Repurchase, what gives?

The redemption is increasingly mentioned in connection with the restructuring of credit. Focus on the solution for homeowners stuck in the Banque de France or current input record.

The Buy-back is a legal and financial solution to sell their property by keeping the right of redemption of the property sold at a price fixed in advance. Also called "right of redemption," the redemption is a legal practice and governed by the old Civil Code. It is under the law as "a covenant whereby the seller reserves the right to take the thing sold, with the return of principal and redemption price" of costs and fair costs to sell. In other words, the sale to repurchase allows such an individual bank allowed to sell his property to pay all its debts. The contract of sale with a repurchase option differs from a conventional sale that the seller is occupying his property and he sees himself reserved the right of redemption to a fixed price within a specified period.

The sale and redemption redemption is the right solution for the needs of people in financial difficulties Registrant Bank of France, unable to restructure the banking conventional circuit. Following a job loss, a debt, life accident, illness or accident of a financial transaction that allows you to save the heritage of an auction more or less inevitable in the long term.

The Buy-back in practice
The property is sold at a price below market prices. The buyer has the option to redeem the property at a price agreed in advance. The former owner may continue to live in the house sold on payment of compensation for occupation. The sale is concluded before a notary who will settle with the creditors selling price. When the debts are cleared, the ban may be lifted bank. It is then possible to consider the establishment of a mortgage for the purchase of the house.

The advantages of the Buy-back
As seen, the mechanism of the Buy-back is less traumatic for the family as it is still occupying his house for the duration of the operation. The Buy-back allows you to save the heritage of an auction more or less inevitable in the long term. Knowing that the whole process is stopped at a notarial act performed when everything is agreed in advance, transparency is required on any legal or contractual duration of the operation.