Homes For Sale: Clare Wilson's Story
If you've spiralled into a terrifying financial situation, take heart, because you're not alone. In today's volatile housing and job market, many people across the nation are facing repossession and bankruptcy due to no fault of their own. You may feel as though there is no way out of your situation, but there is an option you probably haven't thought of - selling your house and renting it back.
When a person becomes disabled due to some illness or injury, finances may become incredibly strained. Disability payments are much smaller than a normal paycheck, sometimes making it impossible to make ends meet. Taking care of normal, everyday expenses like food can be threatened by the need to make a large mortgage payment each month.
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.
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. This news excited Clare and after she did some inquiring she realized that this was something that she could do, and she wouldn't have to end up losing her home in the process. The fear of having the for sale sign up in front of her house was alleviated.
Here is how to follow the process of sell and rent back. Clare sold her home to a firm that works in the repossession and foreclosure market, then she sat down with one of their representatives to determine the likelihood of renting back at an affordable rate for her. She worked with them to find a payment she could afford while still being able to provide for the needs of her home, but not too low so that she would have a long time before she got her house back. The properties to rent back, just like Clare's, will usually not ever go through a change of hands.
She was building up her equity in the house with a payment each and every month. The choice belonged to her, to just pay rent every month until the home was eventually purchased or until she could save up enough or improve her situation to the point where she was able to buy the house outright. The rent might even be lower than the average amount in the neighborhood. The house was hers to rent or buy, whichever she chose. Without even having to move out of the house, she could sell it and then rent it back. Her neighbors did not have to know about it, and it was no one's business but her own.
After three years of massive bills and a mounting debt, she feared that the only way out was to sell the home she had lived in for thirty years. There were no other nearby homes for sale in her price range. Here is how to follow the process of sell and rent back. Clare sold her home to a firm that works in the repossession and foreclosure market, then she sat down with one of their representatives to determine renting back at an affordable rate for her. The properties to rent back will usually not ever go through a change of hands.
Published October 11th, 2007
Filed in Real Estate