Homes For Sale : How To Preserve Your Property

You’re not alone if you’ve spiralled into a terrifying financial situation. Today’s housing and job market are quite volatile, and as a result, many people throughout the nation are facing repossession and bankruptcy due to no fault of their own. While it may seem as if there are no options to get out of your situation, there is an option: selling your house and renting it back.

Just 2 years ago, single mother Clare Wilson was in the same situation. When she became disabled due to very severe arthritis, she was not able to hold a job. Each month she would get just a small amount of income from her disability benefits. This was not enough to pay her mortgage, or properly care for herself and her 2 teenage sons.

After struggling with massive bills and debts for three years, Clare felt that there were no more options open to her. She was considering selling the house she had lived in for thirty years and moving herself and her two boys in to stay in a cramped place with relatives. Even most rental prices in her area were just too high, and there were no homes for sale within her price range - she was at the end of her rope.

An old friend called her, just as her house when into the repossession and foreclosure process, and told her about a way to sell and rent back her property. This intrigued Clare, and after a few inquiries, she realized this option would be viable for her. She would be able to stay in her beloved home, and someday own it again. A “home for sale” sign would not be adorning her yard!

Here’s a quick example of how the sell and rent back process works. First, Clare sells her home to a real estate firm that specializes in repossessions or foreclosures. After sitting down with a representative from a company, she determined a monthly rental rate that worked for her. She choose a rate that was low that she could get her house back in a reasonable time, without risking her ability to provide necessities. The properties to rent back, such as Clare’s house, would rarely undergo a change of hands.

Every time she made a monthly mortgage payment, she was building up equity in her home. Her choice was to continue paying a monthly rent for a long time, possible until the home was paid off, or paying just long enough until her situation improved and she was able to buy back her home. During the time period she is paying rent, it is possible that there would be a lower going rate in the local neighbourhood. Either option gave her the chance to continue living in her home for as long as she wanted to, with the possibility of the home becoming truly hers on paper. This way she could still sell the house, and rent it back without ever having to have the hassle of moving. And best of all, neither her neighbours or anyone else knew of her situation.

There were no other nearby homes for sale in her price range. Fortunately at the time that her home was coming under the foreclosure process a friend of Clare gave her a call to tell her that she had figured out how to sell and rent back her home. The properties to rent back will usually not go through a change of hands. That way the she managed to sell the property to rent back without ever having to move out of the house. And her neighbors were none the wiser, let alone any one else.