Homes For Sale: A Payment You Can Afford

If your finances have gotten out of control and you find yourself unable to get out of the hole you are in, don't lose hope. You are not alone. Many people are in the same boat, having experienced an unexpected layoff or housing situation, facing bankruptcy just because of a turn of fate. You probably think that there isn't a way out of the fix you're in, but you need to consider an underused option: selling your house and renting it back.

Just 2 years ago, single mother Clare Wilson was in the same situation. When she became disabled due to very severe arthritis, she was not able to hold a job. Each month she would get just a small amount of income from her disability benefits. This was not enough to pay her mortgage, or properly care for herself and her 2 teenage sons.

Clare felt trapped and hopeless after wrestling with huge bills and debts for three years. She was to the point where she thought she would have to sell the home she had called hers for thirty years. She'd researched rental prices in the area and found that she couldn't afford them, so she resigned herself to moving with her two sons into a relative's home. She could find no homes for sale that she could conceivably purchase, and she was almost out of hope.

Fortunately at the time that her home was coming under the foreclosure process a friend of Clare gave her a call to tell her that she had figured out how to sell and rent back her home. This news excited Clare and after she did some inquiring she realized that this was something that she could do, and she wouldn't have to end up losing her home in the process. The fear of having the for sale sign up in front of her house was alleviated.

Here is how to follow the process of sell and rent back. Clare sold her home to a firm that works in the repossession and foreclosure market, then she sat down with one of their representatives to determine the likelihood of renting back at an affordable rate for her. She worked with them to find a payment she could afford while still being able to provide for the needs of her home, but not too low so that she would have a long time before she got her house back. The properties to rent back, just like Clare's, will usually not ever go through a change of hands.

Each monthly payment was used to build up equity in the house. She would have her choice of either paying the monthly rent for a long period of time, until the home was completely paid for, or paying just until her financial situation was improved enough to buy back the house. She will have to pay the rent to live there during that time which could well be lower than the going rate in her neighborhood. Either way, the house was hers to live in for as long as she wanted, and would soon become hers on paper, if she wanted to. That way the she managed to sell the property to rent back without ever having to move out of the house. And her neighbours were none the wiser, let alone any one else.There were no other nearby homes for sale in her price range. Fortunately at the time that her home was coming under the foreclosure process a friend of Clare gave her a call to tell her that she had figured out how to sell and rent back her home. The properties to rent back will usually not go through a change of hands. That way the she managed to sell the property to rent back without ever having to move out of the house. And her neighbors were none the wiser, let alone any one else.