An interesting article at The Fool here A dangerous way to get out of debt, with some interesting responses from various people, including some of those in the 'industry'.
A serious point is raised by Anthony Lyons of the firm UK Repossession Angels which is that for some people it is the last resort and that there is a place in the market for ethically run firms that provide this service.
Another issue he doesn't raise is what happens when the housing market does start to decline and these firms end up paying more for peoples' houses than they are worth. The firms have a built in margin of 15% or more, but what happens if the house values fall below this? Do the firms sell up quick, evicting their tenants as they go? Or do they hang on and hope to earn their income from continued rents?
In conclusion I tend to agree that there are major pitfalls with this way of getting out of debt and its only a very last resort other than just letting your bank or building society repossess your home.
Sunday, 3 February 2008
Sell your home & rent it back?
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3 comments:
Hi, long time reader, first time writer here. I was basically just writing to say that I've been reading your blog and have found it to be both very interesting and also informative, thanks! I'm a bit of a finance-blogger myself, and I've recently done a blog that I think you might be interested in. The post can be found at http://www.money.co.uk/article/1000810-theres-a-hole-in-my-bucket-dear-liza-a-hole.htm - hope you like it, and let me know what you think!
Matt.
(matt@money.co.uk)
this is really a dangerous way to get rid of debt.
Hi,
My name is Lyda. I found your site and the selection of resources very interesting.
I have a few finance related websites that contains information on credit, mortgage, insurance, pay-day loans, real estate, debts and just about anything on Finance (you name it…), which would be much useful information for your readers. There’s are a fine set of articles that reveal all pros and cons of credit cards, give tips how to reduce credit card debt and establish good credit, and similarly the same for all the other financial topics.
If it agrees with your policy, I would like to place some links at your site. I would also like to give you back-links from my financial sites and blogs.
Please let me know if you are interested so that we may proceed with the deal.
Thank you for your time,
Regards,
Lyda.
lydashmidth25@gmail.com
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