How You Can Short Sell and Never Leave Your Home
If you’ve been contemplating short selling your home, there are likely several pressing questions weighing on your mind: Where will we go? What will happen to our credit? What fees will we incur? How long will it take? It can be overwhelming just anticipating what lies ahead.
Beyond just dollars and cents, though, what is the true cost of short selling a home? For most homeowners, the true impact of a short sale won’t simply be financial. For most of us, our homes operate much like the center of a wheel. All the spokes that come off that wheel – what schools our children attend, our relationship with our neighbors, our civic affiliations, etc. – are directly affected if we have to move. For this reason and many others, many homeowners are desperate to find a way to stay in their homes, even when the odds seem stacked against them.
Fortunately, there is some good news for homeowners who are facing this difficult situation. A new program, called the NeighborStay Short Sale Leaseback Program, allows homeowners to short sell without ever having to leave their home. How is this possible? Note this paragraph from the HAFA (Home Affordable Foreclosure Alternatives) guidelines:
“Section 7.3 of Chapter IV of the Home Affordable Alternatives Program (HAFA) Handbook requires that a short sale be an arm’s length transaction. In March 2011 this provision was amended to allow servicers (banks) 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.”
How Does It Work?
How does the NeighborStay program help short sellers stay in their home? NeighborStay CEO Don Harris explains: “Under the HAFA Program, the general prohibition that a short sale seller cannot lease the home that they have sold does not apply if the property is acquired by a nonprofit organization with the stated purpose to sell or lease the property to the borrower.” The Leaseback program works by teaming private investors with community-based non-profit organizations who then work together to acquire short sale properties and lease them back to qualified short sale sellers. Qualified tenants will be given the opportunity to repurchase their homes.
What about buyers who are underwater on their mortgages? As of November 2012 the FHFA (Federal Housing Finance Agency) introduced a new short sale program that allows borrowers who have not strategically defaulted or fallen seriously behind on their mortgages to qualify to short sell their homes, even if they are underwater. The NeighborStay program is able to help homeowners regardless of their credit or financial position.
So…do you want to stay in your home? Now is the time to see if the NeighborStay Short Sale Leaseback Program will work for you!
For more information about NeighborStay, please visit their official site: http://neighborstay.com/