sell and then rent back?

Question

is this a good idea or are there hidden dangers when doing it. there are a few companys advertising on tv

Answer 1

From what I have seen and read it is a scam. They ask you to sign over the home to them, they collect rent, do not pay on the mortgage that by the way is still in your name, you get tossed into the street.

Answer 2

It all depends why you need to sell and then rent back the same property from the now new owner
reasons you may want to sell 1. you need to move from this community/ area, 2. you want to take advantage of the high price you may be getting and need time to find another suitable place maybe in another province , even same province but where prices have not skyrocketed and you can buy something for a reasonable price and use that extra cash you made for new furniture, or whatever a car? a much wanted vacation?
3. you feel that renting gets you out of a lot of responsibilities , more so if the house is opld and you may soon have to change the plumbing, pipes heating and all that really can cost a lot !
Its an individual priority why they would need to sell and then rent the same ! one cannot advise but give reasoning
Whatever you do , think well ahead of time!
Good Luck

Answer 3

There are also alot of people on Yahoo Answers that have done that, only to discover that they gave away their house for a very small amount of money, signed over the title to a company, and the mortgage loan is still in the name of the homeowner..and is NOT getting paid.

Very easy way to lose you house.

Answer 4

If you sell and rent back, you no longer have any ownership interest in the property. Why would you do it ?

Answer 5

Not really worth doing it unless you need money for urgent stuff and plan moving in a short time...

Answer 6

do not sell,rent it out