During these uncertain times, many people have lost their job, business, or have become ill for an extended period causing their families to struggle financially. While you are experiencing the temporary financial hardship, the bills pile up and you become behind on the mortgage payments. Even after you regain financial stability, recovering from the loss of income and paying the past due amounts can be an impossible task. You again have the income to pay the monthly mortgage but do not have the 5 monthly payments plus late fees and cost the bank is demanding to stop the foreclosure.
If this sounds familiar, using a sell and stay program to stop the foreclosure might be the answer you are looking for.
Many people have never heard of a sell and stay program but the program can be an easy way to prevent foreclosure and allow the family to remain living in the home. In this article, we will review the pros and cons of a sell and stay program so you can decide if the program is right for you.
What is a Sell and Stay Program?
A sell and stay program can prevent foreclosure with a sale and leaseback agreement. The homeowner signs a contract to sell the home to a buyer who is in the business of buying and selling homes, like OutFactors. The buyer pays the lender what is past due and leases the home back to the seller.
Who Offers this Program?
A sell and stay program is only offered by a few real estate investment companies, like OutFactors. This unique program was created with the homeowner in mind and has a super simple application process and quick approvals. Best of all, with OutFactors, there are no income or credit checks.
How does a Sell and Stay Program Works?
This simple program is very effective at preventing foreclosure and the family remains living in the home. Here are the key features:
- To prevent foreclosure, the bank is paid all of the outstanding mortgage payments, costs, and fees.
- The buyer then pays the balance of the cash to the homeowner minus typical closing costs and any payments to remove existing liens or taxes that are due.
- Title to the home transfers to the real estate investor and simultaneously the family signs a long term leaseback to remain living in the home.
- The family is granted the right to repurchase the home in the future (if permitted by state law).
As with the sale or lease of any home, there is a lot of paperwork which takes 7 to 10 days to complete. So if you are facing foreclosure, do not wait until the last moment to start the sell and stay process.
Now Let’s Look at the Pros of a Sell and Stay Program
There are many advantages of a sell and stay program that you should consider including:
- The foreclosure is prevented and the owner’s equity is preserved.
- You get paid cash for your equity typically within 10 days or less.
- Further damage to your credit rating is prevented and your rating will improve with the payment of the past-due mortgage payments.
- If the home needs repairs or improvements, the real estate investment company will complete the work at their expense. Per the leaseback agreement, the investor is required to pay for all future major repairs and maintenance.
- The real estate investment company will also pay future real estate taxes and insurance.
- Your family remains living in the home they love.
- You are granted the option to repurchase the home (if permitted by state law).
- There are no income or credit requirements.
Although a sell and stay program has many great benefits there are a few things that you need to be considered before you decide the program is right for you.
Now Let’s Look at some of the Cons of a Sell and Stay Program
Here are some of the things you need to take into consideration:
- As with almost every residential lease, a security deposit will be required.
- Going forward, you will be paying rent to the real estate investment company.
- Since you will no longer be the owner, any changes you wish to make to the property will need to be approved in advance.
- Failure to make the rent payments will cause you to be evicted.
- Under most leaseback agreements, you will be required to perform minor home maintenance at your expense and the new owner will pay for all major repairs and replacements.
- If you do not exercise your option to repurchase the home, you will lose any increase in value.
As you can see, there are some drawbacks to a sell and stay program but most people find them to be reasonable and minor.
Is the Program Right for You?
For many families, this is a great program that stops the foreclosure and allows the family to remain living in the home they love but it is not for everyone. We recommend that families carefully review their options, discuss the program’s pros and cons before deciding a sell and stay program is right for your family.
If you decide a sell and stay program is the solution you were looking for, we urge you to only work with experienced and knowledgeable companies, like OutFactors. They will answer all your questions and put everything in writing.
Want More Information on the Sell and Stay Program Offered by OutFactors?
At some point in our lives, we all hit a rough patch. With the OutFactors sell and stay program we can help you get the time needed to overcome your financial challenges. We invite you to visit OutFactors.com for additional information, and if you are ready to get your Sell and Stay offer click here. The people at OutFactors are super easy to talk to and will treat you with the utmost respect. Call OutFactors today to discuss your options. There is never a cost or obligation.
We hope this article was informative and provides you with another option to prevent foreclosure that you may not have been aware of previously.
539 West Commerce Street
Dallas, Texas 75208
Use a Sell and Stay Program to Stop Foreclosure | OutFactors — Dallas, Texas