Are you struggling to pay your mortgage? Have you ever heard about Sell your home and rent it back solution? If so, then it is a great option to think about in case of an emergency. A sale and rent back is a financial agreement typically run by a private company. It also called buy back or sale & leaseback agreement. It lets you sell your home to that particular company and then rent it back from that firm as a tenant.
In general, you would sell your residential property to the firm at a lower price. The private company can be a broker, firm, or a private individual. When signing up for this HELOC alternative, you need to understand certain details before moving forward.
If your financial situation is not great, and you’re turned down for a home equity line of credit (HELOC), then consider an alternative to HELOC, Sell & Stay. In the sell and stay model, you sell your home to a company that will become your landlord. Typically the rent price is determined in your sale agreement. There’s no broker or real estate agency fee. You can get a good value for your home and spend that equity how you please, just be sure to account for rent.
For may people this is a great solution to gaining more financial freedom. It’s a great benefit for seniors who don’t have anyone to leave their home to. They can take advantage of their home equity immediately and still remain in their home for the rest of their lives.
This is a sale and leaseback option in the UK and a Sell & Stay option in the US. Its new to the US as an alternative to other types of mortgages, yet it is similar to a mortgage except it’s a landlord tenant arrangement with a home sale.