Are Sale-Leasebacks a Good Idea? Some May Never Be Homeowners Again - WSJ
Finance Housing VideoSummary
The Real Estate Industry has seen the concept of a home sale-leaseback take off during the COVID-19 pandemic. A home sale-leaseback is when the homeowner sells their home and then rents the home back from the buyer. The buyer in this case is usually a real estate company. Many have found that selling their home to such an organization has alleviated financial troubles related to the pandemic. After all, mortgage delinquencies have quintupled in the US since the beginning of the pandemic, leaving many homeowners in a desperate state. However, the benefits of sales leasebacks in the short term might outweigh the instability caused in the long term. Sale-leasebacks often include a clause that the home can be rebought after a couple years, but many struggles to ever regain the funds to repurchase the home. To learn more about home sale-leasebacks see the video below.