Short Sale, Lease Back, and then Re-Purchase your home? Is this really an option for Distressed Homeowners? We’re not sure…


Short Sale Lease Back – SSLB Program for Distressed Homeowners is one of the newer “Options” Available and is causing a wave of controversy. Here is why; HAFA Guidelines were amended in 2011 to allow Short Sale Lease Back (SSLB) as long as a Non-Profit Corporation registered as a 503 (c) is the purchaser.  See Section  7.3 of Chapter IV of the Handbook. This SSLB Program is seeing some success in California and gaining momentum in other states by being used in advertising as a “Distressed Homeowner Option“.  However, we see several caveats to these HAFA guideline amendments and the SSLB Program, as it has been presented.  On the surface it appears to be like most government sponsored options and a major reason the Making Homes Affordable Programs have not seen the results expected, is that the Lender | Servicer has to first agree to participate, establish that they have implemented guidelines with HAFA, and that they then get to determine if you are approved or qualify for this “Option”.  The criteria for this program is that you have to meet the following;

  • Lender | Servicer approve or qualify home in advance
  • Sale or transfer property to a Non-Profit Corporation
  • viable or verifiable Hardship
  • Pay fair market value in rent
  • Stay in the home for three years
  • Complete a Short Sale in this time frame to a Not for Profit Corporation, Not specified or monitored by HAFA
  • Transaction for both the purchase, lease-back, and Short Sale have to be completed by this Non-Profit Group

Again, HAFA or as many government programs do, leaves the cooperative power in the hands of the Lender | Servicer and their Investors, through guidelines and approval stipulations.  An Attorney | Broker in California pointed out, and we agree, that Fannie Mae and Freddie Mac have “Arms-Length Transaction” stipulations or restrictions, which comprises over 90% of the Distressed Home Loan Inventory.  Thus, your margin of success is now limited to 10% of the remaining lenders | servicers | investors.

What concerns us even more, as evidenced by scenario’s being presented to the Grievance Committee in the Las Vegas Market, is how some are presenting and mis-representing variations of the original SSLB Program. These parties have been discovered, to some degree, to be preying upon Distressed Homeowners by offering enticing alternatives such as a purchase back solutions.  It’s our belief these parties are taking advantage of Distressed Homeowner’s emotions that are wanting to stay in their homes at today’s prices.

Homeowners Be aware;

These abuses premised on this SSLB Program are not based on what’s being told to some Distressed Homeowners when they sign-up, it’s what’s not being disclosed, that is the concern!

“What if my Short Sale fails and I have already agreed to sell, my home to the Non-Profit Group?  In fact, in one situation the home was already transferred via power of  attorney and a quit-claim deed.  Thus the answer was: Oh, didn’t we discuss the risks initially? Sorry and by the way, you have 30-days to move, if that….”

“Now that the house is still going to foreclosure, where did all my rent go to that I paid the Non-Profit Group and/or Investor while under review? The Answer: Oops, I’m sure we discussed this possibility, sorry and by the way, you have 30-days to get out, and no refunds……” This mis-use of the SSLB was done under the pretence to collect rents and never stay the foreclosure or assist in helping the homeowner.

“This was a great program, Thank you! I am on my feet again and ready to buy my house back. The Answer: Oops sorry, did we forget to mention that one of the conditions are that you cannot by your house back due to the lien holders policy on Arms-Length Transactions! Of course, you may continue to pay rent to the Non-Profit Corporation or  current Investor.”

Understand that the SSLB Program does not allow for you to re-purchase your specific home. Thus, those advertising, may be over promising, or potentially misleading you to move forward with an SSLB option will not deliver on promises to keep you in your home past the three (3) year stipulation by the HAFA guidelines. Any party that hooks a Distressed Homeowner with the SSLB promise, which results in a flip for profit benefit raises concern.

The scenarios mentioned are current abuses of what we are already seeing in the Las Vegas Area.

The SSLB Program, though allowed by HAFA, has not evolved enough in this market. After hearing the Distressed Homeowner’s complaints of not keeping the negotiations in their directive control during the bank’s review of a loan modification, deed-in-lieu, deficiency release, or short sale, we believe there are much better options available that have fewer challenges and fewer opportunities for fraudulent practices, that can be accomplished with our assistance.

We are not sold on the SSLB Program, the complications created by the HAFA guidelines, or the willingness of lenders | servicers to participate other than on a limited basis. Thus, the Neighborhood Home Rescue Program will present the SSLB option benefits, in addition to the risks so, the homeowner has a better understanding.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  See our most recent Video regarding Distressed Homeowner Options or schedule an appointment with one of our associates. We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at, or call us at 702-869-9999.

The Platinum Elite Group or Follow-us on Facebook | Twitter | Linked-In | Trulia | all links are on the right column or our HomePage.

Related articles

Which Option is Best for me as a Distressed Homeowner? Watch and See!

Do I keep paying the bank? Do I become a Landlord? Do I do a Loan Modification? Do I do a Short Sale or Modified Pay-off? Foreclosure or Foreclosure Mediation, is it an option or is it inevitable? Do I turn it back to the bank through a Deed-in-Lieu? I am sure the bank likes that choice, however, what does this do to me and my credit? Bankruptcy? Option or Strategy? You decide?!  As a Distressed Homeowner what Option do you I select that is best for my situation, that gives me the most control and what are the ramifications?! Watch our second video in our Neighborhood Home Rescue Series and decide for your self:

In this Video Series we have covered the Market Overview for Las Vegas and in this video you will learn Who and What is the Neighborhood Home Rescue and much, much more………..

  • Learn about the Neighborhood Home Rescue purpose and mission statement
  • It is a Network of Professionals
  • Works with Banks
  • Educates the Homeowner who is Distressed which are the best “Options” available
  • No Fee | No Advance Cost Programs first and foremost
  • Costs covered and not covered
  • Costs that might fall back on Homeowner:
    • HOA Fees
    • Transfer Fees
    • Compliance Fee
  • Options to Homeowners
    • Continue to pay Bank
    • Become a Landlord and Rent out property
    • Loan Modification (5 Year temporary fix and puts you upside down in most cases)
    • Short Sale – A Loan Modification with deficiency release @ current market value
      • Most Control
      • Position and Location
      • Costs known and a tax write-off
      • Debt relief | Deficiency Release | Quick Credit Recovery (10 – 24 Months)
      • Pros and Cons to Credit Ramifications
    • Deed in Lieu – Debt relief for only 2013, what about years after 2014+
    • Foreclosure and Foreclosure Mediation 30-120 day process
      • $200 Fee by Homeowner which stops or slows Foreclosure (Strategy)
      • Bank Options are to Modify | Short Sale | Deed-in-Lieu | FC or Start over
    • Bankruptcy – Chapter 7 or 13
    • Moving forward with Lending and Lending Options
    • Estate Planning and Asset Protection

Guest Speakers are joint contributors to the Neighborhood Home Rescue Program and offer free consultations through the Network. If you want to discuss your circumstances in more detail, receive a free consultation, or if you want to learn more regarding the Neighborhood Home Rescue contact our Hotline at 702-675-3000 or e-mail us at, we look forward to Helping Distressed Homeowners!

Mission Statement:

Outreach Program for Distressed Homeowners

Designed to inform and help Homeowners understand how to work with No Cost Programs and No Advance Fee assistance resources available while obtaining information to make a more healthy decision for their family.

Did we learn anything? From the Last Bubble that Burst…..

The Las Vegas Home Market is still reeling from “The Real Estate Bubble” and yet we might be repeating history.  Everyone can read Headlines and knows that many indicators are up and creating excitement.  Homebuyers that had to sell short are already back in the home buying process.  Investors have been speculating with Flips and have already seen profits from properties that they purchased right after the bubble burst.  With inventory tightening this is pushing prices up and we again are seeing the “Offer” Frenzy, with multiple offers on much of the new listings on market along with Builder’s starting the lottery system with small phase releases.  We get it, everyone wants the highest and best price.  However, this may be short-lived or will at least stabilize as LPS reports over 1.2 Million homes are in foreclosure, down from 1.5 YoY, this is still a great deal of inventory to absorb along with 900,000 housing starts throughout the nation.  This is further complicated by inflated BPO’s (Broker Price Opinion) as outlined in our previous article, “Are Banks Stealing Homes?”, which will, if allowed to happen, push more homeowners into foreclosure and not allow the market to fully recover prior to over inflated home values as was experienced when no one thought it possible.  As Nike’s controversial new Ad stated, “Winning takes care of Everything,” this may be fine for those on the winning side of this recovery, what about the homeowners left behind with bad loans from predatory lending and exaggerated values resulting in over-leveraged property.  Lets not let this happen again.  Be an informed Seller, Buyer, or Investor, weigh your options, and know what is best for you.  The Neighborhood Home Rescue Workshop Video series has released chapter one with our next Chapter, “Homeowners Options“, being released the first week of April, which will assist you in better understanding the market, what placed us in this circumstance and how a healthy recovery will include help for homeowners impacted by deHouse Bubbleregulation of the Credit Derivatives in the 2000’s.  For notification of our next video release email us at or call 702-869-9999.

The Platinum Elite Group


Predatory Practices still in full swing against Homeowners?

Update to Predatory Practices: The property in question that brought this Nationstar vs. issue to light, has now closed! We were able to successfully remove the Auction Task and complete the Close of Escrow last week without participating in their mandatory process described, below. This was done by the cooperation of the Platinum Elite Group Team and Negotiation Service Providers as well as all of those that are involved in any transaction that is distressed.  Thank you to everyone that participated, responded, and commented on this article.  It is the collaboration and activism that empowers us to push through the complexities thrown at us through the Lending servicers and the sometimes unrealistic guidelines set in place by the investors.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at, or call us at 702-869-9999.  You call also Follow-us on Facebook | Twitter | Linked-In | Trulia | all links are on the right column or our HomePage.

For those of you that missed the original article here you go;

Predatory Practices still in full swing against Homeowners by Nationstar Mortgage Holdings, Inc. (NSM) through the assistance of  Bloomberg Business Week has reported in this linked article, “Nationstar Sued for Selling Loans Rather Than Servicing“. Read the whole article and realize what is not pointed out is “Homeowners” that are in default, are not mentioned.  However, just in the past few days, through the negotiating  company Negotiation Service Providers, LLC, Homeowners who are in default and actively participating in Short Sale Negotiations and under contract with all terms and conditions agreed upon, are being instructed to sign a “Nationstar Mortgage’s Short Sale Terms and Conditions” Agreement.  In this document are 12 Twelve Terms and Conditions, the most alarming are, as stated herein;

Term No. 4: Nationstar Mortgage reserves the right to market your property and to obtain additional offers during the period the offer you have presented is being reviewed. Nationstar Mortgage may retain to market your property to obtain these offers.

Can you say, Contractual Interference?  This is going to get ugly before a resolution is evident, this is why we have an attorney assist program.

Term No. 5: You and your real estate agent agree to cooperate with during the auction process by, including, but not limited to, making your property available for at least one (1) open house date prior to the auction date and directing any interested parties to submit offers through the auction process.  Etc…….

How do you think the homeowners can place their home back on the market when they already have an Offer and Acceptance (which is a complete full and binding contract), with agreed terms and conditions, and who also has complied with a counter offer from Nationstar.  Now all parties are under a binding contract.  Through proper contract negotiations, you should be able to count on all parties to use fair business practices.  This is illegal from a Nevada Real Estate Practices perspective.

Term No. 7: If Nationstar is able to obtain a higher offer than the currently submitted offer, Nationstar reserves the right to evaluate the new offer instead.

Again, as mentioned above, this is interference with a current and active Real Estate Contract in place between the seller and purchaser. Nationstar and are acting as if they already own the property and can dictate the disposition of the negotiations through placing it on Auction for four (4) days. Would someone tell them that they don’t have that right or privilege until they properly foreclose on the property.  Oh, that’s right, that’s the other part of this story that has been left out.  Nationstar has told us, through their negotiator that they have a Trustee Sale Date through CalWestern Trustee Corporation for March 18th, 2013.  According to our affiliate company NSP, LLC, the title company, public records, and Attorney Crystal Eller who conducted her own review, there has been no Notice of Default filed.  In addition, a Certificate for Foreclosure has not been issued as is required in the State of Nevada under the Nevada Foreclosure Mediation Program.  This is covered under the Nevada Statutes since the passage of AB Avoid_Foreclosure_REpage149 in 2009.  This is Predatory and illegal on multiple levels.

Term No. 8: In connection with the auction marketing services provided by, a buyer’s premium in an amount not to exceed 5% percent of the winning bid amount shall be added to the winning bid amount to establish a “Total Purchase Price” to any buyer obtained by  The Buyer’s Premium will not apply if the originally submitted offer is the highest bid; however, if the original offer is driven higher by bidding activity, the buyer’s premium will apply to all bidders, including the original buyer.  The buyer premium shall be paid to at closing……..

What is touched on in the Bloomberg Article written by David McLaughlin & Jody Shenn, is that Investor’s are appalled that this “Buyer’s Premium” is being shared with Nationstar?!  Is this not a breach of their fiduciary duty to their investors as well to the homeowners involved?

Term No. 12: Nationstar Mortgage will evaluate your current offer or the higher offer and make a firm decision on their acceptability.

It was very well said on by other Short Sale Professionals regarding this issue, quote; “Servicers and Investors are handling Short Sales as they do their REO’s. The obvious issue is that they are not the owner of the property as they are with an REO.  Basically, they are trying to control the listing agreements, list price, marketing, and contracts.”

Understand that’s bidding platform, eliminates the Appraisal Process, which detrimentally affects the ability to Short Sale at all, because properties with Freddie Mac, Fannie Mae, and FHA financing will not even meet threshold investor guidelines.

The most frustrating result of this circumstance is that Nationstar is stating in its E-mail to the Homeowners through Negotiation Service Providers, LLC is that in order to continue with The Short Sale Process the document must be signed by the Homeowner and Listing Agent then returned by a specified date or face foreclosure. Quote, “This Program is not Optional.” Again, Predatory and unfair collection practices are being used by Nationstar.

Crystal Eller, who has also been retained by the borrower, plans to contact Nationstar and to demand that they cease and desist these Predatorial and unlawful practices against our mutual client and homeowners in the state of Nevada.

If you are experiencing the same difficulties as described in the Bloomberg Business Week Article, this Platinum Elite Blog Page, or with Nationstar, or other Mortgage Servicing entities, please contact our offices and let us see what options are available to you in your situation.

Thank you, Donald Lainer Team Leader for Platinum Elite Group