SandS™ Homeowner Assistance Program
“Sell & Stay” Buy Back Opportunity
What is SandS™?
Simply put SandS™ is an acronym for “Sell and Stay.” The basic principle of SandS™ is to keep American Homeowners who have experienced real financial hardship in their homes. SandS has developed a housing program that provides tremendous value to both the homeowner and investor and is legally compliant with the many laws that have been enacted at both the Federal and State levels.
What does SandS™ do?
SandS™ buys the home directly from the homeowner’s lender in a Making Home Affordable HAFA Short Sale Transaction at a mutually agreeable discount; this provides incentives for SandS™ Socially Responsible Capital Partners to bring their assets to the transaction. An appraisal is ordered from a licensed 3rd party appraiser to determine the value. After the property is purchased in the Short Sale transaction, it is then leased back to the homeowner who has 3 years to repurchase the home at today’s 107% of todays market value. The investor earns the difference between the discounted price and the market value as well as the rents; the homeowner eliminates the negative equity in the home through the Short Sale transaction.
Who Qualifies for SandS™?
•Keep in mind that in order to qualify for SandS™ there are some critical guidelines which must be followed. The following is a brief list of the primary underwriting guidelines.
•Homeowner must have verifiable income; all income will be verified to guidelines.
•Temporary income such as Unemployment, Short Term Disability, etc. will not be allowed.
•The homeowner’s income must have a Front End Debt Ratio of no greater than 40%. This is the homeowner’s gross household income versus the new lease payment.
•Primary Residences only, no rental or income producing properties allowed.
•1-4 unit properties are permitted; however the owner must reside in at least one of the units.
• No 2nd homes, rental or income producing.
•Property must be in Marketable Condition.
–Marketable condition is defined as there are no deferred maintenance issues such as leaking roofs, missing siding, etc. There also is no functional obsolescence of the subject property such as missing or non-working A/C Units, missing water heaters, sinks, tubs, toilets, counter tops, etc…
•The homeowners must owe at least 20% more on the 1st mortgage then their home is worth.
–Example: Homeowner who has a home valued at $100,000.00 must owe at least $120,000 on the 1st mortgage.
•The home should be 2 or more payments past due (Some exceptions allowed).
•Under no circumstances should anyone encourage a homeowner to skip or miss payments to their mortgage(s). If a homeowner is capable of making their mortgage payment(s) they should do so.
•Bankruptcies: Homeowner may not be in active bankruptcy of any type at application or during the lease period.
The SandS™ Process
•Homeowner meets with SandS™ Certified Licensed Real Estate Agent or Broker (SCLA).
•SCLA and Homeowner prepare a SandS™ Homeowner Application Package.
•SCLA submit to SandS™ Housing Program underwriting.
•Upon submittal of SandS™ Homeowner Package, the homeowner will be required to pay for an Independent Home appraisal at a cost of approximately $350.00.
•SandS™ Underwriting Determines Eligibility.
•Underwriting determines if home meets SandS™ Guidelines of acceptance Structural, Marketability, Pride of Ownership, and Clear Title.
•When approved, homeowners are presented with SandS™ Acceptance Package.
•Homeowner establishes a Savings Account with escrow holder and begins making monthly deposits of monthly lease payments.
•90 Days (3 Payments…1 per month).
•1 Payment will represent 1st month Lease Amount, 2 Payments will be held for Security Deposit.
• Submit monthly statement to SandS™ for compliance.
Within 30 Days of SandS™ Program Acceptance:
•SandS™ will present an “All Cash” offer to purchase home.
•Homeowner will apply to the US Treasury’s Making Home Affordable “Home Affordable Foreclosure Alternative” or HAFA program.
•SandS™ will complete this application with assistance from and on behalf of homeowner.
•Upon acceptance of offer, SCLA will load home into MLS and mark as “pending.”
•SandS™ will contact sellers lender to negotiate a mutually agreeable price and terms.
• SandS™ Housing Program online Short Sale System allows the homeowner 24 hour access to SandS™’s secure transparent tracking system.
• Homeowner may be required to supply updated documents to meet compliance of SandS™ Housing Program Guidelines .
•Upon lender acceptance of SandS™ Purchase Agreement:
– Escrow and Title will be opened (Independent 3rd Party)
– SandS™ Verifies all terms of purchase and completes all disclosures and documents to meet strict state & federal compliance.
– Upon Close of Escrow Homeowner signs lease and has 3 years to repurchase the home at or near current market value.
SandS™ Housing Program Guidelines
•Home Value Range of 1st mortgage – Not Over $729,750.
•1st Mortgage must be Upside Down by 20% or more.
•Preferred to be 60 days or more delinquent on mortgage payment, but not required.
•Front End ***debt ratio of applicant(s) not to exceed 40%.
•Full documentation to include:
–W2 employees – most recent pay stubs.
–Self employed – 6 months most recent bank statements.
•Home Must Meet Strict SandS™ Housing Program Guidelines.
•No IndyMac (OneWest), HFC Beneficial, or PNC Liens…No Exceptions!
•All other Banks evaluated upon submission.
•No active bankruptcies at or during submission.
•SandS™ does not participate in sale date postponement.
Cost to Homeowner
•Approximately $350 for Independent Certified Property Appraisal.
–Homeowner will be notified by SandS™ counselor when to pay this fee.
–This fee will be payable to an Independent 3rd Party Appraiser within 24 to 72 hours after Homeowner Application is submitted.
•$500 program administration fee.
• Homeowner may be required to pay for HOA resale package.
SandS™ Housing Program
Family Assistance Corporation in partnership with DSPros
Keller Williams Realty Southwest
SCLA Program Administrators
6180 Brent Thurman Way, Suite 100
Las Vegas, NV 89148