As the popular saying goes, there is always a first time. This holds true in terms and buying and selling properties. Some may worry if they are doing the right thing or making the right decision. Here are some tips that can help first-timers in this field.
A few years back, a payment alternative was being utilized by those who are going into foreclosure. This option was referred to as the "sell and rent back" option. This was conceptualizing to protect homeowners who are struggling financially and who are likely to lose a home. Simply put, the homeowner working with a property investor willing to purchase the home can rent back the property and be able to obtain ownership of his sold property at a later time. Furthermore, this scheme got revised allowing the previous homeowner to be able to buy his property back and also retain majority of the house's equity. However, there are a number of factors which needs to be considered before taking advantage of this option.
For one, any fees or expenses associated with this alternative will be the responsibility of the buyer. This includes but not limited to, inspection, maintenance and many more. This means that any charges placed on the homeowner needs to be acknowledged and understood and if the sale should push through, no money will be recouped. Any agreements between the two negotiating parties should be clearly read and comprehended before being finalized. Furthermore, agreements should include information indicating any price increases, maximum increases in a given period and how often can it be done by the homeowner. This is to prevent any dishonest companies to exploit customers.
In addition to the aforementioned facts, investors who purchase the property have the rights to resold it at anytime to anyone, giving the current tenants a two month notification unless the agreement between them is a sell and rent back. This means that restrictions will always apply and the only time that the property can be sold again to another party is if its part of the original contract. To sum it all up, the "sell-and-rent-back" option is a reliable option but it does not mean that its foolproof. However, with such benefits, one would not really notice the drawbacks since this will definitely be profitable to the homeowner and regardless of who is taking responsibility for payments, the house do not have to go into foreclosure.