Mortgage arrears are two words that are dreaded by every single homeowner. Many enter into mortgages of 20+ years with perhaps slight hesitation but no real worries. For some of these people life becomes a nightmare a few years down the line when they realise they no longer have the funds to maintain their mortgage repayments. This could be for many reasons but the most common is a loss of job.

The lucky homeowners who fall behind on their mortgage repayments are able to talk things over with their mortgage lender and come to an agreement. Those who are not so lucky find themselves with the threat of a court appearance and the loss of their home. If there is no way of making an agreement or catching up with mortgage arrears, you may wish to consider selling the property.

This poses another problem as the housing market is slow and you may not have the luxury of time on your side. You also have to move out of the property if you are lucky enough to sell. On the other hand, you may wish to sell with a company that offers to buy your home and rent it back to you. This way you are able to sell to avoid the lender taking your property and you remain in the property as you pay rent each month. Companies typically work with you to ensure that the rent you pay is more affordable than your mortgage repayments. You also have the option of being able to buy back the property later and for a price that is agreed at the time of selling.

Applying to sell your home and rent it back is very easy, you can usually fill in an online form with a few details such as how much the property is worth and where it is situated. Within as little as 24 hours someone will contact you and give you an idea as to how much you may be able to sell the property for, this is usually slightly less than the full asking price. If you are happy with the quote, your home can be valued and at this time you get to know how much rent you have to pay and how much you may buy the property for in the future, if all goes well you may be able to get a guaranteed sale.

If you are in mortgage arrears then it is safe to say that you will not have money to throw around and when selling with a rent back company you do not have the worry of where to find money for estate agents and solicitors. The fees are typically paid for by the company buying your home. When you take into account that these may add up to quite a sum, the slight reduction in value may not seem too bad. Also, bear in mind that you may not get the full asking price anyway, if you were to put the home on the market. You may have to drop the price to get interest and still not sell.