FAQ  |  Search  |  Memberlist  |  Usergroups   |  Register  |  Profile  |  Log in to check your private messages  |  Log in 

 Sell Your Home and Stay In Home View next topic
View previous topic



Post new topicReply to topic
Author Message
JorgeN
Dud?


Joined: 16 Apr 2010
Posts: 4

Sell Your Home and Stay In Home
PostPosted: Sat Apr 17, 2010 4:58 am Reply with quoteBack to top

As most of you know, with a short sale, the lender forgives a portion of the mortgage amount in order to get a property sold to a new buyer. This is far less costly than foreclosing, fixing up and reselling the property. While lenders don't like to write down loans, economics dictate that it may be a better approach for many properties.

The sad thing is that many of the sellers would stay in the homes if they could be the recipient of the loan reduction. For whatever reason, lenders seem to be more amenable to a short sale than a mortgage reduction with the existing owner.

A company called American Homeowner Preservation has come up with a way to help short sellers keep their properties. Here's financial blogger Felix Salmon's description of the program:

The details can be found here: the core of the scheme is where AHP persuades a lender to accept a short sale on a home. That’s the principal-reduction bit; the right-to-rent bit then kicks in when the buyer of the home — an AHP client, along with the seller — agrees to rent back the home to the former owner at a low, affordable rate which can’t be more than one-third of the tenant’s income. Rent increases by 5% annually for five years; at any point, the tenant has the option to buy back the home at a predetermined price which rises year by year; tenants get financial counseling to enable them to do that.

Read full blog post at:
http://blog.mantecagov.com/201.....-home.html
View user's profileSend private messageSend e-mailVisit poster's website
Display posts from previous:      
Post new topicReply to topic


 Jump to:   


Merge topics 

View next topic
View previous topic
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum




Powered by phpBB 2.0.22-2 (Debian) © 2001, 2002 phpBB Group :: FI Theme :: All times are GMT