Skip the Auction, Sell to Rent

Daniel Abadi

Foreclosures are unfortunate, heartbreaking, and unfavorable for practically everyone involved. Having knowledge about the economics of it all isn’t required to feel for someone going through this process. In addition, the process is a costly one for more than the homeowner. Others economically affected during a foreclosure include neighbors and the local government.

Although there are ways to avoid foreclosures, most of the claims are taking advantage of someone in economic distress and desperation.

Sale-Leasebacks

A simple, honest way for someone in this situation to keep their home is to arrange a leaseback agreement with an investor. Leaseback agreements are a convenient way of providing tranquility and stability because, if arranged correctly, both parties could end on the winning side of the coin.

The struggling homeowner sells the property to an investor who understands his situation and arranges a respectable lease agreement. The homeowner benefits by staying at home and keeping the kids in school; while the investor receives monthly rent payments and appreciation for the home.

Foreclosures around the Country

According to the Board of Governors of the Federal Reserve System (US), delinquency rates on single-family residential mortgages stood around 2.13% for Q1 of 2022. Although this is lower than the Q1 number of the past 15 years, states like California and Florida measured more than 10,000 foreclosure starts in the first six months of 2022.

Around the country, foreclosures are trending upward. According to MarketWatch, “In January there was a seven-fold increase in foreclosure starts as compared to December, with roughly 33,000 loans referred to foreclosure, according to a report from mortgage data and analytics company Black Knight.”

A Solution all around

Sale-leaseback agreements will help save time and money for everyone involved in a foreclosure. From the homeowner, the neighborhood, to the local government, avoiding this costly process could prove substantially beneficial.

The homeowner gains the flexibility to stay at home as a tenant. On the other hand, the investor earns money in rent and appreciation, all while saving a family from an undesirable situation.

If you or someone you know finds yourself in this situation, tell them to visit Sell2Rent’s website. Sell2Rent specializes in connecting investors with struggling homeowners to carry out successful leaseback agreements.

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Skip the Auction, Sell to Rent

Foreclosures are unfortunate, heartbreaking, and unfavorable for practically everyone involved. Having knowledge about the economics of it all isn’t required to feel for someone going

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