HAFA Rent to Own Program West Sacramento Short Sale

West Sacramento Homeowners facing a foreclosure may now be able to lease back and eventually buy back their home after a short sale.

A newly launched program provides another option for West Sacramento 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 an West Sacramento shortsale 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 West Sacramento homeowners who qualify, the HAFA program now allows a homeowner to sell a home, rent it back for three years and then buy it back at a pre-determined price.

PROGRAM DETAILS

• 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.
• The non-profit will purchase the home.
• 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.
• Homeowners speak with a qualified HUD counselor, attorney and tax expert to ensure that the program is the right fit.
• If everything goes as planned, the former owner can repurchase the home, perhaps at a giant discount. 

Not all West Sacramento homeowners qualify for the program. West Sacramento Borrowers must have sufficient income to afford the monthly rent payments in addition to their other debt payments.

West Sacramento Homeowners who don’t qualify for this program can still proceed with a traditional West Sacramento 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 West Sacramento foreclosure, which can crush a consumer’s credit, hinder their ability to find a home to rent and perhaps even impact their jobs.