There are unfortunately times in your life where you may be facing a financial crisis of sorts such as struggling to make your mortgage payments. If maintaining your home has become a financial burden, then you might consider selling it to a buyer that will then rent it back to you. This option has several advantages such as not having to relocate or move your kids to a different school.
As you consider this process, be sure that you understand the full agreement. Since your motivation to sell to a potential buyer is to be able to rent your home back, you need to ensure that the agreement between the two parties has everything spelled out. For example, how long you plan to rent it back and is the buyer okay with that length of time. You don’t want to run into a scenario where a year later, buyer wants to sell the home to someone else and you have to go through the process all over again or much worse vacate the house.
If you are selling for financial reasons, consult with a professional before taking this step. Check the qualification of the company with whom you intend to set up the agreement and arrange for an independent evaluation of your home. Potentially the new buyer will give you a lease of at least five years, and can provide a 14-day cooling off period in case you change your mind or find another solution to your financial problem.
While selling and renting back can be a beneficial option, it is a serious step and should be considered carefully.
Thanks for sharing!
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