Thinking about Selling and Renting Back? DON'T DO IT

March 5, 2012 - PRLog -- Sell & Rent Back: Is There A Better Option?
For some people with mortgage problems, selling to rent back may look like a good option. However but we believe for most who take this path, it's a panic measure that is sooner or later regretted.

What is Sell to Rent Back?
Sell and Rent back schemes are where you sell your home and agree to rent it back at the full market rental rate.

Why do people sell & rent back?
I'm most cases, the answer is panic and a lack of understanding of other options. Selling and renting back means you don't have to move house - not right now at least. It's better for family stability, but for how long? If you can't afford your mortgage, for how long could you afford the rent? You could soon realise that your mortgage company was more open to negotiation than your new landlord.

What The office of Fair Trading says
In October 2008, the OFT (Office of Fair Trading) raised concerns that the sell and rent back sector is unregulated. We as a company are regulated. We need a licence to give debt advice and then take a fee from consumers purchasing services from us based on this advice. Regulation exists to protect consumers from being ripped off.
The OFT conducted a study into the sell and rent back sector, the findings of which include:
•   Misleading details, with some tenancies only guaranteed for 6 to 12 months although the tenants believed they could stay in their homes for years.
•   Some landlords raise the rent substantially and quickly evict those who struggle to pay.
•   Many former homeowners who become tenants lost their homes anyway, because the new owner defaulted on the mortgage and the property has been repossessed.

The Council of Mortgage Lenders predicts that there will be 45,000 repossessions in the UK in 2008. The OFT says there were better options for some of these consumers rather than letting themselves get repossessed. We agreed and aim to where ever possible, prevent a repossession.

Sell it yourself
You'll be much better off selling the property yourself and starting afresh in a new home. Wouldn't you rather have that money towards your next home or clearing other debts.

Can't find a buyer?
If you have a upcoming repossession hearing or eviction date, but are making reasonable attempts to sell the property then the judge needs to understand this. We can get the repossession order suspended giving you more time to get a fairer price for your home. Calling us today could save you thousands of pounds.

For immediate help, visit http://www.essex-homebuyers.com

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Essex Homebuyers are a quick sale property buying company who buy direct from homeowners who need a quick sale. They guarantee to make an offer to buy your house regardless of its condition or location anywhere in the UK.