The global economy has taken a big knock following the credit crunch in USA. The upshot is the housing market in many western economies has been hit hard with many home owners desperate to stop repossession. One of the options offered by some companies is to allow the home owner to sell and rent back their house or other property. This works by finding a buyer to take on your mortgage and any other debts secured against the property and then renting back from them. At first glance some people may say, but how can then rent in back at a lower rent than the mortgage? The answer is quite simple, these companies have very high credit ratings, so they can borrow money at interest rates well below what the average home owner can achieve. This is the key to their success in helping someone to prevent their home being repossessed and ultimately stop eviction. The sell and rent back option may not be suited to everyone who is in arrears with their mortgage, but it will certainly be of great benefit to some.
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