A sell and rent back company may be the best option left to some home-owners when they face the looming prospect of a repossession. Too many Britain's fall into the repossession trap, losing both their home and credit rating. Millions are at some point in the repossession process, having missed one or more payments on their mortgage. The first mortgages to show signs of trouble, the so called sub prime market, foreshadowed the overall meltdown that plagues the housing market at the moment.
More and more repossessed homes flood the market each day, driving down prices everywhere. This drastic fall in prices has done great damage to the housing market and lenders. The downward spiral of lending companies has had a ripple effect on the rest of the economy, prompting further job losses. This vicious cycle has multiplied tenfold in the past few years, causing what could fairly be called a meltdown. This economic weakness has persisted for several years now, to the point that some neighbourhoods in badly afflicted areas are practically emptying out.
To compound the repossession problem, house prices are lower than they have ever been. Where home-owners have been accustomed to growing values, a sharp decline in value has been experienced in the past few years. This means that even the selling of the home may not be enough to overcome the debt remaining. A home may take months to sell in this market anyway, making this an insufficient measure under most circumstances.
For many home-owners, the only option left may be a sell and rent back company. Many such institutions have appeared on the market as a response to the overwhelming pressure of the repossession tidal wave. This kind of sell and rent solution can sometimes be the only way to stay in the home when financial trouble strikes.
The loss of a job can lead quickly to a repossession situation. If you should lose your job, it is important to act quickly, either to negotiate with the lender, or enter into an agreement with a sell and rent back company. Investigate any sell and rent back offers thoroughly before making an agreement. This should, of course, be seen as a last resort when no other avenues are available. This is preferable to going down the repossession route, but it is nonetheless a significant sacrifice.