Property Rescue Blog

The much publicised property slowdown and credit crunch has forced many homeowners into difficult situations. The cost of living has risen dramatically in the last couple of years and the credit crisis across the pond has only added to the mortgage problems that many people are facing.

As a result many homeowners are finding that their income is no longer significant enough to deal with the mounting debts that accompany their mortgage repayments. Unfortunately this often leads to the homeowner needing a quick sale in order to raise the necessary cash to cover their debt. In the present climate, a quick property sale has become more and more unlikely.

The market situation and new financial difficulties faced by the public due to the American credit crisis has resulted in a growth spurt of sell and rent back companies.  Their encroachment into the property market has not been welcomed by all, especially estate agents and debt consolidation companies. Homes sold under a rent back scheme do not involve estate agents, as the property is sold directly to the company specialising in cash purchases, which obviously bypasses an estate agent fee.

The cash purchase element of sell and rent back also infringes upon the territory of debt consolidation companies, as it would negate the need for a homeowner to take out a loan that is secured against their house.

There has been a lot of conjecture surrounding sell and rent back companies, especially in the press. As a new element of the market, there is still some doubt and suspicion regarding the motives of these companies.

The industry is not currently regulated. As a result, a small number of business are setting up with the intention of capitalising upon the difficulties of others by leading them to believe they have the rights of a tenant and then selling their homes from under them when a better offer comes along… (cont)