1) Can I stay and lease back my house from the new owner?
2) Can I short sale the property to myself or buy it back later after I do a short sale?
Until recently, many banks would not allow a seller to remain in a property as a renter after they completed a short sale and none would allow an agreement that would arrange up front for the seller to potentially buy back the home at the cheaper price.
Now, those two things are legally possible if the seller/borrower qualifies and their bank agrees!
Making Home Affordable Program – Administrative Clarifications Supplemental Directive 11-02 March 30, 2011 Page 8 states the following:
Supplemental Directive 11-02 March 30, 2011 Page 8 states the following:
Sales to Non-Profit Housing Organizations
Section 7.3 of Chapter IV of the Handbook requires that a short sale be an arm’s length
transaction. This Supplemental Directive amends this restriction to allow servicers the discretion to approve sales to non-profit organizations with the stated purpose that the property will be rented or resold to the borrower, so long as all other HAFA program requirements are met.
Servicers offering programs of this type must include program descriptions and conditions in their HAFA Policy. Servicers must retain in the servicing system and/or mortgage file the evidence provided during the HAFA evaluation demonstrating that the organization was a nonprofit organization.
Under these circumstances, servicers must remove certain of the applicable “arm’s length
transaction” requirements from the SSA, the Request for Approval of Short Sale and the
Alternative RASS. These forms will be updated to reference these changes and will be available on www.HMPadmin.com.
Not All Agents Are Certified to Assist Homeowners With This Process!
In order to provide the service to homeowners, agents have to be certified with one or more of the approved NonProfit organizations. I am one of the very few agents in the East Bay, Tri-Valley area who are certified with one or more of the approved NonProfit Organizations to offer this program to homeowners. Fresh Start is one of those programs.
Like with any program, not every homeowner will qualify, but if you would like more information about the HAFA Short Sale Lease back Program and to see if you may qualify, feel free to give me a call at 925-577-8692, send me a message through this site.
My goal is to always help homeowners know what all their options are in order to avoid foreclosure so they can make the best choice for their situation and family. I love helping people find a way to stay in their home when that is what they really want to do and I look forward to being able to help people do just that with this program!
