New Hope for Homeowners facing foreclosure - Lease Back Options allow them to stay in their homes

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 13, 2011 -- Lease Back Options are giving homeowners facing foreclosure an option that will allow them to keep their home. Not only are they being given the chance to keep their home, but to lower their monthly payments and regain the equity that they lost when the housing bubble burst.

Lease back options have been used in commercial real estate for years, and are now making their way into the residential real estate sector to offer another option to avoidance of foreclosure. When foreclosure is imminent, the homeowner had the choice between applying for a loan modification, a short sale, deed in lieu, or abandonment. Many homeowners chose to abandon their homes thinking that there was no hope for them. Banks are not required to participate in a loan modification program, therefore gave many of their customers the run around. In many cases, the loan modification option was never on the table to begin with. Many homeowners that were approved for loan modifications found that when the bank sold their loan again, the loan modification agreement was null and void - the new lender would not honor the agreement!

Short Sales are being negotiated on behalf of homeowners that believe this is their only option to avoid foreclosure and hopefully salvage their credit. The biggest drawback being that the homeowner not only has to vacate the property, but also cannot receive a penny from the sale of the property.

A Lease Back option is a viable option for homeowners facing foreclosure, especially those who owe more than their house is worth. The facilitator of a lease back option will transfer title to the property into a secure entity such as an LLC. The homeowner then becomes a lessee making payments to the Secure entity - the payments are based on fair market rent for the area - and in most cases are much less than the previous mortgage payment that they were making. Payments can be as much as 50% less than the mortgage payment was. The secure entity takes care of homeowners insurance and property taxes during the lease period. A rent credit is given out of each months payment - this credit will go toward the re-purchase of the home at the end of the least term if the owner exercises their option to purchase.

During the course of the lease term, the facilitator will negotiate with the lender to purchase the loan at a discount, bring the loan current, or will negotiate a short sale payoff. Once the resolution is made, the facilitator will acquire the funds needed to meet the terms of the agreement with the bank. This process can take months to even years - and goes on behind the scenes while the owner is still living in the home.

Although the bank always has the final say, in today's market they will almost always agree to terms that are favorable for both the bank and the facilitator. Banks do not want to own homes, nor do they want homes going vacant. Foreclosure can cost an average of $50,000 per home, so this is always a last resort. A bank would prefer to negotiate terms that would either bring the loan current, or get the loan off of their books at a minimum loss.

A residential lease back program, if facilitated by a professional real estate specialist can offer new hope for homeowners facing foreclosure. The homeowner will be able to exercise their option to purchase the home back at the end of the lease for less than market value - giving them equity instead of a money pit. This is truly an opportunity that should be considered by anyone facing foreclosure that would like to keep their home.

Please read more about this program at www.LeaseBackInfo.com. This site will allow you to find a professional lease back facilitator in your area.

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