What Do You Think About The Short Sale Lease Back Program?

Hi guys,

Wondering what your thoughts were on the short sale lease back program that is starting gain traction in the short sale arena.

Short sale lease back programs have been around for quite some time now. In an SSLB program, the homeowner short sells their home and subsequently rents from the new owner upon closing the sale.

Do you think this is a good idea for the homeowner? What have you seen? Any other thoughts?

Thanks!

Peter

Full Article: www.seattleshortsaleblog.com

Views: 2837

▶ Reply to This

Replies to This Discussion

Permalink Reply by Judi Fiolle on February 10, 2013 at 3:17pm

I just looked it up Michele and you can go to ShortSaleCon.com to find the info

Permalink Reply by Michele Peterson on February 10, 2013 at 3:28pm

Thanks Judi!

Permalink Reply by Judi Fiolle on February 10, 2013 at 5:30pm

you are welcome

Permalink Reply by Simon Campbell on February 16, 2013 at 2:58am

Watch the sales documents. Most transactions require that it be an "arms-length" transaction.  You will see wording like this in the statements: "The Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at any time after the execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission."

Any lease back to the original owner when this terminology is part of the purchase would be subject to fines and penalties, if not court action.  The number of qualified lease back situations are going to be far and few between and it would be a disservice to hold that carrot out to a property owner.

Permalink Reply by Jeffrey Burnham on February 16, 2013 at 6:45am

So I keep hearing that this is possible with non-profits....is it possible for a non-profit to over-ride this clause? Do you know?  Does ANYONE know?

Permalink Reply by David Zagorsky on February 16, 2013 at 8:05am

We need to put on our Super Star cloaks - Super Men / Women that we are. :) - and develop an incentive to the decision maker to want to make this deal.

Whether it is involving $ from the Neighborhood Stabilization Act or some other Fed. program or a "be a good guy and help" pitch, let's think creatively to get this concept moving.

With the proper structure SS Lease Back can be a Win for all parties.

Permalink Reply by Mega-Pros on February 16, 2013 at 11:06am

Nice 'big picture' thinking, David!  Totally agreed.

Permalink Reply by Judi Fiolle on February 16, 2013 at 12:01pm

Good idea David. It can be a big win-win for everyone involved in this. The homeowner gets to stay in their home, the bank gets money and the home is never left vacant, the non-profit gets a guaranteed buyer within 3 years and rent in the meantime. There is really no downside to this sort of transaction. It does eliminate those stupid modifications and just think how happy everyone will be to get all of that inventory off of their books....I am looking forward to getting all of the information and getting certified to do these in March....an agent/broker does have to be certified in order to do these though and as far as I know, only 1 has been completed so far.....

Permalink Reply by David Zagorsky on February 16, 2013 at 3:14pm

As far as I know there is no "official" certification. There will be plenty of gurus jumping on the bandwagon as the concept becomes more accepted.

Then there will be certifications!

Permalink Reply by Judi Fiolle on February 16, 2013 at 3:49pm

This explains the program. I will post the certification requirements for a broker in order to do this also.

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.

Permalink Reply by Judi Fiolle on February 16, 2013 at 4:01pm
This is the certification that you need to perform short sale buy backs with HAFA. They have expanded this to include the buy back program as I understand it.
Certified HAFA Specialist (CHS)
  

Permalink Reply by ElizabethWeintraub00697006LyonRE on February 18, 2013 at 10:23am

So, what you are saying is any real estate agent such as myself with a CHS designation (certified HAFA specialist) is certified to do short sale buy backs?

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************