Homeowners in the Burton Trader area are being warned to resist the lure of companies who offer to buy their homes quickly for cash then let them stay in it as a tenant.
The warning comes after some local people found themselves homeless - despite the promises of security that attracted them to the deal in the first place.
East Staffordshire Citizens' Advice Bureau, which issued the warning, says the Government "needs to look at" what it says is a "completely unregulated sector".
Dawn Trigg, the organisation's chief executive, told the Trader that it was a "growing problem".
The companies primarily target people threatened with repossession - and offer what appears to be an "instant solution" to their problems, says the bureau.
And, unfortunately, some local people who have snapped up such offers have lived to regret it later.
Dawn Trigg said: "We are seeing more and more cases of people who are in mortgage arrears and are facing the threat of repossession being approached by companies that offer to buy their home quickly at a discountand then rent the house back on an assured short-hold tenancy.
"Many people are tempted by such offers because they want to stay in their home at all costs and this looks like the only way of doing it. But we would urge people to think very carefully before going down this route and make sure they have explored all the other options for dealing with their mortgage debt and staying in their home".
She explained that if people go ahead with a sale and rent back usually they will be required to sell their home at much less than its market value. She added: "They will have very little security of tenure as a tenant, so there is not even the guarantee that they will be able to remain in their home in the longer term. They also risk falling foul of benefit rules that make it difficult to claim means-tested benefits, including housing benefit, in these circumstances.
"We would strongly urge anyone with mortgage arrears that are building up, to seek free independent debt advice from the CAB as quickly as possible."
*Anybody needing money advice should call 01283 527990 or email advice@eaststaffordshirecab.co.uk. |
