If you are having severe problems with finances and are unable to continue meeting the requirements of your monthly mortgage repayments, then you may wish to consider a sale and rent back agreement.

When selling your house and renting it back, you can continue to live in the property for the agreed rental period. While suffering mortgage difficulties is one way in which a sale and rent back agreement may work, it can work in other situations too.

Those who are emigrating may be able to benefit, as might individuals who are going through a divorce. If you need money of a substantial amount, you may also benefit from a sale and rent back agreement. However, in order to be able to benefit this way you must have substantial equity in your home. Also consider the fact that typically home owners are offered a fixed rental period when selling this way.

While a sale and rent back agreement may be a good choice, there are both good and bad sides. One of the down sides is that the amount you get for your home is typically less than the market value. This is decided by such things as the area in which you live and the type of home you have for sale.