Consumers should be on guard against sale and rent back rip offs

A homeless charity official has recently stated that many sale and rent back companies are ripping off homeowners, and with this type of scheme becoming increasingly popular amongst desperate homeowners that are trying to avoid repossession homeowners need to be on their guard.

Officials are concerned that some sale and rent back firms are paying way under the odds to consumers for their homes, with some homeowners getting less than half of the value of their property according to reports. In addition some firms are promising lifelong tenancies to the former homeowner but are then backing out of this promise, forcing the homeowner to find somewhere new to live.

One concerned charity official stated: “People are being ripped off. We are seeing people who are getting only 50% or 60% of the value of their homes instead of the 70% to 90% they should be getting. Many of the promises that are made that people can stay in their homes for the rest of their lives are not being honoured.”

However, sale and rent back industry professionals state that their service is actually helping many people that would otherwise face being repossessed and would lose their home as well as face financial woes and ruin their credit.