and this will subsequently lead to an eviction.

It can do no harm at all to negotiate with the buyer about how much rent is to be paid. There is no point in agreeing to pay a certain amount of rent if further down the road you know you won’t be able to afford it.

Although there is no regulation yet for the sell and rent back scheme it is in the home buyer’s best interest to keep the families in their home as long as possible. The main reason for that is landlords want the property to have low vacancy rates. If the property has many different tenants it will mean some months of vacancy which in turn means no income for the landlord. There is also the added risk of a break in meaning more cost to the buyer. The bottom line is that it is in the best interest of the home buyer to have families living in their properties for as long as possible.

For more information about the sell and rent back scheme and how this may work for you, visit Beese Properties online at www.beeseproperties.com.

Home ownership is the most exciting prospect facing young couples and individuals today. Unfortunately, keeping your home is not as easy as it once was. The fluctuating interest rates, shaky economy and high cost of home ownership puts many people in financial jeopardy. If you’re having financial difficulties resulting in being unable to keep up with your mortgage payments, you may be facing foreclosure and repossession of your home. Fortunately, there are ways to stop repossession.

The most important way to try to stop repossession is to stay in contact with your lender. Explaining your financial situation to your lender can allow them to work with you in finding ways to help you including deferral of payments or refinancing for better loan terms. However, sometimes even with these options available, you’ll still find yourself facing repossession. Options you may want to consider to stop repossession is the sell and rent back or the sell and buy back option. Although this process may seem unfamiliar to many, it’s becoming a widely used practice with many advantages, the most obvious being able to stay in their home.

Sell and rent back involves selling your home to a cash buyer. When you’re facing repossession, you usually don’t often have much time from when the foreclosure process begins to when the actual repossession takes place. Keep in mind, however, that you can also stop repossession at any time by paying the arrears on your mortgage. Arrears are the amount that you are past due plus any late fees and fines. Once the repossession takes place, the bank will usually sell your home at public auction to the highest bidder. Many times the home is sold for less than you owe, leaving you still owing the bank money for many years. The best way to stop repossession is to sell your home quickly for cash. This enables you to pay off your mortgage and, often, have leftover cash to do with what you want.

Many sell and rent back companies are available today to help you. They purchase your home at less than the market value and rent it back to you. Although you will be losing equity by selling your home at less than market value, you’ll be able to stay in your home. With the sell and buy back option; you have the option to buy your home back when your financial situation improves. In most sell and buy back options; you can buy your home back below market value. Although this is the most common method used, each company may have a slightly different principle involved. For instance, one company may allow you to buy back your home at the same price they purchased it from you, while another may use a certain percentage such as 85% of market value. Whichever method they use, make sure you get this in writing.

It’s important to always have a contract in sell and rent back or sell and buy back options. Check out the companies you’re considering doing business with. Many unscrupulous companies will offer you full price on your home and a very low rent on your home. They’re not making any money this way so they’d have no reason to offer you this other than to rip you off. What they do is offer you a high price for your home, but any profit after paying off the mortgage will be kept for a few years while you’re renting from them. However, after a year or, possibly less, they evict you for some reason. Because you’re no longer their tenant, you’ve lost the rights to the profit from your home sale as well as the rights to buy back your home. Therefore, be sure of whom you enter into a sell and rent back or sell and buy back offer. Always, insist on a contract and insist they pay any legal fees.  If they’re a trustworthy company, they’ll agree to this. One method of determining if you want to do business with this person or company is to ask yourself if this is someone you would want as your landlord for a few years.

If possible, you may want to check with other people that have been involved with this company or person in a sell and buy back or sell and rent back procedure. The internet is a great source of information. Use it to your advantage and do some checking.

There are advantages and disadvantages to sell and rent back or sell and buy back options, so you may want to speak with an attorney for legal advice. In some situations, these options may be your only way to stop repossession and preserve your credit rating. With a good credit rating, you may be able to get a mortgage in the future to buy back your home.

Beese Properties offers all of this to their customers and more. They offer advice on ways to stop repossession. They base their rents on the current rental market, so they do not overcharge their tenants. They work with their tenants to find a solution which meets their needs and offer the buy back solution to them once back on their financial feet. For more information, visit them online at www.beeseproperties.com.

Many people are facing desperate times in the current housing market. Because of these desperate times, they are putting their homes on the market. After they have found a buyer, they often do not know where to go. Some are left homeless, while others have to go live in sub standard housing. It is important for these people to realize that there are companies that allow owners to sell and rent back.

First, it is important to understand what this means. There are cash buyers available that are looking for investment property. Certain companies match people with the cash buyers, who then purchase the home. After the home is purchased, they can then rent it back to the former occupant. This creates a situation where everyone can win. The buyer has investment property, and the person who did own the home still has a place to live.

Most property is available for this type of transaction. In fact, a lot of companies will buy properties “as is,” so owners do not have to worry about getting property ready for a sale. Also, they do not have to worry about moving in many cases. It allows for a situation that is not nearly as demanding as the typical real estate transaction, as there is less preparation and little hassle. That makes it very enticing for many people who are facing financial trouble and need help.

When looking for a company that will allows customers to sell and rent back, it is important to find a company that charges fair fees. Some businesses take advantage of the situation and charge high prices to their tenants. As people who are using this service already had to sell because they were in a financial situation, this is not a good idea. It is not going to help the people get back on their feet.

It is also important to find out how long the company will allow their tenants to stay in the property. Some places will evict their tenants after as little as six months. For many people, that is not long enough to get their finances in order. Other companies will allow people to stay indefinitely.

When searching for a company that allows people to sell and rent back, it is also important that an agreement is offered. When tenants have the option of putting it in writing, they know that they do not have to worry about being evicted. It makes the process much more secure for the tenants. A legitimate company is going to give their tenants the option of having an agreement in writing.

Beese Properties offers all of this to their customers and more. They base their fees on the market value, so they do not overcharge their tenants. They work with their tenants so they can stay on the property as long as they wish. Tenants also have the option of signing an agreement with them. For more information on how to sell and rent back, visit them online at www.beeseproperties.com.