John Boyle Woodley, a 54-year-old factory worker took a mortgage over 30 years a go when he first begun working. Over the years, he paid for the house and re mortgaged it to increase expand the space after a couple of years. But soon things started going wrong. He became redundant in the great job loss era, lost his livelihood and fell behind his payment, let alone regular bills as water and power. To avoid repossession, Mr. Boyle decided to sell his house, and buy a new home, selling the mortgage as well. But although he made the sale and got out of the mortgage, he is homeless to day. Why? This is a question I posed. And after some research, I found out what went wrong.
One, Mr. Boyle did not take his time to think between sell and rent back option, sell and buy back, and the popular step he took was to sell and buy new. If he had taken this position, he would have been able to find out the best way to go about his problem. If you sell and rent back your property, you have the ability of getting part of the proceeds, being able to avail equity release that could help you invest and be more liquid, pay your bills, and be able to apply for a buy back option from the reseller. Mostly when you rent back your home, you get protected by the assured short hold tenancy agreement. Furthermore, you will get the rental at market prices.
Quick property sale at this point would be avoided as you will have all the time to make up to your payment lapse and even be able to find a balance, invest and get an assured monthly income that would not only help you buy back your house; but also help you be credit worthy again! In any case, you must consult widely in order that you make the best decision, as this will give you an edge. I know everyone wants to get the best deal. It is your turn too!
Jan 03