Lease to Purchase Program

FRESH START Lease To Purchase™

For consumers who want to live in the home of their choice while they rebuild their credit, FRESH START™ Lease To Purchase™ (LTP) removes the largest roadblock to regaining their dream home! FRESH START™ created LTP™  for would be home buyers who have at least 8% to put down as a deposit on a home but who do not currently qualify for a traditional home mortgage.

LTP™ is an innovative Lease to Own program that allows you to get into the home of your choice today while you work to qualify for a traditional home loan in the future. Don’t just rent! Lease to Own and start on the path to homeownership today!  CALL me direct at (925) 357-1028 to apply.

Your Dream Home 1-­‐Day After Short Sale, Foreclosure or Bankruptcy Our FRESH START Investor will purchase the home of your choice and lease it to you for up to 6 years. Option To Purchase anytime during the 6-­‐year  lease. After minimal annual appreciated target, you keep all  accrued  equity  that  has  been  built-­‐up.   Your  monthly  lease payment  will  be  comparable  to  rentals  in  like  neighborhoods  of similar value.

Fresh Start LTP (Lease to Purchase) Program is Not A Loan,  It’s a Purchase Program. 

•    Sale Prices Up To $2M

•    550+ Credit Score

•    8% Down

•    1 Day After Short Sale, Foreclosure or Bankruptcy

•    Ongoing Short Sale or Bankruptcy OK

•    The Home of your dreams, in the neighborhood of your dreams, today!

•    Available in AZ, CA, CO, FL, GA, IL, MI, NV, OH, OR, PN, TX, VA, WA, WI

Short Sell Lease and Buy Back

POSTED BY  ON SEP 11, 2012 IN SHORT SELL LEASE AND BUY BACK | 0 COMMENTS

Home-Equity-Leaseback-Purchase

The FRESH START Housing Program  & Making Homes Affordable Home Affordable Foreclosure Alternatives (HAFA)  is a Short Sale Program that allows a homeowner to short sale their home and then rent it back for up to 3 years as well as repurchase without the negative equity.

The principle of FRESH START™ is to keep American Homeowners who have experienced real financial hardship in their homes. In order to do this we have had to develop a program that makes sense to the homeowner as well as the investor and is legally compliant with the many laws that have been enacted at both the State and Federal levels.

The program seeks to keep American homeowners that have suffered hardships in their homes long term with a clear path towards re-purchasing the property in the future.

Recent changes to the Making Home Affordable Program have made it possible for non-profit entities to purchase properties in a short sale transaction with the stated intent of keeping homeowners in their homes.

Why has this been a problem before?
Before now lenders have been largely punitive in their short sale practices by not allowing sellers to lease back their homes after the short sale was completed. With recent changes to HAFA, lenders now have the incentive to allow a short sale and lease back to eligible sellers.

How do I apply?
Contact me today at  (925) 357-1028, I am a FRESH START Certified Agent.

Fresh Start Housing Program

FRESH START Lease To Purchase™

For consumers who want to live in the home of their choice while they rebuild their credit, FRESH START™ Lease To Purchase™ (LTP) removes the largest roadblock to regaining their dream home! FRESH START™ created LTP™  for would be home buyers who have at least 8% to put down as a deposit on a home but who do not currently qualify for a traditional home mortgage.

LTP™ is an innovative Lease to Own program that allows you to get into the home of your choice today while you work to qualify for a traditional home loan in the future. Don’t just rent! Lease to Own and start on the path to homeownership today!  CALL me direct at (925) 357-1028 to apply.

Your Dream Home 1-­‐Day After Short Sale, Foreclosure or Bankruptcy Our FRESH START Investor will purchase the home of your choice and lease it to you for up to 6 years. Option To Purchase anytime during the 6-­‐year  lease. After minimal annual appreciated target, you keep all  accrued  equity  that  has  been  built-­‐up.   Your  monthly  lease payment  will  be  comparable  to  rentals  in  like  neighborhoods  of similar value.

Fresh Start LTP (Lease to Purchase) Program is Not A Loan,  It’s a Purchase Program. 

•    Sale Prices Up To $2M

•    550+ Credit Score

•    8% Down

•    1 Day After Short Sale, Foreclosure or Bankruptcy

•    Ongoing Short Sale or Bankruptcy OK

•    The Home of your dreams, in the neighborhood of your dreams, today!

•    Available in AZ, CA, CO, FL, GA, IL, MI, NV, OH, OR, PN, TX, VA, WA, WI

What is FRESH START™?

The FRESH START™ Housing Program (FSHP™) was formed to keep the dream of homeownership alive. Fresh Start has multiple programs with Certified Brokers and Agents to help accomplish this mission. Homeowners that have experienced financial hardships causing negative credit issues that want the ability to move into the home of their choice may be able to utilize the Fresh Start (LTP) Lease to Purchase Program .  With lending restrictions tightening and nearly half of home sales going to cash buyers this program has been a welcomed solution to many people throughout the nation.

We hope this provides a brief explanation of what we are trying to accomplish; for further detail it is recommended that you contact one of our FRESH START™ Housing Program Certified Listing Agents for more information.

Who Qualifies For FRESH START™?

Happy Fresh Start Housing FamilyKeep in mind that in order to qualify for FRESH START™ there are some very important guidelines, which must be followed. By meeting these guidelines, there is no assurance that you are gauranteed participation in the housing program as your lender mortgage company, mortgage servicer and or investor must approve your participation under the MHA HAFA guidelines as it pertains to the non-profit guidelines.

Below is a brief list of the primary underwriting guidelines.

 

  • Homeowner must have verifiable income; all income will be verified to guidelines.
  • Homeowner may or may not be current on mortgage payments.
  •  Temporary income such as Unemployment, Short Term Disability, etc. will not be allowed.
  • The homeowner’s income must have a Front End Debt Ratio of no greater than 31%. This is the homeowner’s gross household income versus the new rental payment.
  • Primary Residences only, no rental or income producing properties allowed.
  •  1-4 unit properties are permitted; however the owner must reside in at least one of the units.
  • Property must be in Marketable Condition.
  • Marketable condition is defined, as there are no deferred maintenance issues such as leaking roofs, missing siding, etc. There are also no functional obsolesce of the subject property such a missing or non-working A/C Units, missing water heaters, sinks, tubs, toilets, counter tops, etc.
  • The client-homeowners property must be valued at least 20% less than what is owed on the 1st mortgage. In example someone who has a home valued at $100,000.00 must have a mortgage owing on the 1st mortgage of at least $120,000.00.
  • FRESH START™ does not provide services for stopping or delaying Foreclosures or Trustee sales; should the client be in such a position the client-homeowner shall seek the services of someone skilled and licensed in these areas.
  • Bankruptcies: Homeowner may not be in active bankruptcy of any type at application or during the lease period.
  • Under no circumstance should anyone encourage a homeowner to skip or miss payments to their mortgage(s). If a homeowner is capable of making their mortgage payment(s) they should do so.

The Short Sale Solution

By Suzanne Rocha- Broker: Realty World Cal Home

Many homeowners are still dealing with properties that are underwater! Simply this means that a property owner owes more to the bank/Lender than the value of the property. After years of a challenging real estate market and still in 2014, 1 out of 3 properties are still underwater.  More and more homeowners have educated themselves on the Short Sale Solution. Many homeowners who have been disillusioned by the loan modification process have ended up pursuing a Short Sale to preserve their financial future and regain a life without the stress of challenging mortgage payments. A Short Sale can be a win-win situation. The Short Sale allows homeowners to get relief from the burdensome property while looking forward to becoming homeowners again with great affordable property.

The Short Sale Option Q&A

So what exactly is a “Short Sale”?

A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the loan.

The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees. You get your home sold, the loan(s) are paid off, you avoid foreclosure and you minimize the damage to your credit.

Are Banks still conducting Short Sales?

Absolutely! Mortgage lenders are still willing to work with borrowers faced with a hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will no longer be able to meet the obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking back the property through a foreclosure.  Remember, that not all hardships are financially based.

Many homeowners have qualified for relocation incentives to assist in helping them relocate.  In this market we are seeing anywhere from $3,000-$5,000 in relocation incentives.  In fact, many of our clients have been able to receive some of these incentives. As our client, we will look into any and all incentives that you may qualify for and approved by your Bank.  Qualification is strictly approved by your Mortgage Lender and not guaranteed.

As you consider the option of a Short Sale, remember that in most instances, your bank would rather approve a Short Sale than repossess a property where they usually pay more in real estate fees and expenses to sell.

If I do a Short Sale, how much will I have to pay to sell my home?

The great news is… Nothing. It’s true, in most cases; it will cost you nothing if your lender approves the Short Sale. All commissions, title/escrow fees, and even unpaid property taxes may be paid by the lender as part of the Short Sale approval. Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through a foreclosure. As you can imagine, it takes superior skill and expertise to work with banks to approve a Short Sale. The high volume of short sales that we have been able to get approved over the years certainly makes us experts! One of the advantages of this solution is that our services are paid by your Bank in the approved short pay off, not you!

Can I simply deed my property to someone else and avoid the hassle?

Deeding your property to someone without paying off the loan yourself is almost always a bad idea. In the first place, many lenders still consider you primarily responsible for the payment and loan balance. If loan payments do not get paid, or if the lender ultimately forecloses, this will show negatively on your credit report.

Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property and consequences you may be faced with. Do not deed your property to someone else without paying off the loan, unless you have consulted with an attorney.

How do I get started on a Short Sale?

It’s very easy. First and foremost, as California Market Specialist we review all your options with you. Again, at no charge to you, we are able to identify your circumstances and hardship which will pre-qualify you for the Short Sale process. Ultimately, it is your Lending Institution which grants the final approval. The best way to get you started is through an initial telephone conversation to review your situation. Again, its simple and at no cost to you.

What kind of hardship would the bank consider in order to approve a Short Sale?

It’s important to remember that each homeowner’s situation is different. Don’t try to determine if your eligibility for a Short Sale without speaking to us first. Our team of experts can review your situation to determine if you are a candidate.

Examples of hardships include, but not limited to the following:

  • Loss of Income including: underemployment, unemployment or decreased business income
  • Unexpected increase of expenses and debt
  • Significant illness, injury or death
  • Illness or injury in the extended family – particularly if it forces relocation and increase of expenses
  • Job relocation
  • Divorce or split of domestic partners
  • Adjustment in mortgage payment and/or unforeseen increase in living expenses
  • Inability to maintain renters

I am current on my mortgage; will my lender consider a Short Sale?

The answer is, maybe. Some lenders will accept and review a Short Sale request for approval on loans that are not delinquent dependent on the homeowner’s circumstances. Many lenders have declined Short Sales based on a lack of valid financial hardship with homeowners who remain current. This is something that should be reviewed and discussed in the initial stages of the Short Sale process. Again, each situation is different.

Do lenders Approve all Short Sales?

In a word…no. It is critical to work with experts like ourselves who have the demonstrated experience in getting Short Sales approved. Unfortunately, the less experience professionals can make costly mistakes in processing your Short Sale with your lender. Expertise is key in this area!

Are laws in place to help homeowners who conduct a Short Sale?

Yes there are! Californians have been able to take advantage of several laws that have been critical to their short sale solution.  First, there are two laws in place that affect the Mortgage Lender’s ability to claim money later after the short sale has been approved.  In a nutshell, if your Mortgage Lender approves a short sale and the sale closes, they cannot go after the homeowner with a deficiency judgment later. These anti-deficiency laws pertain to 1st and 2nd Mortgages and regardless if they were purchase money loans or refinanced loans.

In 2014,  the IRS and the Franchise Tax Board are still assisting homeowners who conduct short sales of their primary residences with tax forgiveness.  Currently, the Tax Forgiveness for Primary Homeowners who conduct a Short Sale are based upon California being an a non-recourse state in recent news.  Senator Barbara Boxer worker hard for Californians to get the IRS to issue this ruling.  This is extremely important for those homeowners needing to conduct a short sale this year.  This will assist so many  homeowners with any potential tax consequences arising out of the 1099 C (Cancellation of Debt) that is issued by their Mortgage Lender after the successful completion of their short sale.  As far as taxes are concerned, consultation with a qualified CPA or Tax Accountant is always advised especially when a rental property is to be short sold.  It is also advised to consult with a professional who has experience with homeowners who have conducted short sales and who are also up to date on current laws.  Everyone has their own unique financial situation and seeking a professional’s tax advise is highly recommended.

Getting a Short Sale Approved

Working with lenders to get Short Sales approved is what we do every day. We know the importance of getting started on the right foot with the lender’s Short Sale department. Being able to communicate on the Short Sale level is critical. Working day in and day out with the Bank’s Negotiators to get thousands of Short Sales approved is what we do best!

Who can Win in a Short Sale?

It’s never easy to feel the stress of dealing with a property that you can no longer afford or maintain. Homeowners often describe it as being embarrassed, ashamed or emotionally depleting. It’s important to remember that it is only embarrassing if you don’t do something about your property…if you continue to allow your Mortgage payment to control your life. No one person can be blamed for the fall of the economy and Real Estate market. Homeowners can only feel relief by taking the control back and doing the right thing by not just walking away. Yes a Short Sale can we a win win situation.
It is NOT often in real estate transactions that virtually all parties with a financial interest can be winners in the same transaction. A successful Short Sale is one of those rare situations where everyone can win.

  • The Buyer Wins by acquiring a property at a great market price. While some Short Sales will be bigger bargains than others, nearly all Short Sales will represent a good deal for the buyer.
  • The Seller Wins by avoiding foreclosure and all the credit damage that goes along with it. The property gets sold, all the loans get paid off and the existing lender pays all the sales costs. Most homeowners feel like a big ball of stress has been lifted from their shoulders. Homeowners can regain financial freedom and recover in a short amount of time.
  • The Mortgage Holder Wins by reducing the loss they absorb to get the delinquent loan off their books. Mortgage companies know about the accelerated costs associated with acquiring a property through foreclosure. To resell the property the mortgage company frequently needs to invest money for clean-up/repairs, staff to manage and maintain the property as well.

The Foreclosure Option…No!

At any rate, a foreclosure should be avoided. Again, this is quite damaging to your credit, to the surrounding homes in your community, and to the economy. As California Market Specialists, we do all we can to help you avoid a foreclosure. Many people have learned the hard way that just “walking away” isn’t the best decision. Remember, we are a phone call away to help you review all your options.

Who You Use is an Extremely Important Part of a Successful Outcome

The biggest mistake homeowners make is not making the best decision on who to use to conduct your Short Sale. Getting a Short Sale approved is complicated and requires skills, knowledge and expertise. We have been able to get thousands of Short Sales approved over the years. It’s not a transaction we do part time or here and there, but offer a full time staff dedicated to the approval process. As Short Sale Specialists, we pride ourselves in the staff we call the Cal Home Team. Many members of our Short Sale Team have actually worked for major banks and can offer key insight. In addition, our Team has been through intense training and certification programs. The large volume of Short Sales that we get “bank approved” speaks for itself. This type of experience is invaluable to our clients. We have been able to accomplish Short Sales for homeowners of condos to multi-million dollar estates as well as with primary and secondary properties. No matter what your situation is, you need an expert on your side. The Cal Home Team is the right team of experts!

Short Sale Information

Home Affordable Foreclosure Alternatives (HAFA) Program

If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure AlternativesSM (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

In either case, HAFA offers benefits that make the transition as favorable as possible:

  • You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
  • Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
  • In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
  • HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
  • When you close, HAFA may provide $3,000 in relocation assistance
Are You Thinking of Selling Your Home

  • Leave your contact information on my Property Search Page and fill up the Request for Information Sheet and ask for a free comparative market analysis on the comment . We do all the marketing and advertising at no cost to you.  We will schedule and hold open houses, place for sale sign in the yard, a lock box at your property so other Realtor can show your home to their potential buyers, and all the Internet exposure possible. We present you offers as they come. Upon accepting offer from a qualified buyer we will coordinate the escrow process for you from beginning through the close of escrow is reached. We don’t get any compensation unless we sell your property for you.

View Video on the left link as seen on KRON4 News as our Broker Suzanne Rocha Discusses Short Sale.

Foreclosure Alternative

Home Affordable Foreclosure Alternatives (HAFA) Program

If you can’t afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage:

  • Short Sale.  In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe.
  •   Deed-in-Lieu (DIL) of foreclosure.  In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

In either case, HAFA offers benefits that make the transition as favorable as possible: You can get free advice from HUD-approved housing counselors and licensed real estate professionals. Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.

In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price. HAFA has a less negative effect on your credit score than foreclosure or conventional short sales. When you close, HAFA may provide $3,000 in relocation assistance.

Are You Thinking of Selling Your Home

Leave your contact information on my Property Search Page and fill up the Request for Information Sheet and ask for a free comparative market analysis on the comment . We do all the marketing and advertising at no cost to you.  We will schedule and hold open houses, place for sale sign in the yard, a lock box at your property so other Realtor can show your home to their potential buyers, and all the Internet exposure possible. We present you offers as they come. Upon accepting offer from a qualified buyer we will coordinate the escrow process for you from beginning through the close of escrow is reached. We don’t get any compensation unless we sell your property for you.

Welcome

Welcome to my website.

Whether you’re a first time buyer or an experienced investor, you’ll find useful information about how to choose the “right” property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed home buying decision in today’s market. If you currently own property and are thinking about selling it, this site contains information about preparing your home for sale, selecting the right agent, pricing your home appropriately, marketing it effectively, going through the inspection process, and receiving a timely market evaluation.

Please use my website as a continued resource and if you need more information on anything, please feel free to call or email me. My contact information is listed on the Agent Contact Info and Bio page.

Thanks for visiting!