Short Sale – Lease Back Option

Short Sale Lease Back Program

SSLB logo JPGHomeowners facing a foreclosure may now be able to lease back and in some lender approved situations buy back their home after a short sale.  A newly launched program provides another option for homeowners who can’t afford their mortgage payments or have been rejected for a loan modification.

Until recently, the Homes Affordable Foreclosure Alternatives program required that a short sale be an “arm’s-length” transaction, meaning the buyer and seller could not be related and could not have a prior agreement for the homeowner to stay in the property.

A new supplement to the HAFA guidelines “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.”

For homeowners who qualify, the HAFA program now allows a homeowner to sell a home, rent it back for three years.


  1. –You must work with a real estate broker who has a relationship with a qualified non-profit organization. Not all non-profits are qualified or have the resources.
  2. –The non-profit will purchase the home.
  3. –The seller will then rent the home back for a minimum of three years, allowing their credit history and FICO scores to heal so that they can qualify for a mortgage.
  4. If everything goes as planned, the former owner can potentially repurchase the home, perhaps at a giant discount (Only with lender approval).

Not all homeowners qualify for the program. Borrowers must have sufficient income to afford the monthly rent payments in addition to their other debt payments. For those who do qualify, the impact could be similar to a slow-motion loan modification with a principal reduction to their loan amount.

Homeowners who don’t qualify for this program can still proceed with a traditional short sale, which may include a relocation incentive from $3,000 to as high as $45,000, depending on their lender, loan amount and individual situation.

Either option is better than a financially devastating foreclosure, which can crush a consumer’s credit, hinder their ability to find a home to rent and perhaps even impact their jobs.

Banks prefer short sales over foreclosure and even loan modifications because they net 12 percent to 20 percent more money from them.

A survey of homeowners last month showed that 83 percent of those who bought short sales were satisfied with their purchase, according to online real estate resource HomeGain. Short sale buyers were the most satisfied of any other sale type, the study indicated.

Advantages of the Lease Back Program

  • Allows Homeowner To Stay In Their Home

    One of the biggest advantages in our Lease back Buy Back program is it allows the homeowner to stay in their home . This is a tremendous advantage for families

  • Provides Afforable living

    Our Lease Back Buy Back program will stop the foreclosure process and also provides affordable living while you work to reestablish your credit to buy back your home.

IMPORTANT NOTICE: We are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

This entry was posted in Chase Short Sales, Citi Mortgage Short Sales, Credit Challenges, Foreclosure, HAFA Short Sales, HAFA Updates, Pre Foreclosure, Short Sale Lease back, Short Sales and tagged , , , , , , , , . Bookmark the permalink.

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