You may remember the “rent to own” craze that seemed to grip the real estate market not too long ago. Eager buyers were willing to engage in almost any deal just to have the opportunity to find a little slice of real estate and call it their own. Yet when not even the most conniving of lenders would touch these real estate hopefuls, some creative contracts were cooked up between property owners and would-be homeowners, and before long you were face to face with a rent to own contract that would allow the family to move into the home and have a portion of their monthly rent be counted toward a down payment. 

Sadly, many such schemes went bad because part and parcel for the reason for such creative financing was the family’s inability to build or maintain good credit, and before long they would default on the agreement, thus negating their option to buy the property. Thus, not only was the money already paid forfeited, but instead they might be evicted quickly and decisively when an actually qualified buyer would appear on the horizon. 

Sell to rent is now a new buzz that is making the rounds and some hold that it is a simple reversal of the rent to own. Many a homeowner only enjoys this status because of their willingness to engage in some creative loan process which ruthless lenders more than happily foisted upon them. Thus, with adjustable rate mortgages and interest only options, it is now becoming apparent that many a homeowner is not able to afford the home they are living in, and although they would love to stay, the only thing standing between the homeowners and foreclosure is a preemptive sale. 

This is where the private investor comes in. With a sell to rent deal, those who are facing foreclosure at the end of a less than stellar career as homeowner have a last ditch chance of living in their homes while not suffering from a major credit disaster that could lead to not only a foreclosure on their records – which is bad enough – but if the process drags on too long, it may also affect other credit vehicles and thus might just be paving the way to a Chapter 7 or Chapter 13 bankruptcy. 

Thus, whether or not “sell to rent” is the new “rent to own” is somewhat immaterial; instead, it is a very real, and very possible way out of a home mortgage disaster that before long will claim more and more homeowners as victims and will leave a plethora of home unoccupied, foreclosed, boarded up, and as general eyesores in the neighborhoods, thus driving down home prices even further! Taking advantage of this kind of program will eliminate the danger for a lot of homeowners, while keeping the homes in the neighborhood occupied by families who care about them. 

Last but not least, consider the considerable investment opportunities that will spawn a whole new segment of the mortgage and real estate industry! Seeing the issue from this point of view makes it a most profitable venture for all involved.