Sale Leaseback
In this arrangement, an older homeowner sells his/her home (often to one of his/her children) but continues to live in the home through a life-lease clause in the buyer's deed. Financing arrangements include a lump sum 'down payment' to the seller (older homeowner), mortgage payments to the seller, and rental payments to the buyer (the children). Rental charges are less than the mortgage payments, leaving the older seller with additional monthly income. The buyer (the children) is responsible for taxes, repairs, insurance, etc., but the buyer also benefits from any increase in the value of the property over time. This is a complex financial arrangement among private individuals.
For information about this strategy, as well as legal assistance in order to avoid victimization, contact an attorney knowledgeable in real estate law.
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