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| More Rulings Will Be Enforced Over Those Offering Sell to Rent Back Deals | November 3, 2009, 8:43 pm | visits: 0 | wordcount: 536
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By Frank Hendrickson
The latest news to come out of the sell to rent market is that new FSA rulings will come into force at the end of June 2010. These rules will be imposed by the Financial Services Authority following an investigation by the Office of Fair Trading. While there are many decent and honest companies out there who offer homeowners the chance to sell their homes to avoid repossession, others have been found to use exploitive measures and high-pressured sales techniques. In short, some have been preying on homeowners who have few options left to them if they wish to remain in their homes.
The new rulings will be aimed at companies such as these as the FSA protect those who are faced with the dire situation of losing their homes. It can be all too easy to forget about the small print and believe in such a company offering you the chance to stay on in the property for life by paying affordable monthly rent. The company is throwing you what they often call a lifeline and a win-win situation and many desperate homeowners of course jump at the chance. Those who sell to ethical and well-established companies may get the deal they thought they were getting, but others have fallen into a devious trap, which has seen them faced with large rent increases which they eventually struggle to meet. Some also believe they can stay in the home for as long as they want only to find they have a short term rental agreement which in some cases has seen individuals evicted after as little as six months.
Now firms offering sell and rent solutions have to apply for authorisation, need to be approved, and will then be regulated under the watchful eye of the FSA. So how might those considering selling and renting back their homes benefit?
One of the problems with sell and rent back schemes is that some companies offering them put emphasis on the fact that individuals can sell their homes fast to avoid repossession. Homeowners that have exhausted all other options may be tempted to sign papers without reading them thoroughly and rush into the agreement only to regret it when things do not go as they were led to believe. One of the new rules will be the introduction of a "cooling off" period. This will allow homeowners the chance to think things through and provides them with time to read agreements and legal documentation before signing.
Companies offering homeowners the chance to sell their home must act in the best interests of the homeowner, check, to ensure that they are offering a deal that is right for the consumer, and make sure that the consumer can afford to enter into the agreement proposed.
Last year there were over 1,000 companies offering sell to rent back deals and so far only 80 companies have applied to the FSA for authorisation. If you are considering selling your home to avoid losing it to repossession then ensure you choose one of the 80 that are regulated by the FSA. Be very wary of any companies that cold call, or who provide what may be false hope with quotes such as "rent your property back for life"
Frank Hendrickson, Freelance Writer. We are committed to providing free helpful information about the real estate market. For more information about the sell to rent back deals visit http://www.etutoringspace.com/blog/more-rulings-will-be-enforced-over-those-offering-sell-to-rent-back-deals/
Source:www.isnare.com | |
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