HomeRock has launched a unique home purchasing and rent-back campaign in the Central Texas area.The program involves helping the community by creating a buy/rent back program for homeowners who have fallen behind on their payments or are on the verge of foreclosure. HomeRock buys the home from its current owner(s), rents it back to them (enabling them to remain in the home) and then allow them to re-purchase the home in the future.
“Our goal is to purchase a qualifying home at a slight discount to the current market value, then the previous owner will enter into a rental agreement as a tenant,” said HomeRock manager Aaron Amuchastegui. “The rental rate is determined by market rent for the neighborhood, and sometimes it may be higher or lower than their original mortgage payment. But as a tenant, they are no longer responsible for bills like property taxes, and home maintenance expenses like roof replacements or major plumbing repairs like replacing a hot water heater.”
For the past seven years, HomeRock has been buying distressed real estate, fixing up the homes and re-selling them on the open market. The company made the homes like new again, but provided a discount compared to brand new homes. “This strategy was very successful, but as prices have increased dramatically in many areas, we have found many homeowners with equity in their homes but, for whatever reason, are just a little behind in payments,” Amuchastegui said. “We wanted to create a new program that could help them re-position their finances, get them back on their feet, and allow them to re-purchase the home in the future.”
Amuchastegui says HomeRock’s campaign was inspired by a trend that started a few years ago, when many large investment funds started focusing on buying homes and pooling them together as rentals instead of just a standard buy-and-sell opportunity. Some of them even started the idea of buy/rent back funds.
“We are very excited about being able to offer this buy and rent back service to the communities in Central Texas,” Amuchastegui said. “This plan goes beyond simply buying, fixing and selling properties. This is about providing a much-needed service that helps families and communities. It’s a service that can save people from foreclosure and losing their homes forever.”
This buy/rent back service doesn’t only help the current occupants of the home – it helps the community and neighborhood as well. “This service can improve a neighborhood’s stability and home values, and prevent an increase in crime that can occur when there are additional vacancies. It’s a win-win for everyone,” Amuchastegui said.
The tenant can decide if they want to stay a renter for the foreseeable future, or if they only want to rent temporarily. “If they do decide to re-purchase the home in the future, we plan to follow the same methods of determining a slight discount to the current market value at the time, assuming the home prices have stayed the same, or even increased,” Amuchastegui said.