How Do Quick Sale and Rent Back Companies Work?

by: admin - September 24th, 2010   Filed under: Articles Add Comment

How Do Quick Sale and Rent Back Companies Work?

For those people requiring a quick sale or wanting to sell and rent back their properties there is now a whole plethora of specialist homebuying and rent back companies to chose from. The problem is that until regulation comes in (which will hopefully be shortly after the FSA have finished their investigation in the practices and best way to regulate the sector) then many unscrupulous companies will be allowed to exist.


How does the quick sale process work

The home buying company will buy your property directly from you. They are not an estate agency of middleman and they take full ownership of the property. They will typically offer you between 75-85% of the market value of the property in exchange for a quick (4 weeks or less) guaranteed sale. They will then rent out the property or sell it on.


Given the buying and selling costs are about 5% each then these companies may only make 5% profit on each property if bought at 85% and less if they can not sell it for months. This is why they need to buy at a discount.


How does rent back work

If you need to sell but want to stay in your property (i.e. because you need to pay off arrears or avoid repossession for example) then renting back your property could be the ideal solution.


This involves you selling the property to a specialist company and then them renting it back to you (most home buying specialists offer this service). The sale price will normally be between 75-85% of its market value just like in a quick sale situation.


The rent you would be charged would be similar to the market rent of that property. This rent normally works out less than previous mortgage payments and loan outgoings so that the person stays in the their property and reduces their outgoings.


When you rent back your property will most normally be on an assured shorthold tenancy agreement (AST). This is the standard contract between tenants and landlords. The maximum term of this contract can only be 12 months so it is imperative this has a clause added to this agreement giving you the right to renew this contract on it expiry. They should also specify how much the rent will increase each year (normally with inflation or set % amount).


A good company will insert a right to renew clause in the tenancy agreement. This gives the tenancy the right to renew their tenancy each year as long as conditions are met (i.e. the rent is paid, the property is kept in satisfactory condition).


Be careful which company you deal with

Anyone who says they can show you how to “Sell your property in 7

days or less for full market value” is LYING!! They just want to get into your front door and soon the offer of buying at full market value disappears. If you think about it, how could they make such an offer and make money as a business and why would they not just go to estate agents and buy up all the properties in the

windows? If it sounds to be good to be true it normally is!


Some unscrupulous companies have tarnished the image of sale and

rent back by evicting tenants when they did not want to leave. Please contact previous customers of the company and check online for reviews of them to make sure you are not dealing with such a company. Also check to see if they are a member of a recognised association which has a strict code of conduct such as the National Association of Sale and Rent Back (NASRB).


Why would a rent back company throw me out?

The vast majority of rent back companies love having previous owners stay in the properties for the long term as they do not have to advertise for new tenants each year and have periods when their property is empty.


In addition, sale and rent back tenants treat the property with great care as it still s feels like their house and not rented accomodation. They tend to respect properties better than normal tenants and most companies do not want to lose them.


Also, a good sale and rent back company will give some assurances about future increases in rent. For example, they may stipulate that rents will only increase with inflation each year or at the same rate as market rents. This should be in the contract. If not, there is a danger they could increase the rents massively each year to the point where it is effectively forcing their tenants out.


Option to Buy Back

Some companies will also give you the option to buy back your property at a fixed price in the future. This is agreed before you sell and this contract is registered at the land registry. This gives you a legal right, but not obligation, to buy your property at a preagreed price over a set timeframe.


Regulation of sale and rent back

The Office of Fair Trading are conducting a study that will determine whether existing consumer laws can keep homeowners adequately informed and protected, and could recommend that sale and rent back is fully regulated. Any further protection will be great for reputable companies and rent back customers.

Carl Robinson is an experienced property consultant and investor from the UK. If you want a quick home sale visit Quick Home Buyers for a free report on how to sell your property quickly.

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How To Find The Best Repossession Companies For The Best Eviction Advice.

by: admin - June 24th, 2010   Filed under: Articles Add Comment

How To Find The Best Repossession Companies For The Best Eviction Advice.

There are around 100,000 mortgage possession actions instigated by banks and other lenders every year, many of which could have been stopped by prompt action, such as arranging a new mortgage with a repossession company.

If you are facing imminent repossession – or even if you are in mortgage arrears then it’s important to take action quickly. The problem is what action should you take and where should you look for repossession advice?

Overwhelmingly these days people looking for repossession help or repossession companies turn to the Internet. There is a massive amount of information on debt, debt relief, how to get out of debt and in particular articles and websites offering repossession advice (like this one!)

Perhaps the most important repossession advice available is to act quickly. Even one missed payment on your mortgage can be enough to start a downward spiral that quickly leads to a mortgage possession order.

If you’re only facing mortgage arrears, you may wish to turn to a remortgage company. By remortgaging your home you can free up equity from your property that can be used to relieve your debt problems; unfortunately most High St lenders will not lend to you if you face mortgage arrears – that’s why it’s worth scouring the Internet for a remortgage company who specialises in lending to people with credit problems. Try using search phrases like “remortgage help” or “remortgage advice.”

If you have missed several payments then your mortgage lender may instigate repossession proceedings. They will issue a claim form with a N11M, a further form that allows you to explain your position and what you intend to do about your debt. This is the time to act quickly – again, a remortgage company may be able to help you by finding a new mortgage that satisfies the courts that you are doing something about your debt AND gives you the cash to alleviate your debt.

Believe it or not, even if proceedings have gone further than that, there is still something you can do about it – searching for “repossession company” or “repossession help” can furnish you with a great deal of information about what to do in your situation, but essentially, even though it may seem like the last minute to you, a remortgage company can often stop repossession in its tracks – even if an eviction order has been issued.

The bottom line is that courts and mortgage lenders don’t want to take your home away from you – they would far rather the debt is paid off and you are able to continue living in your home. If you can demonstrate that you have the ability to pay off your mortgage arrears then the repossession proceedings will be stopped.

Once things get to the stage of a possession order or even an eviction warrant, you may be left with very little choice in terms of what you can do about it. Unless you can demonstrate a large source of income very quickly your only other recourse would be to a remortgage company who can contact the courts and show them that you have a new payment vehicle in place.

Whatever you choose, it’s important to get the most accurate and appropriate repossession advice available – find a repossession company with trained advisors who can give you professional help for your situation.

Tom Mead is a qualified mortgage advisor writing repossession advice editorial on how best to stop repossession and save your home.

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Quick House Sale Through Mortgage Rescue Companies

by: admin - June 20th, 2010   Filed under: Articles Add Comment

Quick House Sale Through Mortgage Rescue Companies

House sale can be a very time-consuming and demanding process. As opposed to selling other goods, selling a home is something that cannot be done overnight, regardless of all the compromises that a homeowner might be willing to make. Under normal circumstances, when time is not a decisive factor, the length of the sale process should not be a problem. In fact, it is advisable that you wait and analyze the market carefully. But what happens when you want or need a quick house sale?

Everyone knows that selling a house in the traditional way can be lengthy and quite expensive on the seller’s part. Moreover, there is a chain of individuals involved in each house sale and this chain can collapse at any time. You can wait for several months before you find the best buyer for your house and then several weeks before the sale process is completed, not to mention the fact that your buyer may change his or her mind at the last minute, leaving you with nothing. This situation is totally unacceptable when circumstances that you cannot control force you into a quick house sale. The need for a quick house sale may be brought about by a series of factors. However, the cause is less important. What is important is that you be able to sell your house quickly and without any losses when the circumstances ask for such a resolution. If you are in a serious financial crunch, a quick house sale may be your only option. How can you achieve this? How can you get the large amount of cash that is tied up in your property in a fairly short time? The answer is simple. Finding a local company that specializes in investments in real estate properties is the best solution. This is the only way in which you will be able to make a quick house sale, get cash for your property and be able to solve your financial problems.

If you are behind on mortgage payments, you probably already know that there may be serious consequences to your inability to make payments on time. The most serious of all possible consequences is that of losing your home. If this prospect is becoming more and more imminent, you should definitely consider the option of selling your home and renting it back until the time you are financially able to buy it back from your investor. A normal buyer would probably not agree to buying your house, renting it to you and selling it back to you after a number of years. But we are not talking about normal buyers. We are talking about investors that specialize in the sell and rent back scheme. You can refer to these organizations as mortgage rescue companies.

Mortgage rescue companies will help you overcome your financial difficulties by making you an offer for your house and paying cash for it. Moreover, the sale process will be accelerated, enabling you to get the money you need in a very short time. Most sale taxes and fees will be paid for by these mortgage rescue companies. In most cases, you are also presented with the option of renting your house and buying it back at a certain time in the future.

For more resources about Quick house sale or even about mortgage rescue companies please review this website http://www.propertysituation.com/

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