Tread Softly As You Look For a Reputable Sell and Rent Back Company

Tread Softly As You Look For a Reputable Sell and Rent Back CompanyIt is in order to sound a word of caution to all home owners who find themselves being unable to repay their mortgage on time and are considering a quick solution to the problem. The quickest way out of it so far has been sell and rent back. As much as there are many success stories you could write home about, there are also a considerable number of happenings within the industry that makes us raise the red flag. There are still a number of people who are finding themselves at the mercy of unscrupulous operators who are yet to comply with the regulations that are being set up by the Financial Services Authority. The guideline has been simply that you need to make sure that the company you are selling your house to has the FSA Interim Authority because if the failed you it becomes possible for you to have an avenue for redress.

The rules and regulation for the trade came into effect from July 2009, when all companies dealing in the sell and rent back scheme ought to have registered with the FSA and agree to abide by a set of regulations that seek to protect the customer. It appears that apparently there are many firms that are yet to abide by that simple rule. Those companies that are operating across the fence that has been developed by the government therefore need to be treated with a good amount of suspicion from potential home sellers. It may be possible that they are simply out to flout any existing regulations and you and I can tell that it then becomes extremely easy to take advantage especially of those who may not have complete information. You are selling the house because you want to come out of a financial pit and you therefore should not take simple things like these for granted.

With reports that indicate that the property market continues to shrink with each and every passing day, it is possible that some business owners may want to set the general public in a panic mood so as to rush and grab any deal that is presented before them. With more and more home owners defaulting and mortgage companies ringing the repossession bell over their heads, the number of people seeking to sell their homes quickly is getting to an all time high. Demand then seems to be outstripping supply and this is the situation where dealers who are not too straight will want to cash in because everyone wants a deal. It has caused a situation where some dealers are even paying up to 40-50% of the market value of the home and the owner ends up with very little or no equity at the end of the day.

The sell and rent back scheme should ideally allow the home owner to remain back in the house or as long as they can continue to pay rent for the same. However, it is getting to a point where many home owners sell their houses and do not remain with any equity to push them a little further before they get back to their feet financially. Without any guarantee that the company you are dealing with can be trusted to trade within the rules of fair trading as required by the FSA, you will have yourself to blame if you get short changed in the middle of the contract you will have signed. You do not want a situation where you will find yourself kicked out of the house and become homeless in the real sense of the word. It does not cost you anything to shop for the right sell and rent back company with a little more caution.