The Short Sale Lease Back (SSLB) program is a new program that allows qualified homeowners to short sale their home and remain as tenants. Homeowners facing a foreclosure may now be able to stay in their home after a short sale and also potentially buy the same home back at market price. Homeowners can effectively reduce their mortgage balance, monthly payment, and rebuild their credit with this program….and all without having to move.
Short Sale Leaseback Program Highlights
Homeowners MUST work with an approved participating nonprofit to determine eligibility.
12 month minimum lease term available with an optional 2 year extension if necessary.
Includes mandatory financial management seminars and continued one-on-one counseling provided and other local HUD-approved nonprofit organizations.
Families will rebuild credit history. Monthly lease payments are reported to participating credit bureaus.
No need to put up a “for sale” sign, the property is bought directly.
Any forgiven debt associated with the sale is treated like a conventional short sale.
Monthly housing payments will be based on market rental rates
Short Sale Leaseback vs. Conventional Short Sale
The process is similar to a conventional short sale in that debt is forgiven and a toxic mortgage can be abandoned. However, unlike a conventional short sale, a short sale leaseback gives the homeowner the the ability to stay in the home and lease the unit from an approved non profit. This lets families stay in the homes and communities that they have grown to be a part of and give them a chance to rebuilt without relocating. For many homeowners, the short sale lease back is an ideal solution, allowing families to stay in their home, kids to remain in school, and lives to continue without interruption. But this solution may not be for everyone. Take a look at some additional options homeowners have to either avoid foreclosure, get out of a toxic mortgage, or out from a loan that is underwater.
The information contained herein is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, We highly recommend to seek the advice of an attorney and not rely on this information to make final decisions. We are a HUD approved nonprofit housing counseling agency, therefore, we are not qualified to provide legal and/or tax advice. We are not licensed as a lawyer nor a CPA and cannot advise concerning IRS consequences. While HomeStrong USA strives to keep the information on the web site accurate, complete, and up-to-date, HomeStrong USA cannot guarantee, and will not be responsible for any damage or loss related to, the accuracy, completeness, or timeliness of the information provided. Opinions expressed herein are solely those of the contributors or authors and do not represent an endorsement or corporate position of HomeStrong USA unless otherwise noted.