Excerpt from the Making Home Affordable program 2011 Amendment:
“This Supplemental Directive amends this restriction (requiring arm’s length transactions) 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.”
A short sale leaseback program (SSLB) allows homeowners to remain in their house after a short sale. They’re allowed to rent it from the new owner rather than vacating after closing. A 2011 Amendment to the Making Home Affordable program helped to create this leaseback option. You sell your home to a non-profit and they lease it back to you for a set period of time. Once your credit has improved and you’re approved for a new loan, you can buy back your home.
A few things to think about in regards to this option:
  • Get legal advice first
  • Does my bank participate in this program?
  • Verify that the organization involved is a non-profit.
  • How is the non-profit organization benefitting from this?
  • Are you protected against price gouging when buying back your home?
  • Always do your own research - You don’t want to be upside down on your mortgage again!