Sell house and rent back

[PatriciaH]

Has anyone any links to the pitfalls of doing this? i know someone who wants to do it , ( marriage split ) im sure its been on telly a while back saying it wasnt a good move to make , i would hate him to loose his house .

[solitude]

Seems like Tonight or one of those investigative shows did something on this - interviewed several people who ended up being evicted and had no legal recourse(?) - involved big-name banks too. I think you'd need a good lawyer to go over the paperwork with a fine toothcomb. I'd avoid it.

[puss_boots]

My sister in law looked into this and found that it was NOT a good idea. The rent they charge is very high and if you default then they are very quick to get you out and you are left with nothing. BEWARE !!!!!

[puss_boots]

Just to add they do not pay you full value of your house so while it may seem attractive to have some dosh in your bank it is these companies who gain the most. Do what me and mrpuss did......ie sell the house, put your money away and rent privately it works for us.

Trouble is the housing market is bad at the moment so really not a good time to do anything. Stay put and sit it out till things improve.