Thursday, June 11, 2009

One Good Option to Escape a Bad Mortgage

Many people today find themselves in a situation where they can no longer afford their monthly mortgage payments and need to sell their home. But with the downturn in the housing market, the market value of the home is less than the amount remaining on the mortgage. As the home languishes on the market, the homeowner is forced to continue making the mortgage payments, and may fall behind. That introduces the possibility of foreclosure, and the homeowner may be looking desperately for a way out. If no one wants to buy the house, and the mortgage holder won't renegotiate terms, then there is another option that can save the homeowner from this bad situation. That option is to sell to a person or company that is willing to rent back the property to the current homeowner.

The first step in this process is to find a reliable company that deals with buying homes and renting them back. You can first provide them information on your property over the phone, such as the address and assessed value and the square footage. This is enough for them to get a ballpark figure for you to consider before you go any further. If you decide to go ahead, then they will make a personal inspection of the house and provide you with a written quote. At this time they will also tell you how much they would charge to rent it back to you and what it would cost if you wanted to buy it back at some point in the future.

Keep in mind that when you sell your home in this way, you generally get a lower value than you would on the open market if you were selling the home yourself. But in a depressed real estate market, you may never get the offer you are hoping for, and a sell and rent back scheme usually gets quick results. There are other advantages to this method. One is that you don't have to pay a commission to a real estate agent. And if you have children in school, you won't have to move them to a new school district. The neighbors don't even need to know that you have sold the house. There won't be a for sale sign on the lawn, and no moving vans will be parked in the street. Best of all, you will be paying less each month in rent than you were before with a mortgage, so perhaps somewhere down the road, you will be able to afford to buy back the house, and no one will be the wiser.

For all these reasons and more, selling the home and renting it back may be the best option for a distressed homeowner. It can be done quickly and with very little hassle and you can keep your private financial affairs from prying eyes. Considering the other options of foreclosure or selling at a loss, it would appear to be the only option that will let you sleep well at night.

Do you want to sell your home fast? If you do then you are in the right place as Oliver Wingrove at is the place to go. You get a quick house sale which comes with cash in the bank and means that you can payoff your mortgage.

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