So you have found yourself in arrears with your mortgage and you cannot afford to continue repaying or catch up on the missed repayments. This unfortunately is something that hundreds of homeowners are faced with each year. While you may think that all is lost, there are options you may wish to consider.

You may wish to look into a sale and rent back agreement to sell rent back your property, you may be able to get the money to pay off your lender and you do not have to move out of the property as you can choose to rent it back. There is however no guarantee that you are able to remain in the property for ever.

Of course this is just one of the options open to you and it may not be the most suitable. Check out all other options before selling.

When looking into a sale and rent back agreement it is essential that the company you choose is regulated by the Financial Services Authority. There are numerous regulations that have to met by companies when offering a sale and rent back agreement.

Repossession is one of the most frightening aspects of buying a home. Having to keep up with the mortgage repayments for what can often be fifteen or more years is a terrifying thought. Miss a couple of repayments and the lender will want to know why and of course you have to catch up on the missed repayments.

If you have found yourself in this situation and you cannot afford to repay what you owe you may be looking at losing your home to repossession. One option to avoid the stress and worry, not to mention the shame of being evicted is to sell and rent back your property and live in it as a tenant through a sale and rent back agreement.

If you choose a sale and rent back agreement you may be able to pay off the mortgage and any arrears and pay rent for a fixed period of time.

There are numerous companies out there who offer a sale and rent back agreement but ensure that you choose one that is backed by the Financial Services Authority.

As promised, here is the third tip for avoiding the pitfalls of selling and renting back.

“Make sure you know what is what!”

When selling your home to rent back it is essential that you know “what is what”, for instance what agreement do you have with the landlord or company when it comes to different aspects of the tenancy?

One of the things you may wish to consider is the agreement when it comes to repairs in the property. Is there a certain amount of time when repairs have to be completed for instance? Does the landlord have to give you notice to come into the property to maintain it, if so how long? Another factor to consider is who is managing the property? You need to know this, and how to get in touch with them if you need them.

Another factor to consider is how lenient the landlord is when it comes to redecorating the property. Are you allowed to decorate the property as you wish, do you have to have the landlords approval? All of these things need to be considered before you sign over the property and rent it back.

Selling your home and renting back is a huge step, so always ensure you have given the process a great deal of thought before going ahead and signing.

This is the second tip on avoiding the pitfalls of selling and renting back, as promised.

“Ensuring that you get the best deal”

When choosing a sale and rent back agreement of course you want to get the best deal possible. While a company regulated by the FSA are under an obligation to treat their customers fairly and give you the best deal possible, you may wish to consider other options as well.

For instance, you may want to get more than one quote from other regulated companies. Check out several companies online, and see what they offer with a sale and rent back agreement.

Ensure the property valuation is fair and is done by a competent surveyor who inspects the property fully.

Always make sure you know how long the tenancy agreement is for, typically the rental agreement is around 5 years.

Finally, our last bit of advice is to go over the terms and conditions of any agreement you are given very carefully to ensure that you understand it completely.

Look out for our third tip to avoid the pitfalls of selling and renting back tomorrow.

We will be giving you 3 tips on how to sell and rent back your house safely.

“Avoiding companies which are not regulated”

One of the first things you need to give thought to when you are considering selling your home to rent back is that the market was regulated on 1st July 2009. Therefore, companies offering any sale-and-rent-back have to be authorised by the UK’s Financial Services Authority (FSA).

While the market is regulated, unfortunately there are still some unscrupulous individuals out there who try to work without the regulation in place. Therefore, be very careful of who you are dealing with when choosing a sell and rent back company.

All our associates that handle customer enquiries and provide this product are regulated by the FSA.

Keep your eyes open for more advice on how to avoid the pitfalls of selling and renting back, tomorrow.

With the recession only just being over, it will probably not be long before the interest rates will rise, which will see more homeowners falling into debt with their mortgage arrears and be faced with repossession. Many are already struggling to keep up with their mortgage repayments even though interest rates are at the moment extremely low and even a slight rise may be the last straw for the many who are struggling to keep their heads above the water.

If I were one of the many who are struggling to repay my mortgage repayments and knew that repossession was imminent, I might look into being able to sell my house and rent it back. I might be able to work out a deal to sell my property and remain in it by paying rent that was more affordable than the mortgage I had struggled to pay.

If I were to choose to sell property rent back, I would also have the option of being able to buy back the property in the future if my financial status recovered.

When you choose to sell to rent back you are typically given a rough idea of how much a company might pay for your home and you may be able to sell in just a matter of a few weeks from applying.

The Citizens Advice is offering free mortgage help and advice to those who are in arrears with their mortgage repayments or who are struggling to keep up with repayments. The CAB saw an increase of over 42% for those coming to them for mortgage advice last year and it is hoped that some homeowners may have been able to avoid losing their homes due to this help.

While advice and help may lead to some homeowners being able to catch up with their repayments sadly for others, this help comes too late and repossession is only a matter of time. If you cannot repay your mortgage arrears, you may wish to look into another option, being able to sell property and rent back.

When you take a buy rent back solution, you are allowed to buy back the property at the price agreed at the time of selling. Paying affordable monthly rent may be a suitable option if you cannot bear leaving your home and it could provide you with the time needed for you to be able to get back on your feet again. However always ensure that you check out the company you are considering selling with to ensure that they are backed by the FSA.

A leading expert in repossession has stated that repossessions will only take place as the very last resort. When repossessions occur, it is not just the homeowner who suffers but also the lender it has been suggested, due to this, the lender will consider all other possibilities before taking homeowners to court to repossess their home. The FSA has announced that they intend to set out new measures to help homeowners faced with arrears or problems repaying their mortgage to ensure that they are treated fairly. It is thought that one of these measures will be to ensure lenders do not charge monthly fees for those who have entered into an agreement to repay their mortgage arrears and who have not faulted on their agreement.

Numerous homeowners are struggling to maintain their mortgage repayments and many cannot reach an agreement to repay the arrears owed. If you are in this situation then you may wish to consider looking into being able to sell house to rent back to avoid losing your home.

Companies typically offer a buy house rent back solution that comes with affordable monthly payments and the price at which you buy back is set at the time of selling. If you are considering a sell and rent back solution then you need to ensure that you understand the whole process of the agreement.

Government funding will help homeowners who have fallen into mortgage arrears are who are struggling to maintain their mortgages, avoid repossession. The funding has helped to provide help and advice for homeowners in the past and it has been revealed that it will continue to do so despite the recession being officially over.

The campaign has been extended after it was revealed that lenders expect the number of repossessions to increase this year. Councils believe that free and impartial advice and help may help many to avoid losing their homes. Last year around 330,000 homeowners took help and advice offered by the Government due to the funding.

If you are in mortgage arrears and you cannot repay them you might want to consider the option of being able to sell house and rent back with a sale to rent back agreement. There are companies who offer to buy and rent back the property to you and this may be one way of you being able to remain in your home and avoid losing it. However do not think that you will be able to stay in the house forever, as typically there is a rental period of 5 years.

If considering this option you may wish to ensure that you choose a company regulated by the Financial Services Authority.

Around 67% of lenders believe that the number of repossession in 2010 will rise. 50% of them think that repossessions will increase by 5% while 6% of lenders believe that the rise will be over 15% this year. The reason behind the results is excessive overspending on credit cards and other forms of unsecured borrowing. Those in debt are struggling to keep up with their unsecured debts, which sadly also affects the ability to repay their mortgage repayments and so sees many fall into mortgage arrears.

If you are one of the many who is struggling to meet their mortgage repayments or who have fallen behind on their repayments then you may wish to look into ways of avoiding home repossession.

One way you might be able to avoid losing your home is if you choose to sell your house and rent it back with a company offering a sale and rent back agreement. When you sell home and rent back you remain in the property, for a fixed amount of time, by paying rent that is usually affordable.

You might apply for a sell and rent back option online with a company that complies with the FSA and weigh up the bad points along with the good before reaching a decision.