My name is jeffrey abraham I live and work in Denver colorado. I use to be the Marketing Director for different banks and Real Estate company's here in Denver Colorado. I meet a gentleman name Dave Newman about 5 years ago who is an Investor and a Realtor with Remax and he was introducing a program for self-employed people and Potential clients that didn't have the credit to get pre-approved to buy a home. So Mr. Newman started to offer a lease-purchase buy-back option for Self employed client's and Family's that didn't have the credit to buy a home but had the capital to purchase a home but not the credit or haven't been self-employed for more than 2 Years. So they only had to put down 10-15% to Qualify to purchase a home with this program and he has helped hundred's of Homeowners own homes through the Lease option Buyback program other wise Known as the Second Chance Program.
So I thought why not offer this program's to the homeowner that are in foreclosure and families that has lot's of equity to start over and restructure their loan by offering them the same program. Here is an example we have a client that applied for the second chance program and they only owe 250,000 dollar's on their home and they are in foreclosure meaning they are more than 4 months behind on their mortgage and the lender issue a NOD (Notice of default).
They called the bank and asked for a loan modification, and the lender told them that they had a loan modification before in the investor who owns the Note will not give them another loan modification. The house is worth 620,000 and the homeowner has their job's and both of their income are about 100,000 dollars per Year. The rules of the loan modification are that they have to have a debt to income ratio of 31% or more base on the Mortgage Payment which is P.I.T.I.A ( Principal. Interest, Taxes, Insurance, and Home Owner Association fees are known as HOA.
The second chance program called the client and asked them about their debt and they said we have credit card bills and 3 car payment's and College Tuition for 2 of the kids in college so we said we will put together a program giving them cash out to pay off their car loan, credit card bills and giving them enough money to pay the college tuition for 2 years so after that it came down to about a New mortgage of about 375000 dollars giving them a rent payment with the lease buyback program of 2800.00 dollars per month remember with our program the clients are only renting in the equity is their money.
So they are saving over 1500 dollars per Month with our program in 2 years when they purchase the home back they will still have about 200,000 dollars of equity and we also put enough of a downpayment in escrow so the client will have a downpayment to buy the home back.