Welcome, visitor! [ LoginRSS Feed  |   | 

How To Make Money When You Can’t Make Your Repayments

Blog, Rent To Own, Vendor Finance March 23, 2015

Depending on where your rent to own home, you may just be able to make money even if you can’t make your repayments.  By this, I mean if you are proactive enough and can see that you are not going to be able to make your repayments, you can try and negotiate to sell the property and make some money if your property has increased enough.  I have found this to be the case in Sydney and in surrounding cities and it will be dependent on your contract.

The worst thing that you can do is just sit there in denial waiting for some big miracle or a big lotto.  It is critical that you learn what is realistic financial.  If you can see that you will be getting into trouble, do something proactively and start planning what you will do.  If you sit there and get a default notice work out something before you get a termination notice.  If you know that you it is will be long term then it is best if you discuss selling the property and taking some money with you.

The key is to be realistic and get out of the denial stage.  Denying the problem and hoping that it will work out will get you kicked out and with a debt that will include solicitors fees as well.

If you acknowledge that you will lose the property than you can work it out to make some money.  I’ve had one client where they were going to declare themselves bankrupt.  This is a bad idea when you are rent to own as you could lose the right to own a property and to be able to refinance.  However, we worked out a budget and gave them advice on how to deal with creditors.  They have stuck to a realistic plan to get back on track and they are on their way.

Know when you are in too deep and ask for help.  Being in denial could make you lose opportunities.

Christina from Nexfer

We have been running a property investment business since 2000 and have specialised in rent to own properties. This is because not only do we have a positive cash flow but we enjoy helping families move into their own homes. To improve our process, we also became mortgage brokers who understand the issues surrounding refinancing. With over 17 years experience, we can share our insights for both the investor and the purchaser and can also provide consulting service. Please feel free to ask questions.

Sponsored Links

Leave a Reply

You must be logged in to post a comment.

  • Rent To Own Home Traps

    3 Shocking Rent To Own Home Traps that No One is Telling You!

    by on July 1, 2013 - 15 Comments

    All Rent To Own Home Programs supposed to create a win-win plan between home buyers and sellers, unfortunately this is NOT always the case. There are some Rent to Own companies which focus more on their own benefits without looking after the home buyers which causes them to be trapped in the program. If you were thinking of […]

  • vendor finance or rent to own?

    What type of contract is right for you?

    by on August 15, 2013 - 4 Comments

    There are 2 common contracts: 1) Lease option – this is where you have the right to purchase the property.  With the lease option, you are not required to pay stamp duty and have a set time frame to refinance 2) Vendor finance – where you pay stamp duty and you have a lot more […]

  • Alternative Home Ownership Solutions

    3 AlternativesTo Be Home Owner Even If Rejected By Banks

    by on March 29, 2013 - 2 Comments

    Most of us go to the bank to get our Home Loan. However, when the bank says “No” to our loan application, we give up! We give up our dreams to own our homes. I still remember when I apply the loan for the first time and  got REJECTED! I was devastated and embarrassed about the setback, they told […]

  • ROAD TO CLEAN CREDIT REPORT

    The Secrets To Having A Clean Credit Report

    by on August 7, 2013 - 2 Comments

    Before Rent To Own Homes Program deadline, we have to be sure we have a clean credit report, Otherwise our home loan will NOT be approved by the Bank. This will cost us to miss our contract period and risk losing our deposit and any accumulated credits. Rent To Own Homes Program Can Not Fix […]

  • How to Get A Rent to Own Home - 5 criteria points

    by on July 11, 2015 - 0 Comments

    The Great Australian Dream is to Own your Own Home,  We get hundreds of phone calls asking us to give people a rent To Own property.  There are so many people that are just sick of moving again and again.  The questions is ‘how do you choose the best person’ ?  Why didn’t we Get […]