Are you worried that you may not be able to make your mortgage payments and your lender may foreclose on your home? Take a deep breath. You are not alone, and there are ways to avoid foreclosure. We’re here to help by explaining how a sale leaseback program can act as a foreclosure solution to keep you in your home until you’re ready to move.

What Is a Sale Leaseback?

A sale leaseback is a strategic financial move where you sell your home to a buyer, such as a fast cash buyer company, and then lease it back from them for an agreed-upon amount of time. In other words, your buyer becomes your landlord.

Sell Your Home and Rent It Back: Pros and Cons

One of the primary benefits of a sale leaseback is that you won't have to pack up your bags and move out immediately.

Selling and renting back your home can benefit both you and the buyer. For example, the purchase price may be enough to pay off most, if not all, of your mortgage loan so you can avoid the consequences of a foreclosure. Other advantages may include:

• Low rent payments instead of high mortgage payments
• No credit check required
• Faster than traditional house sales

Of course, you will want to be on the lookout for legitimate fast cash buyers or investor companies to work with to avoid foreclosure fraud and scams. For example, if you sign over the title of your home without signing a proper leaseback agreement, the buyer can demand that you leave your home immediately. 

While leaseback agreements do require you to move out of your home eventually, you will know your move-out date and any other expectations before you sign the agreement. This can give you the time to make plans for your moving day and turn it into a step forward for your family. 

A Sale Leaseback as Your Foreclosure Solution

Foreclosure Consequences

Foreclosure is a harsh reality that many households face in which they lose their home to their mortgage lender. As soon as your lender sells your home, you must leave immediately. A foreclosure also negatively impacts your credit score for up to seven years, which may make it difficult to secure financing in the future. 

Selling and Renting Back Your Home

In contrast, a sale leaseback can help instead of hurt your financial situation. 

When you sell your home and rent it back, the proceeds from the sale cover the outstanding payments owed to your lender. This means your credit report will not be impacted by a foreclosure since the foreclosure didn’t happen.  

This arrangement creates a stable environment, allowing you time to rebuild your life without having to uproot your family immediately.

The District PHX: Unlock & Stay Program

At The District PHX, we want to help homeowners unlock their home’s equity and put the control back in their hands. That’s why we have a sale leaseback option: our Unlock & Stay program. 

This program is designed for homeowners looking for equity access or foreclosure solutions. Advantages of the program include:

•  A seamless transition from ownership to a secure leasing arrangement 
• We cover HOA or homeowners insurance fees
• No realtor required
• We work with you to create an agreement that works for everyone

See if Lock & Stay Is Your Foreclosure Solution

Selling your home and renting it back can help you avoid foreclosure so you can focus on your next steps to a successful future. However, it’s important to make sure that this is the best move for you before making any final decisions.

If you're planning your options and seeking foreclosure solutions, contact us today to see if Unlock & Stay is the right fit for you.