Lease Back Retention Program
CFO,LLC negotiates with lenders to approve short sales for underwater homeowners. If a lender approves, the home is sold to an investor who provides the selling family a five-year lease at affordable rates, along with a recorded option to repurchase. The lease and option prices are all predetermined at the outset and are a derivative of the investor's acquisition price. This is a no upfront fee service for the Lease Back Program but it does require a Forensic Loan Audit to begin the process. A Forensic Loan Audit cost is $995.
They pass on the majority of the benefits of the short sale discount to the family, thereby creating the incentive for the family to stay, pay and repurchase. We offer the homes to all investors, who are typically private parties looking for higher returns than they can get at the bank and many of whom are equally attracted to the direct positive impact they are having on American families.
Step 1 - Register as an applicant on our website by phone at 888-341-3802. Attend an CFO Event or phone an CFO counselor to learn more about CFO and receive answers to any questions you may have.
Step 2 - Apply
You will sign the necessary documents to proceed and furnish documentation as required by your existing lender. You can cancel at anytime with no cost or obligation.
Step 3 - CFO Negotiates your Short Sale
CFO negotiate with your lender to approve the best possible short sale.
Step 4 - Home Inspection
Once your lender indicates a willingness to negotiate at a reasonable price, a home inspection will be ordered through a local inspection firm. This report will identify any needed repairs as well as the condition of your home. Funds for necessary repairs will be included in the acquisition price and completed within 60 days of the home acquisition.
Step 5 - Sale of Your Home to an CFO approved Investor
Once the short sale is approved by your lender and you agree to the final terms, your home will be offered to CFO approved investors. Once an investor selects your short sale, you will approve the final contract and a closing will be scheduled.
Step 6 - Stay in Your Home
You will now lease your home and attend financial counseling to prepare to repurchase. If significant repairs become necessary during the lease period, they will be completed. However, the cost of any repairs paid by CFO's approved investor will be added to the option price.
Step 7 - Buy Back Your Home
Your financial counselor will link you to an affordable mortgage program in order to repurchase the home. Once your mortgage application is approved, you can repurchase. If you decide to move for any reason, your home will be listed for sale. At the closing, you will split net seller proceeds over the option price with the investor.
REAL LIFE EXAMPLE:
Roseville, Michigan family owed $103,000
CFO investor acquisition price $24,000
Discount on Debt: 76%
$27,600 in the first two years
$28,800 in the third year
$30,000 in the fourth year
$31,200 in the fifth year
Prior Modified Mortgage Payment: $1,280
CFO Lease Payment: $543
Monthly Savings: $737
Estimated Annual Return to Investor: 17%
1. All existing mortgages and other liens are settled at closing.
2. Property taxes are prorated to date of closing.
3. Investor will receive deed along with an owner's policy of title insurance.
4. Investor acquisition price is all-inclusive of closing costs.
5. Property may be managed by a third-party or self-managed by the investor.
6. Repairs funded at closing may be completed by contractor(s) of investor's choosing.
7. Lease is for a 5-year term.
8. Lease payments are predetermined: the first year monthly lease payment is calculated at $375 on the first $10,000 of investor's acquisition price, plus $12 per thousand from $10,001 - $50,000, plus $10 per thousand from $50,001 and up.
9. First-year lease payment may not exceed 33% of tenant's income. If necessary, family members or others may co-sign on lease and have their income utilized in this calculation.
10. Lease payments increase 3% annually.
11. Lease may be extended month-to-month into the sixth year and lease payment will increase 5%. Home will be marketed for sale during this period and tenancy will terminate upon sale of the home to a third-party.
12. Investor pays property taxes and insurance.
13. Tenant pays all utilities.
14. Tenant agrees to participate in financial counseling.
15. Home Inspection is completed prior to acquisition and contractor estimates are obtained on any needed repairs. Funds to complete this work is included in acquisition price and the work is completed within 60 days after closing.
16. Tenant agrees to perform basic maintenance and is encouraged to complete repairs which become necessary during the lease period.
17. If tenant is unable to complete any repairs which become necessary during lease period, then investor pays for repairs and the cost is added to the option price.
18. Option Agreement is recorded concurrent with deed evidencing investor's purchase of home.
19. Option is for a 5-year term.
20. Option price calculated at investor's acquisition price plus 15% in first two years, plus 20% in third year, plus 25% in fourth year, and plus 30% in fifth year.
21.CFO receives 5% of investor's acquisition price paid from the option price when the property is repurchased or sold to a third-party.
22. At the optionee's request, optionor will list home for sale and at the time of sale the optionor receives option price, plus any unpaid rents due under lease, plus reimbursement for any repairs paid for by optionor. Any remaining net seller proceeds are split 50/50 between optionor and optionee.
23. Optionor may sell or transfer the home to a new owner who takes title subject to the existing lease and option.
SALE OR LEASE DUE TO EVICTION (OR VACANCY)
24. In the event that the home becomes vacant due to eviction or any other reason, then optionor may elect to sell or lease the home to a third-party, at optionor's sole discretion. When the property is sold, then the optionee is entitled to the percentage of the net seller proceeds in effect at the time of sale.
DISPOSITION AFTER FIVE YEARS
25. If home is not repurchased or sold to a third-party by end of the fifth year, then the home will be marketed for sale to a third-party. The option price increases to investor's acquisition price + 40%, and the optionee is entitled to 35% of net seller proceeds over option price from sale to a third-party.
26. Eviction will terminate the lease, but does not terminate the recorded option agreement.
27. Investor may obtain financing secured by a First Mortgage on the home. The mortgage amount may not exceed the option price at the time the mortgage is recorded.
Due to the uncertainty of lender approval, homeowners are encouraged to continue to pursue all other options as there is no assurance that CFO will be able to assist. However, when CFO can get existing lenders to approve, then CFO is often the best long-term solution for at-risk homeowners.
CALL 888-341-3802 TODAY!