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.
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 John@JohnOviatt.com), since I won’t be checking in for replies.
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.
Respectfully,
Ovsanna Khachatryan
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
386-532-4343