Stop Reposessions > Sell & Rent Back > What is it?

What is sales and rent back?

Sale and rent back companies operate by offering to purchase a person’s home, paying all fees and costs, and then renting the property back to the original owner(s), providing them with the security of being able to remain in their own home.

These companies typically only pay 70% to 80% of the property’s market value and then rent the property back at market rent, or sometimes less than the borrower’s monthly mortgage payments if these were lower than the rental value.

Homeowners can use the cash sum generated from the sale to settle their existing mortgage and any outstanding debts. They may also be offered the opportunity to buy the house back from the company at market value at a later date.