Homeowner, with the assistance of a FRESH START Certified Listing Agent applies for the FRESH START Housing Program. Homeowner completes the FRESH START Housing Program Underwriting Worksheet, Application, Authorization to Release Information Form, Drafts a Hardship Letter and signs 4506-T Form.

Homeowner applies to HAFA Program with assistance from FRESH START Certified Listing Agent.

Three estimated lease payments are placed into a savings account held by Homeowner. The payments are spread over a 90 day period, during the Short Sale negotiation period with the homeowners mortgage lender. By holding the saving in the homeowners own saving account, it demonstrates the Homeowners ability to pay the lease payment  and provides Homeowner with necessary funds to pay to the  first’s month lease and two months security deposit.

After acceptance into theFRESH START, an “all cash” offer is prepared. The home is listed by the Homeowner’s FRESH START Certified Listing Agent for a “Short Sale” and home uploaded into the MLS.

The Investor’s offer is submitted to the homeowner. Upon acceptance by the homeowner, the offer is submitted to the homeowners mortgage lender for approval.

Upon Homeowner and Lender Acceptance of the offer, an appraisal is ordered. A full interior and exterior appraisal is performed to insure the home is in marketable condition as represented.

Escrow is opened, verification of all terms of the purchase are completed and all paperwork is compliant with the states Department of Real Estate.

Closing Documents are prepared and executed.

Upon Close of Escrow, Client signs the lease, Client makes first lease payment and has a 3-year window to repurchase the home at or near current market value. Established repurchase value increases 3% annually.


9 thoughts on “How FRESH START Works

  1. John O

    This site was forwarded to me by a froend. I hope you guys know (but it looks like you don’t) that your program to buy a home and then sell it back to the same party for any noticeable amount over the original purchase price constitures USURY, particularly if you have little-or-no skin in the game. I know it sounds crazy, but any realestate lawyer should be able to explain why the courts see it as they do (and they do see it that way). And a “straw man” as intermediary may bring up potential fraud issues. You need to re-think this one (AFTER talking to the aforementioned real estate lawyer). Hope this info keeps you out of jail.

    p.s. anyone who wants can reply to me directly (at, since I won’t be checking in for replies.

    1. oslik59

      Hello John,

      I do appreciate your concern and comments,and no,what you’re saying doesn’t sound crazy at all. However, fortunately you are wrong, to learn more about this Non-Profit Initiative HAFA Supplemental Directive Program, please open the attachment provided above (MHA HAFA Handbook Guideline, pg 160, Chapter IV, 7.3-Arm’s Length) and educate yourself to satisfy your concerns before you advise to anybody. Than, If you still have a question about the legality of the services we provide, please call or email me with your questions. I’ll be more than happy to discuss with you about all of the issues that will be considered a fraud in our services. Moreover, I believe, this is the one and only program so far that I have seen in my 12 years of RE practice, that supports and helps the homeowner to maintain their pride of the home ownership without any prejudice and hidden profit to the bank or to any RE investor (for a change). Please read the MHA Handbook and email me with your question again.

      Ovsanna Khachatryan

  2. oslik59

    I read the passage you cited and low and behold I learned something I didn’t know. Please be aware that my comments were offered not as criticism, but to keep someone in the for-profit world from becoming a criminal without knowing it. Obviously you know that the rules apply differently for non-profits, and now I do too. I’m just now filing for a non-profit, and here is perhaps another reason to do so.

    Years ago I was an FHA originator for the 203(k) with all it’s intricacies, so I have some experience in government requirements. Pray tell, how involved are these HAFA short sales? I’m in Florida if that makes any difference.

    Tks for the enlightenment,

    John Oviatt

  3. Anonymous

    Oh the irony to find a post here by John Oviatt and in it he’s calling someone else a fraud?? Give back my deposit John, this is just the beginning if you don’t. I’m guessing you’re scratching your head not knowing for certain which person this is since it’s certain there are others, if not now in the near future.. JFYI Non profits have strict rules to follow to maintain their non profit status, I’m guessing you don’t want the regulators crawling all over your books so it’d be wise to return all deposit monies you’ve fraudulently scammed from people on properties..

  4. Anonymous

    Well John, first these people schooled you on the law and now the “real piece of work” has too. If that quote from you directed towards me was intended as an insult it failed miserably and anytime I can head off an unethical business person that borders on being a scammer and gain back what was unjustly held from me while exposing a scam and informing other potential victims to be aware, I’ll proudly be referred to as “a real piece of work”. Maybe you’re just in the wrong business as you seem to be very ill informed..

  5. Anonymous

    To whom it may concern, to the owners of this site, regards for allowing my grievance to be posted and aired, it is important to get the word out on such persons or corporations and in this day and age of the net it’s an important leveraging and informational tool that is in serious need to head off such schemes for the benefit of those who do ethical business.. I hope that’s you too.. It’s an important part of our 1st Amendment rights if it is done professionally and ethically as it was in this case as well. Regards…

  6. Todd Rangel

    How does an owner obtaining financing after they have short-saled their home to a non-profit like Fresh Start and met ALL the terms of the lease? We have been unable to find a lender that is willing to finance home for a homeowner that is considered to have been bailed out/had distressed sale on home they are trying to finance. How does the homowner obtaining financing in order to keep their home after the lease back period? If they cannot obtain financing, does Fresh Start just keep their home?

    1. Ovsanna

      Dear Todd, to learn more about this Non-Profit Initiative HAFA Supplemental Directive Program, please read MHA HAFA Handbook Guideline, pg 160, Chapter IV, 7.3-Arm’s Length (I’ll email you the MHA Guideline Handbook) . It is clearly stated that the homeowner is going to rent back and buy the property back from the nonprofit buyer. The whole purpose of the program is to give the homeowners of distressed properties a second chance to stay in their home and buy their property back if it’s been sold to nonprofit through the short sale transaction. Most importantly, the Arm’s Length transaction is removed and it should not give any problems with the lender to buy their property back if they qualify for the mortgage loan, because it complies with the HAFA program guidelines. However, as we all know, some banks just ignore the regulations and create their own guidelines and requirements. We should wait and see what will happen in the next 2-3 years. Also, the Fresh Start non-profit/Investors are considering to provide a financing to qualified sellers/buyers when they are ready financially to buy their property back. Let’s hope it will work for all parties and have the homeowners their second dream come through. Legally and theoretically, it is possible and shouldn’t bear any future problems. I’ll do my best within my professional power and knowledge in any way I can to support and make it happen. That’s all I can say Todd.

  7. Darla

    so it is to my understanding that I would actually have to move OUT of my house, then move back IN my house in order to buy it back from the non-pro?? That’s where ALL the STRESS come from…. THE MOVE?? So how is this helping someone that’s at an age that’s just to old or unable physically (like myself) to move out in the first place???
    Please help me to understand a bit better;)


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