Short Sale Leaseback Program Helps Home Owners Avoid Foreclosure

Short Sale Leaseback Program Still Offers Help For Some Homeowners

While some neighborhoods have stabilized, with communities recovered or almost recovered from the economic downturn, other neighborhoods continue to see homes foreclosed by the banks, many sitting empty for months as the banks attempt to move the “toxic” property off their books.

The families displaced during this process have little recourse but to move away from their established community; kids often have to find new schools, parents often need to find new jobs, both of which only add to an already stressful home life.

For those homeowners facing foreclosure there are alternatives to losing their homes or selling short.

The short sale leaseback program is one such option. It allows homeowners to get out from under their mortgage debt without forcing them to give up their home.

Homeowners facing foreclosure must meet eligibility requirements and work with an approved participating nonprofit to participate in the short sale leaseback program. They must also be willing to sign a one year minimum lease (with a 2 year option for renewal.)

If approved for the program the homeowner will be allowed to participate in the program, without ever actually putting a “for sale” sign in their yard. The home will be purchased direct by an HUD-approved nonprofit organization. The homeowner can remain in the home, leasing it for market value. Any forgiven debt associated with the sale will be treated like a conventional short sale, leaving the homeowner free to immediately begin rebuilding their credit.

Approved homeowners will also be required to attend financial management seminars to help learn better ways to budget and manage their money, and will receive continued one-on-one counseling their HUD-approved nonprofit organization partner.

Foreclosure is not a happy situation for anyone to face, but fortunately there are still options to help families avoid much of the upheaval and discourse which often comes with it.