Monday, March 29, 2010

Neat idea for keeping people in their homes

Dave Dziedzic, owner of RealCore Realty International in Phoenix, is starting a program called Housing Angels, to create partnerships between investors and home owner-occupants.

It’s designed to prevent foreclosures through designated short sales. Basically, the investor buys the home, leases it to the homeowner for a few years, and allows that person to buy it back at a lower price.

Out here in Cowboy Country, half the homeowners owe more than the houses are worth, including your humbleness here.

It’s good for the investor because the investor has a tenant with a stake in keeping up the home.

The test case homeowner has a $300,000 mortgage, now worth $120,000. The bank agreed to let him short-sell it to a Canadian investor, who will sell the house back to him at $160,000 in three years. In the meantime, he pays rent.

Of course, things can go wrong. Either the landlord or tenant could back out, or the tenant could fail to get a mortgage at the end of the time period.

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