Bankruptcy - Sell to Rent Back

blacksheep999

Hello and good morning everyone,

I have being researching the many factors involved with Bankruptcy for a number of weeks now as I'm considering taking this action in the near future.

There are many many companies out there who offer to purchase your home for you to rent back, thus effectively freeing me up for BR.

One of these companies also have an additional option to Buy back the property after a fixed agreed period of time.

Here are the bullet points from their website:

• One of our valuers comes out to discuss your options & give you a true market value of your home

• We buy at 100% of the valuation and take off 15% as your deposit for when you buyback
  

• We provide all of the legal documents free of charge

• We usually refund all buying costs associated with the sale

• We can arrange a term that suits you from 1 to 20 years

• We calculate the market value for your house at the end of your term and agree a price set on that
  

• When you buyback (which you are NOT obliged to do if your circumstances change) we discount your house by 15% which can act as your deposit in most cases
  

• If you would prefer to sell your house outright for cash then we can pay you cash in as little as 48 hours PLUS we organise for you live in your own home for up to 3 months for FREE whilst you relocate.

I just wondered if anybody had any experience of dealing with a company such as this and had any advise to offer?

I realise that the point "We buy at 100% of the valuation" is a bit misleading as they set the valuation.

But would I be right to say that the valuation they come to is largely irrelevant if I intend to declare myself BR anyway?

Any guidance would be appreciated.

Thank you.

wok_boy

Sorry wouldn't touch those kind of companies with a 10 foot bargepole. Speak to CCCS and other debt related charities.

blacksheep999

Thanks for the quick reply.

Been there, done that.

CCCS told me all creditors would accept reduce payments - none of them have, they're all pushing for court action now after 18 months of a DMP.

I can't pay CCCS more than I do right now as I was made redundant and now have a job paying less than 50% of my previous salary.

But it's not enough. CCCS keep writing to my creditors but it makes no difference.

wok_boy

If you don't mind me asking how much debt are you in? So others maybe able to advise you what the best course of action to take.

blacksheep999

£28k......

dojoman

I used one of these companies 11 months before I went BR, (BR was not on the horizon at the time) I wanted to free some cash up for my business, got 85% of the market value which was about right as I had quotes from around 4 companies. As it was my company went tits up anyway and I had to go BR, told the OR about the sale of the house and nothing was said. As a Landlord I cannot fault them, I have spoken to them a couple of times but they have not been near since the deal was done, any faults I have reported have been sorted within days so I am quite happy at the moment with the arrangement. If you know you are going BR then the house will have to be sold at market value, but I would be very careful because if something sounds too good it usually is.

blacksheep999

Dojoman - Thank you for the information, much appreciated. Do you mind me asking which company you used?

dojoman

I have sent you a pm!

Sunnylooloo

Hi BS - sorry can't offer a lot of advice but so far (touching wood as we speak) all my creditors accepted reduced payments but with a review every 6 months or so. So I am really sorry that you seem to be having so much trouble. I dealt with my creditors myself with the help of letters and advice from National Debtline and so far so good - It doesn't stop completely all the calls and letters (much of which are just computer generated) but as long as my payments are up to date they seem fine (obv shoots to bits your credit)

It seems you have already sought advcie from the one of the debt charities.

RE: your home - I'm sorry again I can't really help although I would quote the old addage, if it seems to good to be true, it probably is too good to be true and I am not sure I would trust these people.

Good Luck

blacksheep999

Sunnylooloo - thank you, I appreciate your reply.

immoral_angeluk

I wouldn't recommend companies such as those. If you are in arrears with your Mortgage and they are taking repossession action you would be better looking at the Mortgage Rescue Scheme than going through a company who are designed to make money out of you...