POWER WOMAN BUSINESS CENTER’S HOMES PROTECTION PROGRAM

POWER WOMAN BUSINESS CENTER’S HOMES PROTECTION PROGRAM

“Homeowners may qualify for a second chance to buy back their homes at real market value.”

SANTA CLARITA, CA, August 17, 2012.  In an effort to continue helping out the United States economy, nonprofit organization Power Woman Business Center (501C3) will implement a short sale buy back program for eligible homeowners.  In a conventional short sale, the homeowner must vacate the home, while the lender reduces the principal balance owed by the homeowner in order for a third party transaction to go through.  In no case can the homeowner participate in any arrangement to purchase the property back.  But there is a legal exception to this rule.  According to the Home Affordable Foreclosure Alternatives (HAFA) Program (which is sponsored through a non-profit 501C3 in conjunction with Stabilization Home Affordability Revitalization Program), the only way for a homeowner to purchase the property back is if a non-profit organization is the short sale buyer, and that’s where Power Woman Business Center comes in.

The process is as follows:

1. The homeowner(s) enter into a listing agreement as “seller” with a California licensed real estate company.

2. Power Woman Business Center becomes the “buyer” of this sales transaction.

3. The California licensed real estate company representing Power Woman Business Center will process the short sale, obtaining the best short sale price as possible.

4. Upon approval of the lender of the “purchase price” and approval of the seller and buyer regarding the purchase price, the buyer and seller will deposit funds to escrow.  Buyer will then execute a purchase option in favor of the seller.  Seller will sign a rental agreement in favor of the buyer.  Power Woman Business Center will hold the property for up to three years, giving the previous homeowners time to purchase the property back.  The previous homeowners can buy back the house at any point in those three years.

It is a win-win situation for both parties that give homeowners and their families peace of mind.  Power Woman Business Center’s mission, along with helping entrepreneurs, has always been to help the community prosper, and with a plan like this, it would not only help the community but the economy as well.    

A typical transition is as follows:

Step 1.  An owner owes $425,000 on a property currently valued at $300,000.

Step 2.  Buyer and seller enter into a short sale agreement.

Step3.  The lender agrees to a purchase price of $240,000.

Step 4. Buyer deposits $195,000 or 65% of the current market value.

Step 5.  Seller deposits $45,000 or 15% of the current market value.

Step 6.  Buyer assists the seller in obtaining new financing of $255,000 to re-purchase property.