HomeStrong USA’s Short Sale Lease Back (SSLB) program is a new program that allows qualified homeowners to short sale their home and remain as tenants. Yes, homeowners facing a foreclosure may now be able to stay in their home after a short sale. The SSLB program provides an alternative option for homeowners who can’t afford their mortgage payments AND have been rejected for a loan modification. Participating lenders must recognize that this transaction is not an “arms-length” transaction, meaning HomeStrong has prearrangement with the distressed homeowner to stay in the property.
- All homeowners must work with an approved participating nonprofit to determine eligibility.
- Home must be primary residence.
- HomeStrong USA will purchase the home and lease back to previous owner.
- Minimum 3 year lease. Optional 2 year extension if necessary.
- Includes mandatory financial management seminars and continued one-on-one counseling provided by HomeStrong USA and other local HUD-approved nonprofit organizations.
- Families will rebuild credit history. Monthly lease payments are reported to participating credit bureaus.
- The bank, servicer, and lien holder must all approve the non-arms-length short sale or the lease back cannot be completed.
Homeowner Eligibility Requirements
- Must be at least 31 days late on their mortgage and applied for loan modification
- Must work with HomeStrong USA or approved participating local HUD- approved nonprofit organization
- Must show verifiable income to prove they can afford the potential lease payments
- Must sign three-year lease to stay in home
- Must attend financial management seminars and individualized counseling sessions
- Must keep good credit habits during the term of the lease
If the homeowners do not qualify for the HomeStrong SSLB program, they can still proceed with a regular short sale