Stop Foreclosure Using a Sell and Stay Program
What is the Sell and Stay Program?
A sell and stay program stops foreclosure by using a sale and leaseback agreement. Under the terms of a sale and leaseback agreement, a homeowner agrees to sell their home to a buyer, the buyer pays the lender what is owed, pays the rest of the purchase price to the seller, and then leases the home back to the original owner. This immediately stops the foreclosure, and the homeowner remains living in the home.
How it Works
The program is simple but very effective in stopping foreclosure and allowing the family to remain living in the home. Here are some key features:
- To prevent the foreclosure, the lender is paid the outstanding mortgage payments and fees.
- The homeowner is paid the fair value of the home minus closing cost, the amount paid to the lender to stop foreclosure and to remove all liens.
- Ownership of the home transfers to the real estate holding company, simultaneously the family is given a long term leaseback so they can remain living in the home.
- The family is provided the opportunity to repurchase the home in the future if permitted by state law.
To properly implement the program, there is a fair amount of paperwork which takes 7 to 10 days to complete. So if you are facing foreclosure, you want to be sure you do not wait until the last moment to initiate the sell and stay process.
Who Offers this Program?
The sell and stay program is unique and is only offered by a few real estate holding companies, like OutFactors. The program is designed with the homeowner in mind, with a super simple application process and fast approvals. Best of all, with OutFactors, there are no credit or income qualifications.
Pros and Cons
Pros of a Sell and Stay Program
There are many pros to the sell and stay method that you should consider including:
- The foreclosure is stopped immediately, and any equity is preserved.
- You get paid cash for the remaining equity in your home.
- Your credit rating is not only protected from further deterioration but will improve with payment of the past due mortgage payments.
- If your home needs repairs or improvement, the real estate holding company will complete the work at their expense. They will also pay for all future major repairs and maintenance.
- All future insurance and real estate taxes will be paid by the real estate holding company.
- You remain living in the home you love.
- You may have the option to repurchase the home.
- There are no credit or income requirements.
As you can see, a sell and stay program has many appealing benefits that may be the right solution for your family, but there are a few things that you need to be aware of.
Cons of a Sell and Stay Program
Here are some of the cons you need to take into consideration:
- As is typical with residential leases, a security deposit is required.
- You will be paying rent to the real estate holding company.
- Under a lease, changes to the property are limited to what is allowed in the lease.
- If you do not make the rent payments, you may be evicted.
- In many cases, the real estate company will require that you perform most minor home maintenance while they cover all major repairs and replacements.
- If you do not repurchase the home, you will lose any increase in value.
Although there are some definite drawbacks, a sell and stay program is one of the very few options that allow you to stop foreclosure and remain living in the home.
Is a Sell and Stay Program Right for You?
This is a great program that can be a win-win for many families but make sure you carefully weigh the pros and cons before deciding a sell and stay program is right for you. We recommend that you only work with experienced and knowledgeable companies, like OutFactors, who will answer all your questions and put everything in writing.
Want More Information on the OutFactors Sell and Stay Program?
Sooner or later, we all hit a rough patch. With the sell and stay program offered by OutFactors, you can save your home and get the time you need to work out your financial challenges. We are a very experienced real estate holding company that will treat you with the utmost respect and dignity.
If you have questions or would like additional information we invite you to visit OutFactors.com, and if you are ready to get your free no-obligation Sell and Stay offer click here.
We hope this article was informative and provides you with another option to stop a foreclosure that you may not have been aware of previously.
539 West Commerce Street, Suite 1205
Dallas, Texas 75208
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