advice re buy your house for cash schemes

Misty0512

My Husband owes 50k to various creditors (including Inland Revenue who are just about to declare him bankrupt)

We owe 40K on the mortgage and feel our best option is to sell the house as we have equity in the house. We could afford to pay of debts and hopefully start again.

We have been looking at these companies who buy your house for cash with an option to rent for a period of time as well.

Any one have any advice regarding this??

fermi

This is what Martin says here

Sale and Rent Back. Suitable for: Very poor to poor credit scorers, but be careful

This is where you sell your house to a company, but then are allowed to continue living there paying rent. It seems an attractive option for some, but as shown in a strong feature by BBC Radio 4’s Money Box programme in Feb 08 it's no where near as good as it sounds for many people.

You could only get 50% of your home's value, the rental agreement mightn't be secure and there's even a risk that the person you sell the house to may have it repossessed themselves. Consider with care.

Further info: MoneyBox's Article, MoneyBox report