Are you experiencing temporary financial hardship?
Are you behind on your mortgage payments?
Has the bank started foreclosure proceedings?
Are you looking for a way to stop the foreclosure and remain living in the home?
If you answered yes to any of the above questions, a sell and stay program might be the answer you are looking for.
This little known strategy can be an easy way to stop foreclosure and allow the family to remain living in the home. In this article, we explain the sell and stay method, discuss the pros and cons, and give you the information you need to decide if a sell and stay program is the answer you are looking for to stop the foreclosure of your home.
What is a 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.
Who Offers this Program?
The sell and stay program is one of a kind and it is offered just by a couple of real estate holding companies, such as OutFactors. The program is planned around the homeowner, with a very easy application process and fast approvals. The best part is that with OutFactors, there are no qualifications for credit or income.
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 implement the program properly, there is quite a bit of paperwork that takes 7 to 10 days to complete. So if you are faced with foreclosure, you want to make sure that you do not wait until the very last moment to initiate the sell and stay process.
Pros of a Sell and Stay Program
The sell and stay method has quite a few pros 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 is in need of repairs or improvement, the real estate holding company will take care of completing the work at their expense. The company will also pay for any future major repairs and maintenance.
- All future insurance and real estate taxes will be paid by the real estate holding company.
- You can remain living in the home that you love.
- You may have the option to repurchase your home.
- There are no credit or income requirements.
As you can see, a sell and stay program has quite a few appealing benefits that could be the right solution for your family, but you need to be aware of a few things.
Cons of a Sell and Stay Program
Here are some of the cons of a sell and stay program that you need to take into consideration:
- A security deposit is required, as is typical with residential leases.
- You will need to pay rent to the real estate holding company.
- Under a lease, any changes to the property will be limited to what is allowed in the lease.
- If you cannot make the rent payments, you could be evicted.
- In a lot of cases, the real estate company will require you to perform minor home maintenance while they cover any major replacements and repairs.
- You will lose any increase in value if you do not repurchase the home.
Although there’s definitely some drawbacks, a sell and stay program is one of the very few options that will allow you to stop foreclosure and continue to live in your 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 you have to make sure that you carefully weigh all of the pros and cons before deciding if a sell and stay program is the right choice for you. We highly recommend that you decide to work with experienced and knowledgeable companies, like OutFactors, who will answer any questions that you might have and put everything into 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.
We’d like to invite you to visit OutFactors.com for more information and to get answers to all of your questions. We may be able to help you save your home from foreclosure, and your family could continue to live in the home that they love.
We hope this article was informative and that it provides you with an additional option to stop a foreclosure that you might not have been aware of before.
Stop Foreclosure Using a Sell and Stay Program | OutFactors — Dallas, Texas