In today’s scenario of economic crisis and the credit crunch it has become a big challenge for people to meet their monthly financial commitments such as home mortgages, credit card bills and so on. This has led to a steep increase in the number of people faced with mounting debts, growing home foreclosures and families losing their homes.  Most of the home owners are forced to sell their homes to release the equity from it to pay off loans.  This making this difficult decision is also laden with many problems such as

• You may have to rent another house to live and the rental rates are high unlike the home prices.
• You will have to change shift your children to a different school.
• You might be forced to take another job to meet the additional expenses.

In these circumstances, ‘sell and stay’ concept is a good alternative for the home owners. The concept of sell and stay Australia is simple. After selling your house due to the overburden of mortgage and rent the same house from the buyer.

Benefits of “Sell and stay” scheme:

1. You sell your property to release the equity in it to meet to pay off outstanding loans and bills, but stay in your home as a tenant.
2. You make monthly rental payments only. Sell and stay rents are cheaper than the normal rents you pay otherwise. The money thus saved can help in re-claiming the house.
3. The mortgage rescue scheme will oversee and monitor your tenancy.
4. You can request a rent holiday of 6 months.
5. The legal expenses are covered in this process.
6. Only you know that you no longer own the property.
7. Your house will be sold to a buyer who is an approved and professional landlord.
8. People who are compelled to sell their house due to divorce or ill health can benefit from this scheme and claim the ownership later on when they get back to better financial position.

Normally the housing companies offer “sell and stay” schemes. They offer a confidential and their sympathetic service and the transaction will be completed within four to six weeks. They would even take the responsibility of liaising with the lenders and their solicitors.  They would help you to find unsecured loans to deal with your current debt issues without letting the future landlord know about your circumstances. Usually the scheme allows you to stay in the house for a period of up to 5 years. The accredited landlord may offer you 2, 3 or 5 year tenancy plans under the “sell and stay” scheme.  After this period, you can buy back the property at a previously agreed price with clear terms and conditions or request the house to be sold.  You also have the option of moving within the scheme if your circumstances change. All through your tenancy period you can improve your financial situation without having to relocate. You can sell the property and vacate the house at an appropriate time scale. They organize an independent valuation of your property and find solicitors for the sale. If you find your income and home equity comfortable enough you can go in for re-mortgage to buy back your house.