Riverside, CA, January 22, 2013 --(PR.com
)-- Brian Bean and Tim Hardin of The Dream Big Real Estate Team in Riverside, California, this week announced that the first major lender has recognized the Short Sale Lease Back Program and will allow some qualified homeowners to stay in their home after a short sale.
Bean and Hardin -- Certified Default Advocates who are among the most skilled and experienced short sale agents in the Inland Empire -- revealed that the lender will approve short sale lease-back transactions on certain loans owned by the lender, as long as the homeowner has a valid hardship and the short sale terms are acceptable to the bank.
“This program is the win-win solution that has been missing for too long,” said Bean, a Riverside, California, real estate broker and one of the program founders. “For some, the biggest fear is having to move. What if they didn’t have to move? It would prompt more people to raise their hand and ask for help, before the bank takes their house.”
More than 200 California real estate agents from around the state completed the required Short Sale Lease Back training courses and can offer the innovative program to distressed homeowners looking for an alternative to California foreclosure.
The pilot program, which has completed two short sale lease-back transactions and has many more marching toward completion, is monumental and game-changing, providing a more attractive solution for homeowners who cannot afford their homes but have valid economic hardships and steady incomes to afford a lease payment.
A short sale occurs when a property is sold for less than is owed on it and servicers such as Bank of America, Wells Fargo, Chase and Citi Mortgage agree to discount the mortgage payoff. In recent years, banks and servicers have 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.
In 2011, changes to the federal Home Affordable Foreclosure Alternatives short sale program opened the door for a short sale without the arm’s-length requirement. The U.S. Treasury Department in March 2011 issued a supplement to its HAFA guidelines 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.”
Treasury further strengthened that option with a November 2012 supplement that smoothed the process for banks.
The Short Sale Lease-Back Program was inspired by the Treasury's actions, to allow a qualified homeowner to short sell their property without having to move.
Here is an overview of the Short Sale Lease-Back Program
• Homeowners must work with a licensed agent trained and certified by the Short Sale Lease Back Program.
• A qualified non-profit would purchase the home in a short sale.
• The homeowner’s lenders must approve of the lease-back terms.
• The seller would lease the home for three years, allowing their credit to heal so that they could qualify for a mortgage.
• Homeowners must attend ongoing HUD and financial-literacy counseling.
• If approved, the former owner might be allowed to repurchase the home at the end of the lease term.
Not all homeowners qualify for the program. Borrowers must have sufficient income to afford the monthly rent payments.
Homeowners who don’t qualify for this program can still proceed with a traditional short sale, which may include a relocation incentive from $2,500 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 report, hinder their ability to find a home to rent and perhaps even impact their jobs.
Do You Qualify?
The Short Sale Lease-Back Program is now interviewing California applicants for qualification in this new program. To qualify, homeowners must:
• Live in the property as their primary residence.
• Have steady, verifiable income.
• Have a valid hardship and be able to qualify for, and complete, a HAFA short sale.
To schedule a consultation, see details at http://www.DreamBigRealEstate.com/short-sale-lease-back/, email firstname.lastname@example.org or call 951-778-9700.
About The Dream Big Team:
The Dream Big Team of Riverside, California, is a group of Real Estate Professionals and Default Advocates committed to helping distressed consumers climb out from under the crippling mortgage balances that have slammed California home values and the world economy. Brian Bean, CEO, is a veteran Riverside, California, Listing Agent who knows how to market homes to obtain the highest possible price in the shortest period of time. Tim Hardin, COO, is an accomplished negotiator with unparalleled skills helping buyers find great homes at low prices. The Dream Big Team can be reached at 951-778-9700 or email@example.com.