Rent Back House: Homes On Sale And Rent Back

An increasing number of homeowners are in dire straits in the wake of the sub-prime mortgage debacle. They have adjustable rate mortgages which have been or will soon be set to an elevated interest rate, and they find that they will not be able to pay the increased monthly amount. They are going under financially. There are not many alternatives open to them. They can declare bankruptcy, they can go into default, or they can simply walk away and allow the bank to repossess the house.

Another choice is called the “rent back house” option. Under this program, you agree to sell your house to a buyer for a given amount, retaining the option of renting the house back from him. In fact, the buyer may agree to a “sell and buy back” plan in which he will actually sell the house back to you again when it becomes financially feasible.

Rent-back agreements are a “win-win” situation to an extent for all parties involved. The seller stays in the house, which does not disrupt their lifestyle and is comforting. The buyer on the other hand, acquires a steady form of income and real estate and a possibly buyer once their financial situation improves.

This is a good option for people who are experiencing difficulties paying exorbitant adjustable-rate mortgages and well as others who need to get out from under their mortgage obligation. For example, a couple going through a divorce might have financial difficulties when trying to divide the equity of their home. They also may be deeply in debt due to unwise spending, have medical issues which are draining them financially, or any of a lot of different reasons.

If you are a seller who may encounter this type of situation, you ought to ask a realtor, or search the web for “rent back house” options. For this type of situation, it is imperative that you use an attorney to protect your real estate interests and to help you negotiate the best overall deal for you.

Consult with a realtor or research “homes on sale and rent back” if you are considering investing in this. This is a “buyer beware” situation if you decide to pursue this. Have an attorney involved and thoroughly check the buyer’s background to see if they are reputable before proceeding any further.

Banks make house loans very difficult to pay back by using adjustable interest rates. There is a rent back house option for people to use so they don’t lose their houses. It works because of the sell and buy back feature, which allows the seller to make a deal with the buyer. The buyer agrees to rent the house out to the seller, perhaps eventually letting the seller buy it back. This option lessens the chance of the seller losing their house. If you are interested in this type of home, do a search for homes on sale and rent back, but make sure you check the buyer’s reputation first.

- Peter Shukla