THE SELL AND RENT BACK SCHEME

Most homeowners are not yet aware of the sell and rent back scheme where the homeowner sells the house and then becomes a tenant of the seller by paying a monthly rental fee. It works much like a pawnshop wherein you sell your property due to an immediate financial need, but you still have a chance to repossess it in the future.
Many homeowners choose to sell and rent back for a number of reasons. First is the convenience of not having to worry about where to stay after selling the home, which is the main problem of most home sellers.
Second, you could sell your home faster the sell and rent back scheme as opposed to selling your home through a real estate agent, which could take months or even a couple of years. And since you sell your home at least 25% lower than the market value, you can expect a quick turnaround time. In this time of recession, it is very difficult to sell a home and the lower value of the home makes it easier and faster to sell.
Third, if you already have a cash buyer interested in your home, then you save on real estate agent fees and legal fees.
Fourth, it is a good way to avoid repossession of your home. If you find yourself short on cash and could not afford the monthly mortgage, then you could sell your home and then rent it back for a lower rental fee than your monthly mortgage. This option is way better than having the home foreclosed and repossessed by the bank
Lastly, the sell and rent back scheme is perfect for the homeowners who are victims of the recession. For those who suddenly lost their jobs and find that they could not afford the monthly mortgage anymore, or those who simply need immediate cash, or for some it may be needed for a child going off to college, or to pay off a huge debt, whatever the reason, the sell and rent back scheme gives them the money they need right away without totally losing their home.
Homeowners could have peace of mind knowing they could still stay in the same place, their children don’t need to move to new schools, and they didn’t entirely lose their home. There is also an assurance that they could repossess the home after a minimum lease period of ten years or even longer if needed.