Rent to Own – A New Approach to Get on Housing Ladder

Rent to Buy is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home.

This is a wonderful option for those people who want to purchase a home right now but may need a little time to build the credit score or who may need time to acquire enough down payments.

So, what exactly is entailed by a lease purchase or rent to own? A good standard rental lease enables you to only live in a house but it gives you no right to own or purchase a property. It is usually associated with move in expenses such as deposit or security deposit. But if you are into a lease option home or lease purchase home there is an option in the agreement that gives you the right to purchase your rental home within a certain period of time which both the landlord and the tenant agree upon a price. There is usually an initial option amount due which is similar to your rental deposit upon signing and after that there is monthly additional payment which applies to the purchase price of the home which is into lease option.

There are certain benefits of rent to own homes. There idea of rent to own properties is on the rise in the real estate market. There is no need to make an on spot deal for paying and owning a house. Some people take this opportunity just as sake to check out neighbourhood prior to giving a full commitment of purchasing the property. Thus it makes a perfect solution to the investors who won’t risk their money on wrong properties.

If you are finding it difficult to meet your mortgage payments, or looking for ways for a quick house sale then you may consider our service. You may even be considering rentback or sell and rent back solutions. Contact us and we will advice how best we can help you. (our sponsors)

This rent to own homes enable people to buy ideal homes without much hassle and pressure of bank loans or mortgage tensions. This is in fact becoming a serious choice of people who are first time investors into the real estate market. Slowly the option is also being applied to vehicles.

The down payments are negotiable and people who cannot afford to make huge down payments to real estate market can go for the option of rent to own homes. This is a good choice as down payments in such methods of purchasing are quite low.

Another important benefit of such method to own property is that investors don’t have to worry about the closing costs of properties. The agreement regarding the appropriate price of the house is done between the buyer and landlord. So there is no chance of loss in the closing cost of the property.

In some cases many landlords accumulated the rent forwarded as payments towards the price of purchasing property. In such a case the landlord asks for a payment which is slightly higher than monthly rent. You can opt for this rent to own home as a substitution for a large down payment you need to make if you take a loan. And the best option is that the rates are negotiable.

About the Author: Rent to Buy is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home.

Rent to Own – A New Approach to Get in Housing Ladder

Rent to Buy is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home.

This is a wonderful option for those people who want to purchase a home right now but may need a little time to build the credit score or who may need time to acquire enough down payments.

So, what exactly is entailed by a lease purchase or rent to own? A good standard rental lease enables you to only live in a house but it gives you no right to own or purchase a property. It is usually associated with move in expenses such as deposit or security deposit. But if you are into a lease option home or lease purchase home there is an option in the agreement that gives you the right to purchase your rental home within a certain period of time which both the landlord and the tenant agree upon a price. There is usually an initial option amount due which is similar to your rental deposit upon signing and after that there is monthly additional payment which applies to the purchase price of the home which is into lease option.

There are certain benefits of rent to own homes. There idea of rent to own properties is on the rise in the real estate market. There is no need to make an on spot deal for paying and owning a house. Some people take this opportunity just as sake to check out neighbourhood prior to giving a full commitment of purchasing the property. Thus it makes a perfect solution to the investors who won’t risk their money on wrong properties.

If you are finding it difficult to meet your mortgage payments, or looking for ways for a quick house sale then you may consider our service. You may even be considering rentback or sell and rent back solutions. Contact us and we will advice how best we can help you. (our sponsors)

This rent to own homes enable people to buy ideal homes without much hassle and pressure of bank loans or mortgage tensions. This is in fact becoming a serious choice of people who are first time investors into the real estate market. Slowly the option is also being applied to vehicles.

The down payments are negotiable and people who cannot afford to make huge down payments to real estate market can go for the option of rent to own homes. This is a good choice as down payments in such methods of purchasing are quite low.

Another important benefit of such method to own property is that investors don’t have to worry about the closing costs of properties. The agreement regarding the appropriate price of the house is done between the buyer and landlord. So there is no chance of loss in the closing cost of the property.

In some cases many landlords accumulated the rent forwarded as payments towards the price of purchasing property. In such a case the landlord asks for a payment which is slightly higher than monthly rent. You can opt for this rent to own home as a substitution for a large down payment you need to make if you take a loan. And the best option is that the rates are negotiable.

About the Author: Rent to Buy is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home.

Sell and Rent Back

Sell and Rent Back as a new theme that becomes more popular. This article will explain sell and rent back and gives an analysis view about the advantages and disadvantages it.

Sell and rent back is a very interesting theme which various companies are trying nowadays. In this type of work a company takes a home on discounted price from the borrower which will rent back to them at the market price. The advantage of sell and rent back is in the term of arrears. The deal can be done quietly without any interference of the neighbours and the surrounding houses. The only major drawback comes in the form of unregulated firms. The house is taken on less than the market value which means at the discounted price.

The cash can be used by the homeowners to settle the mortgages if there are any. Outstanding debts can also be clarified and they can be paid too. Many companies also offer the scheme to buy back the house at a later time in future at the market value of that day. The legal matters are set within very few days because of the earnestness of the company. Most of the sell and rent back vendors claim that the borrowers get 70-85 % of the money which means a little loss, whatsoever. But there are also some incentives behind these schemes too.

If you are finding it difficult to meet your mortgage payments, or looking for ways for a quick house sale then you may consider our service. You may even be considering rentback or sell and rent back solutions. Contact us and we will advice how best we can help you. (from our sponsors)

Discretion is also offered by the firms offering sell and rent back schemes. There neighbours need to tell the neighbours and the discretion is fully used at the general basis. But there are also some major drawbacks of sell and rent back schemes. Homeowners have to sell their home at a discounted price which means a certain bit of loss instantly. The quick sales company deals only with the people who need to pay their debts immediately without any hassle. These companies are always there to look out for people who want to sell their house in a hurry which means an instant profit for these companies.

The only possible solution is not to fall into the snares of these companies but if a person needs money immediately then there is no choice. The internet has allowed these sell and rent back companies to grow very easily. These companies try to find the people who are in need of money and at the end they carry out the whole deal at their cost. But the person who wants to go for the sell and rent back schemes should always go for some other easily available options.

Most of the companies are part of wider groups and they are the big firms who carry out big businesses. These business minded people tries to get hold of the lower middle class and they shows the money power to lure them instantly. The vendors are always there to help these companies because they get their own commission by bringing the clients. At the end it does not seem feasible that an individual should go for sell and rent back schemes because of the loss incurred in it. The loss incurred is much greater in the sell and rent back schemes than any other scheme.

About our guest author: Rent to Buy is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home.

Will Credit Card Rates Come Down Too?

There are 31 million credit cardholders in the UK. And they rely heavily on spending using their plastic. In the third quarter of this year, £33.2bn was spent on credit cards, while £31bn of repayments were made.

But those who are paying delayed credit card payments are probably thinking that their payments will reduce after last month’s Bank of England’s rate cuts.

Nope! No really…

Rather than passing on the sharp cut in rates, many credit card companies have decided to keep that cut to themselves.

There is a concern in some govt quarters over the irresponsible behaviour by this industry, and one or two credit card companies in particular. E.g. one company has doubled the APR on one customers’ borrowing while they were in debt.

People are concerned about their financial future and trying their level best to stop repossession of their homes, or trying to keep their jobs.  An additional worry of having to pay the same old extortionate rates on their credit cards is some thing they can do without.

Obviously, this has not gone unnoticed at the top governmental levels. Lord Mandelson, the Business Secretary and Gareth Thomas, the Consumer Affairs Minister are on the case. They will be meeting the credit card firms to tell them off.. or else!

In the exceptional times of credit crunch, it is a shame that some institutions are making money at the back of misery of so many consumers.

 

More here

Interest Rates – Any Chance of Further Cuts?

Oh Yes, most certainly… at least that is the verdict of Bank of England’s governor, Mervyn King.

And who knows better than, well the man who is going to have a major say in all this after all?

Speaking to Commons Treasury select committee yesterday, he said that he wants banks to start lending normally rather than sitting on – what is essentially tax payers’ money (as this money was used to bail out the banks).

Governor was aware that although the  Bank of England had cut its base rate from 4.5% to 3% in November, most banks had refused to pass on this cut fully to their customers. Many even withdrew their tracker mortgages – and they are now reintroducing them, but with a higher spread from the base rate than before.

"This means that we must cut bank rates by more than we would otherwise have done, and we will take this into account when we calibrate the correct cut in bank rate."

There you have it – crystal clear, straight form Mr King. Governor is not hoping, but telling us that the rates are on their way down. Expect some news… even as early as December.

Will this stop repossession incidents in this country? I certainly think this will help.  Those who were fearing coming off the (lower) fixed mortgage payments to much higher APR rates, and dreading that eventuality, are now probably looking forward to that. With base rates so low, their APR will almost certainly be lower, or at par, with the fixed rates they have at the moment. Even credit crunch has a silver lining for the UK borrowers.

 

Prepare for the Christmas, honey!

Ho.. Ho.. Ho.. 

 

More on this story here

Is UK Plc Heading for Deflation?

Deflation generally refers to a persistent decrease in the general price levels. Some economists refer this to a decrease in the money supply and credit.

After seeing surging petrol prices and spiralling energy & food costs, many struggling home owners are welcoming a chance of a decrease in these prices. After all Christmas is around the corner and every one needs a break from money worries for a while.

No one, not even the economists, like inflation. So decreasing prices should be good news, right? Yes and no! Every thing is good but only in moderation.

Lowering prices is great but continuously dropping prices over a period of time means that there is a consistent lack of demand in the economy (i.e. deflation) – which represents a major problem for every country and every economy around the world.

A deflationary spiral is often associated with the Great Depression of 1930s America when unemployment reached 25%, i.e. one in every 4 people lost jobs. Many people lost businesses and houses to lenders via repossession. Even UK suffered from a period of deflation during the First World War (read more on deflation here).

Ominously, the great depression of 1930s America started with a banking crisis. With recent credit crunch, we hope that the history does not repeat itself again.

Deflation, or continued low demand is the symptom of a depressed economy and a depressed economy is frequently associated with falling asset prices such as house prices.

For a home owner, whether owner occupier or a landlord, depression posses two major problems:

1. It represents falling asset prices, such as house prices
2. It increases the size of a home owner’s debt percentage

So what can a home owner, or an investor do to protect themselves?

1. Sell up now, anticipating further falls and then potentially re-enter the housing market when prices are even lower; or
2. Hold on to your property and see if you pay down your debt some how.

This is probably not a good time to buy property simply because the further falls (or deflation in asset prices) are widely anticipated.

For the same reason this is not a good time to sell the property either, unless you must. However if you are facing financial hardship or looking for ways to stop repossession then that may be a different story.

Repossession Is Not End of the Story

Imagine this: a home owner falls on hard times. He (or she) tries to sell the property and can’t do that either in good time, due to negative equity or for the price he would ideally like to achieve.

Unfortunately the home owner can find a suitable sell and rent back company to sell the property to. Lender repossesses the property. End of debt problems, right? Wrong. This does not end there!

Should a home owner ignore the arrears problems, and let the mortgage company repossess the property, it will not be the end of the home owner’s debt problems.  The  lender can come after the borrower for years afterwards for the unpaid debt or arrears.

The process of repossession involves the mortgage company taking ownership of the property and then selling it.  They may do this at a property auction or through an estate agent.  Legally they are obliged to sell the property for the best price that can reasonably obtain.

However even after the mortgage lender takes a property into their possession, interest will continue to be charged until the day the property is finally sold. Any legal costs, estate agent or auction house fees and any other charges are also added to the mortgage. Any surplus of the sale are sent back to the borrower. However if proceeds of the sale did not cover all the debt in full then former borrower faces a "shortfall debt". This means that the money is still owed to the lender even after possession.

How long after the repossession can lenders seek the recovery of the debt?
A very long time – is the short answer!

In England, Wales and Northern Ireland, law permits the lender to pursue the borrower for up to 12 years to begin the process of obtaining repayment of the shortfall debt. In Scotland this period is restricted to 5 years.

Advice for Home Owners Facing Repossession
They should avoid throwing in the towel and do every thing they can to stop repossession of their home. We are not saying that most home owners do not do this. However it pays to stay calm, collective and explore every possible avenue. Speak to all friends and family, seek advice from govt agencies like Citizens Advice Bureau etc and seek advice. At least you will have the  satisfaction that whatever the outcome, you have explored all possibilities and did your best in stopping repossession of the property.

Britain’s Economic Prospects Are Grim – Going Forward!

A report from the OECD, a rich-country think-tank, released recently said that out of world’s seven biggest economies, out for Britain’s the bleakest because it is the only one facing recession this year. So the government’s often repeated claim that economic woes are global, and well-managed Britain is better placed than most to deal with them are probably not accurate.

Not long ago the Chancellor of Exchequer, Mr Darling said that the economy was facing worst outlook in 60 years. He clearly meant well but things are perhaps not as dramatic as it sounded first because:

1. Things are not as bad as rationing in 1940s
2. The three-day working week and 25%-plus inflation of the 1970s was one of the worst times in recent memory
3. Britain has some way to go before it has 3m unemployed of the early 1980s  (although many people are predicting it but we aren’t there yet)

People have been predicting the housing bubble to deflate, unemployment to rise. This will undoubtedly mean that more people will be trying to stop repossession of their homes.

The Economist, a well respected newspaper says that it is pretty obvious that British economy has serious problems. To quote Economist:

“Britain’s housing bubble was more dangerously inflated than most countries’; its households are more indebted; financial services account for a bigger share of its economy; and its government, thanks in large part to Mr Brown, spent with both hands during long years of unremitting economic growth, leaving little scope for fiscal fine-tuning now.”

So here is the bad news:

• Bank of England says that growth will be flat for a year
• Sterling has lost 15% of its trade-weighted value over the past year (5% over the past month alone).
• Inflation is widely expected to hit 5% this year pretty much meaning that the chances of interest rates coming down are remote.
• Unemployment is edging up
• Housing market is collapsing: prices have fallen by 11% in a year, and the number of new mortgage approvals was down by 71% in July from last year.
• People are expected to spend hardly anything this Christmas as economic uncertainty continues.

Contrast this with United States.

• American economy is growing again
• Dollar is bouncing back
• Some people reckon that the housing crisis may already have touched bottom.

Reason? Federal Reserve (which is equivalent of Bank of England) handed out almost $180 billion so that the money could be pumped into the economy.

Britain’s prospects appear grim in comparison and we just have to take it n the chin. There is no easy fix, no return to the days of plucking credit cards and mortgages off trees. Sell and rent back industry will continue to do well as stopping repossession will be priority for home owners.

Sterling was overvalued and is now falling (quite rightly). Which means that exports will improve as it becomes easier to sell abroad. So the manufacturers will be able to create a few jobs in time. Housing was grotesquely overpriced; prices are slumping.

These are painful but necessary realignments. We have bad times ahead. We just hope that these times do not last very long.

Tips on how to Sell House Fast

When a house owner makes up his or her mind to sell their house, they just want to sell it fast.

However the only thing that stops them sell the house fast as they wish is: condition of their property and the price.

• May be the asking price for the property in its current condition is not a true reflection of the asking price.
• May be the location is not right.
• Or may be, just may be the owner has high perceived value of his or her house. Or they are comparing the value of their house with the asking price of other properties in the area – regardless how much they are actually selling for.

It could be any number of reasons. However there are some basic, but excellent tips on how to sell house fast – in fact in record time. Follow the link for more information on this.

It is Not Just Lenders Who Can Repossess Your House

When Mrs Coombs was thrown out of her home, it felt her world had simply fallen apart. The fact that it was only six weeks before Christmas made things even worse.

Watching her house being repossessed was a devastating experience. She was forced to move in with her sister and send her two teenage children elsewhere.

Why did her house got repossessed? No, it wasn’t unpaid mortgage payment arrears. This time it was Inland Revenue who repossessed her house for unpaid a minor debt.

Mr Coombs, speaking to Southend Echo, believes many people are being forced into bankruptcy and repossession after being unable to clear relatively minor debts. Currently, a homeowner can be declared bankrupt if they have more than £750 of debt which they cannot meet.

Moral of the story:

It is not just mortgage lenders who can, or will, repossess the house for unpaid bills. Other government departments, especially Revenue and Customs have wide ranging powers and can come after you for unpaid VAT, tax or other bills. So it helps to pay close attention to reminders sent by govt departments, as well as to usual lenders.

Stopping Repossession

If you are in unfortunate situation and facing repossession then you can visit any of the following links for further information on how to stop repossession 

• Frequently Asked Questions on Stopping Repossession
• Stop My Repossession Today

 

If you are looking to sell your house fast before bailiffs can get to you then getting in touch with sell and rent back services can help.