If a court date has been set for the foreclosure of your home, you might yet be able to stay in your home after the court concludes foreclosure. By agreeing to a separate lease-buyback option, you could pay rent to live in the home you once owned and possibly regain ownership that was lost to foreclosure.

Living In Your Foreclosed Home

Is this task as easy as it sounds? No, but it isn’t outside of the realm of possibility either. Your continued reading will shed some light on this matter, possibly helping you to stay put after a foreclosure ruling has been concluded.
A lease-buyback option is something that can take place after the foreclosure decision has been handed down by the courts. In this particular situation, you no longer own the home and the new owner – which is usually your mortgage company – can order you to leave the property.

Congratulations, You Are Now A Tenant

So, why would a mortgage company consider allowing you to stay in a home you could not afford to make payments on?

There are two reasons that come to mind:

You may live in an area that is economically depressed and finding a new owner could be a very difficult task for the lender. Most lenders want to dispose of a foreclosed home, preferring not to have to deal with a tenant. Since they already have a relationship with you, this is something that you may be able to pull off.

In addition, since the foreclosure ruling was finalized, your financial situation could have improved to the point where you may eventually be able to handle mortgage payments once again. Perhaps a loss of income brought about the foreclosure and you’ve since landed a new job.

If your one-time mortgage lender agrees to let you stay in the foreclosed home, you will be responsible for signing a lease and making monthly rental payments directly to them. Depending on the terms of the agreement between you and your new landlord, the mortgage company may set aside a portion of the lease money you pay each month as a contribution toward a down payment on your home.

An Unusual Agreement

Then, after an agreed-upon duration of time, one or two years for example, the mortgage company may consider:

Selling the house back to you

Allowing you to continue renting from them

Offering the home for sale to a third party

These types of agreements are not common and you must state your desire to stay in the home before foreclosure is finalized. Once foreclosure has been completed, the mortgage company is under no obligation to work with you and can have you removed from the premises.

Article provided by www.SayHomeSell.com
Krayton M Davis, Executive Principle
nBuy Associates

Academy Mortgage

(202) 396-5813
4215 Hayes St Ne
Washington, DC