Special offer

New provisions for Leasebacks

By
Home Builder with WCI Communities

Democrats and Republicans unanimously voted to pass the Neighborhood Prevention Act.  This program if also passed in the Senate would allow banks to negotiate option purchase agreements that would position former owners to buy back their homes.  It would also remove roadblocks that federally regulated banks face now that keep them from entering into long-term lease (up to 5 years) with former owners of foreclosed homes. 

One of the many benefits of this program is it would keep the property occupied with a tenant that would have a vested interest in maintaining the property as well aid in the elimination of the blight that has been happening in many neighborhoods with foreclosures. 

While this is just a simple brief of the program, it does make you think, why not offer this program before a homeowner gets to that point of foreclosure or short sale.  Wouldn't all sides benefit by keeping a homeowner as that, a homeowner?

 

 

Comments (4)

Matt Hudson
VIP Realty Group, Inc. - Naples, FL

Michele

This is very interesting and I had not heard of this. Can you email me some additional details?

Hope all is well. Will I see you at FAR? Have a great week..

Matt

Aug 19, 2009 09:16 AM
Brian Griffis
Realty Choice - Springfield, MO

They need to come up with a catchier title.  The neighborhood PREVENTION act?  Must be running out of good titles.  Anyway sounds like a good start.  Do you think this could lead to moral hazard as people may stop paying just so they can renegotiate their loans? 

Aug 20, 2009 01:03 AM
Anonymous
Michele Harrison

Truthfully, if they did a proper mitigation up front, most of the situations would be handled before they get to the point of foreclosure.  Progressive banks are doing just that.  Find a affordable housing advocate in your town that truly understands the path to mitigation and they will be able to guide you through the process.  Like anything else the government does, you have to be a detective to figure it out.

Aug 21, 2009 01:12 AM
#3
Michele Harrison
WCI Communities - Naples, FL
MBA, CRS, CRB, MIRM

http://www.opencongress.org/bill/111-h2529/show

Check it out, the Neighborhood Preservation Act

Aug 23, 2009 03:10 AM