| 1. |
What is Bella Homes, LLC?
Bella Homes, LLC is first and foremost a premiere, real estate investment company. We purchase residential and commercial properties and offer them as leaseback opportunities to qualified homeowners. We do not offer loan modification agreements, short sales, defenses to mortgage foreclosure actions, mortgages, or renegotiate mortgages for others.
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| 2. |
Does Bella Homes, LLC engage in foreclosure defense actions?
If Bella Homes has purchased a property with an underlying mortgage at risk of foreclosure, we will conduct a forensic audit to determine if the mortgage complies with federal and/or state law. If we determine the mortgage to be illegal, we will engage our legal team to file a lawsuit against the lender to prevent the lender from instituting foreclosure proceedings. In this case, we will engage in a foreclosure defense action in order to protect our investment in a property that we acquired as part of our program.
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| 3. |
Does Bella Homes negotiate a lower payment and principle balance on my behalf with my mortgage company?
No, Bella Homes' objective is to purchase your mortgage from your lender at a discount.
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| 4. |
After three years of renting, if the client can't afford to buy do you offer to rent to residence again?
Yes, Bella Homes will extend the lease.
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| 5. |
What formula determines the amount of the monthly lease? Is this without escrow?
40-60% of total monthly mortgage obligation, there is no escrow included in the rental payment, and also based on income.
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| 6. |
What home values do we work with?
A minimum of $200,000 up to $10 million.
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| 7. |
If there are liens on the property, will the title company take responsibility to clear or does title need to be clean prior to our closings?
Title does not have to be clean for us to close the transaction, but we have to know we will be able to resolve the lien. The end of our process will wipe out all liens.
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| 8. |
How long does it take from the date I sell my home to Bella Homes, to purchase or payoff the underlying mortgage on the property?
Each case is different, but it can take anywhere from 3 months to 30 months to complete that process.
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| 9. |
What are the restrictions as far as property type for commercial deals? Can it be a gas station, small hotel, etc?
Commercial deals are reviewed on a case-by-case basis. Because that is not our primary buying criteria, we will look at any commercial deal, but we can’t guarantee all commercial deals will be accepted.
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| 10. |
Has anyone bought back his or her house from us yet?
No one has purchased a home back yet from Bella. The minimum lease term is 3 years, and no one has been in the program long enough to have reached that point.
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| 11. |
Will the mortgage be paid off at the Bella Closing?
No. Bella Homes is a national mortgage buyer. In order for us to negotiate with your lender, there are several documents we need signed at closing. The negotiation process could take anywhere from six months to a year or as long as three years if we have to litigate. We have a strong legal team with several strategies we use against the bank, however, we do try to buy the mortgages on friendly terms first.
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| 12. |
Will Bella Homes, LLC be making payments on the loan?
No, Bella Homes does not keep the mortgage current during negotiations.
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| 13. |
If Bella Homes becomes the owner of record how is that accomplished? Does Bella Homes take a second on the property? How can Bella Homes own the home yet the client is responsible for the mortgage payments in the eyes of the lender?
Bella Homes becomes the owner of the property by the fact that they will purchase the property through a traditional real estate closing. There will be a purchase and sale contract that will identify the purchase price as the amount of the first mortgage on the said property. If there is a second mortgage on the property, at the time that Bella Homes purchases the first mortgage on the property they will attempt to settle the second mortgage. If Bella Homes is unable to settle the second mortgage we will transfer the property to one of our subsidiaries and foreclose on ourselves, which will therefore wipe out the second mortgage and any other liens on the property. This is perfectly legal, and is a strategy that Bella Homes attorneys have put in place. Bella Homes will own the home subject to the underlying mortgage. If the tenant exercises their option to purchase the property back, the only way Bella could provide clear title to the property would be if the mortgage has been purchased and any other liens have been removed from the property. With this in mind, up until the time that Bella Homes buys the mortgage from the lender, and wipes out any of the liens on the property, Bella Homes ownership of the property is subject to the underlying mortgage and/or liens.
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| 14. |
I had a question on the terms of Bella Homes owner financing offered; should Optionee not be able to obtain outside purchase loan at time of exercise?
Bella will offer, through a subsidiary or affiliate company, a mortgage to each tenant who exercises their option and through the lease term remain current on their lease. The rate of the owner financing will be 1% over prime.
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| 15. |
Also, are there any provisions for the homeowner, if at end of lease term, Bella Homes is still unable to negotiate purchase with existing lender and elects to deed property back to homeowner?
At the end of the lease term, if Bella Homes has not purchased the mortgage from the bank, Bella Homes will either deed the property back to the client at that time or Bella will offer an extension to the lease to the client for the purposes of purchasing the mortgage. In most cases this will be an issue where Bella has sued the bank over the mortgage and that suit is still tied up in the court and if that is the fact it will be wise for Bella Homes and the tenant to extend the lease to allow the legal process to get to the point of a settlement conference or trial in order for Bella to purchase the mortgage.
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| 16. |
How much time is given when someone wants to start paperwork but money is tight? Can we defer payments until they get funds together?
Bella Homes will look at this on a case by case basis.
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| 17. |
If the bank does not agree to write down the loan then do we give back the rent payments or at least the percentage that was to go to the down payment of the purchase later?
No. Bella will not refund any of the lease payments. All of the lease payments are earned as of the date they are made as of the terms of the rental agreement.
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| 18. |
When the bank agrees to take less than what is owed on the home, what if the homeowner decides to NOT exercise their exclusive right to repurchase?
If Bella Homes purchases the mortgage from the bank and the homeowner has been renting but does not exercise their right to repurchase Bella Homes will list it on the Multiple Listing Service (MLS) when the lease is up.
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| 19. |
Is the short sale loan marked down with our program?
No. Bella Homes buys mortgages. In our business model we do not deal with short sales.
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| 20. |
What if the client is getting unemployment checks as their income source?
The actual source of income is not particularly important. As long as they can afford to pay a minimum of $1000 rent, and their house meets our program requirements, then they will be considered.
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| 21. |
If the client is paying lease payments to Bella Homes, and the bank is not receiving any payments and the lease payments are not going directly to pay for Legal fees, where is the value exchanged?
The value of the exchange is simple. Bella Homes is buying the property for the amount of the first mortgage. However, at that time the homeowner signs the lease to become the tenant with the exclusive option to purchase the property back. The value to the client is that after Bella Homes purchases the property and does a forensic audit of the mortgage and determines the loan is illegal, and to date this has been 92% of every mortgage, Bella will defend the property that it now owns from any legal proceedings from the bank. Therefore, this is giving the homeowner, who is now the tenant, the opportunity to live in the property for the term of the lease. Otherwise the homeowner could face a foreclosure in which case they would lose the property and be evicted.
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| 22. |
Won’t it be hard for them to get money for 1st and last 2 months if they are already behind on payments?
Bella Homes has two general categories of clients. The first category is a client who is upside down on their mortgage and has made a decision not to pay it and save the money. The second category is a person who has lost the income needed to pay the mortgage and may not have the savings. In the second situation Bella Homes will consider on a case by case basis how they may be able to address that with a payment play. When clients have a payment plan for money due, the representative is not paid until Bella Homes is made whole.
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| 23. |
What is the expense to the client for not closing and costing the company money?
There is no cost to the homeowner if they do not close with Bella Homes LLC.
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| 24. |
Does Bella Homes have examples where the attorney has successfully negotiated with a major bank?
Yes, however attorneys will not discuss other clients' negotiations as that would be unethical.
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| 25. |
How can you get closing attorneys you like approved by Bella Homes to use in your territory?
Forward the name, phone number, and email address to legal department.
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| 26. |
Who is going to pay the closing attorney?
Bella Homes will be responsible for paying the costs of the closing attorney, and all costs of the closing. However, if the client decides to retain their own lawyer for the closing, then the client would pay the costs for that attorney.
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| 27. |
Does Bella Homes have one company that does the titles for everyone
No. Bella Homes works with several, depending on where closing takes place.
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| 28. |
When the client decides to take the option of buying back the property are there additional fees?
No, just normal closing costs.
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| 29. |
Is the lease caped off at 3 years or will it go up 10% every year it is extended?
It will increase 10% every year for the 1st 3 years, and 5% for years 4 through 7.
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| 30. |
If Bella Homes can’t purchase their mortgage do they just keep renting?
If Bella Homes is unable to purchase the mortgage, we will deed the home back and refund the security deposit and any prorated rent paid but not used. It’s important for the clients to understand; Bella Homes will spend more in legal and administrative fees resolving the mortgage versus the rent we collect.
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| 31. |
Who pays property taxes during the period?
Bella does not pay property taxes. However you can send tax bills to mortgage company, and they will pay it.
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| 32. |
What happens if we work on a deal that is not in our state, what do we do about the cashiers check at the time of closing?
Cashiers check and closing docs will be collected by closing attorney or notary, and they will forward them to Bella.
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| 33. |
What needs to be done if the client has a second mortgage?
Once Bella Homes has negotiated the 1st mortgage and owns it, then it will make an offer to purchase the second. If the offer is not accepted Bella will have one of its Attorneys move to wipe out the second mortgage.
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| 34. |
The board has to approve a house after the pre-closing statement is signed, is there any reason it wouldn’t be approved?
The only reason why a house wouldn't be approved by director of acquisition, is if something negative appeard in the title search.
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| 35. |
Do clients repurchase at 90% of the value today or in 3 years?
They purchase the home at 90% of the appraised value at the time they buy property back from Bella Homes.
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| 36. |
After three years of renting, if the client can’t afford to buy do you offer to rent to residence again?
Yes. Bella Homes will extend the lease.
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| 37. |
What if someone is referred to us who has a $150,000 mortgage? Do we tell them no?
Yes, Bella Homes does not work with houses in that price range.
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| 38. |
At exactly what point do the renters have to pay the 1st, last and security deposits?
The first and last 2 months of lease payment are due at the time of lease signing. We require a cashier's check made payable to Bella Homes, LLC.
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| 39. |
On condos, will the past due HOA’s (Home Owner's Association) be brought current as well?
Not unless required by state law.
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| 40. |
What if the client is current and wants to take advantage of this program and he/she generally fits our type of deal? Would this be something to consider?
Yes, but the client needs to understand Bella Homes will not be keeping their mortgage payments current, so they will take a ‘hit’ on their credit. However, at the same time Bella Homes purchases the mortgage we will return the mortgage docs stamped paid in full and report it to credit agencies.
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| 41. |
Once a transaction is approved by Bella Homes, who schedules the closings?
The VP of operations in Atlanta will coordinate all closings. If the closing is in a territory we currently do not have a presence in she will negotiate with the closing attorneys and/or escrow companies rates and procedures. Once we have the title report and a green light to move forward, she will coordinate with the closing entity and the client on a date and time that works for both parties.
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| 42. |
What happens if the bank is just stubborn, will not settle, and lawsuit goes to fruition, and the judge rules against Bella, even though he is wrong.
Bella deeds the home back to the homeowner, and the homeowner owes the original debt with interest over the years as well as back taxes over the years.
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| 43. |
Is the compensation for commercial deals different since the values are different from residential?
No. Compensation is the same for residential and commercial.
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| 44. |
Is there a penalty if the client buys back before the three years?
If client wants an option shorter than 3 years, they must negotiate that with Bella at the time of entering into the closing agreement.
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| 45. |
After property is rented/leased out, who is responsible for the maintenance if the A/C is broken or there is a leak on the roof?
The tenant will be responsible for all repairs due to the fact they are leasing their property back for approximately 50% of mortgage payment. However, for larger repairs or home improvements to the property that are approved in advance by Bella Homes, they will receive a credit for the amount paid in repairs or improvements at the time they repurchase their home.
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| 46. |
What happens to the homeowners insurance and will delinquent taxes be brought current by Bella?
Bella Homes does not maintain an insurance policy for homes that are upside down in equity. However, the mortgage companies put insurance on all their mortgages once the homeowner stops making payments, which goes onto the principal balance of the mortgage. It does not make sense for Bella Homes to carry a separate policy because it would be double insured. When the mortgage company puts a policy on the house they will send a copy to the homeowner, but it could take 60 to 90 days. The homeowner would need to apply renters insurance to insure their personal belongings. Delinquent taxes will not be brought current by Bella, unless required by state law. The taxes will be settled by Bella Homes at the time it purchases the mortgage from the lender.
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| 47. |
How long has Bella Homes LLC been in business?
Since April 2010. Bella is a subsidiary of Diamond and Associates which has been around 19 years in the financial services and real estate industry.
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| 48. |
How many completed transactions has Bella Homes done?
Bella Homes is a privately owned company - no data can be disclosed. However, Bella has a goal of reaching ownership of 10,000 homes in next 3 years.
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| 49. |
Can I sublease my property?
Yes you can sublease your property with permission from Bella.
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| 50. |
Can the Bella Homes program be compared to a traditional rental program?
Our program cannot be compared to a traditional rental program because of the benefits we offer to the homeowner. Our program allows the homeowner to stay in their home. Our program prevents the homeowner from facing a deficiency judgment. Our program offers a 60% credit of rent payments at closing (so a monthly rent payment of $3150 calculates to $1890).
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| 51. |
Does Bella Homes have reference letters from our clients?
Yes, and some can be found on the website.
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| 52. |
What is the Foreclosure Act of 2009?
This protects tenants from eviction because of foreclosure on the properties they are renting for the term of the lease. However this law does not allow for the homeowner to deed their home over to a friend or family member and then lease it back from that person. In this case the bank most likely would be able to evict. The sale must be a Bona fide sale to a real company like Bella Homes.
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| 53. |
Is there any recourse the client’s second mortgage holder may have against them during this process?
Lenders want to mitigate their losses when dealing with defaulted mortgages. One of the documents the client signs at the Bella Homes’ closing gives Bella Homes authorization to speak to and negotiate on the clients behalf with the mortgage company. Once that document has been sent to the mortgage company they can no longer harass the client. In the event they contact the client once this document has been filed, they can be fined. In the event the second mortgage holder files a lawsuit against the tenant (rare), Bella will defend the tenant in that action.
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| 54. |
What is an example of one of the strategies Bella Homes uses?
One of the steps we take with each file is to have a forensic review conducted of the client’s mortgage documents. Once this has been completed and fraud has been found, we will file a Temporary Restraining Order (TRO). At the time the TRO is filed, the bank can no longer collect on an illegal mortgage and the TRO stops all collection activity. If the mortgage is found to be illegal, we can get the derogatory taken away from the clients credit report. If the lender attempts to foreclose or take any action against the tenant, then Bella can take legal action against the lender.
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| 55. |
I am upside down on the mortgage with perfect credit. Can Bella Homes determine PRIOR to signing the Bella Homes agreement, if my loan documents are such that a contested strategy would have a good chance of success? If not, I could lose my house and destroy my credit as well.
Bella Homes is unable to determine prior to signing and closing whether or not the loan documents are legal and can be contested due to the fact that Bella Homes does not have or obtain loan documents from a prospective client prior to closing. The due diligence and legal review in that regard is expensive and Bella Homes will not go through that process until the file has closed. What we recommend is for a Homeowner whose house is upside down but has good credit and wants to keep the home and their good credit is the following. They become a Bella Homes client and after we close we will move immediately to draft a lawsuit and file that lawsuit with the court, asking the court to issue a TRO prohibiting the lender from foreclosing and putting a derogatory on their credit report. However, keep in mind that there is no guarantee that the court will do that. But, if the mortgage is illegal that will eventually be decided and any derogatory will be then removed from their report. The homeowner should not be in jeopardy of losing the property because there will be a lease on the property which will keep them protected. The bank has to honor the lease and due to the fact that banks are not interested in becoming landlords, Bella Homes will still continue to pursue to purchase that mortgage from the lender and once it is purchased reclassify the status on the credit report. Bella Homes will also defend any challenges that a lender may decide to challenge on the lease. However to this date this has not happened with the banks.
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| 56. |
When the home is sold and the original loan is resolved for less than the amount due, is there a document waiving the deficiency judgment from the lender?
When the lender sells your loan at a discount, they are waiving their rights to any deficiency and therefore can't come after you for any deficiency. At the time that Bella Homes purchases the mortgage, there cannot be a deficiency judgment because the bank has the right to sell the mortgage, which is an asset. If they decide to sell this mortgage without the consent or agreement of the party on the mortgage, then the party on the mortgage cannot be liable for a deficiency because they are not involved in that agreement. You see deficiency judgments happen quite often in a short sale because the homeowner, who is also on the mortgage, is agreeing to sell the property for less than the mortgage amount. Therefore unless waived you will typically receive a deficiency judgment. Most lenders will not waive that issue, and keep in mind that after Bella Homes buys that mortgage they will reclassify it on their credit file as zero balance and paid as agreed. By Bella Homes purchasing that mortgage they are taking ownership of that document which will eventually be turned over to the homeowner marked zero balance. Also, at the time that Bella Homes does purchase the mortgage it will obtain a letter from the lender that they cannot, and will not serve a deficiency judgment.
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| 57. |
What is the consideration to the owner during the Bella Homes closing?
At the time of the closing, the seller receives various types of consideration. The first, is that Bella enters into a lease agreement with the seller, and that lease agreement gives the seller the exclusive right to use and posses the house throughout the course of the lease. The seller also receives as additional consideration a credit toward ultimate purchase of the house (60% of all lease payments made). Even more important than the lease agreement is the option agreement that is signed by Bella and the seller at closing. The option agreement gives the seller the exclusive right to purchase a property at the end of the 3 yr period of time. This is a very strong property right that accrues to the seller. The option agreement is not only signed as a legal and enforceable contract at the time of closing, but a memorandum of that option agreement is recorded in the court house records along with the deed.
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| 58. |
What happens if I miss any lease payments?
If as a tenant you miss some payments as part of the rental agreement, you are technically in default of the lease. However, Bella will send regular notices if you are behind, and will give opportunity to make up those lease payments. More importantly, if you are behind on your lease payments, you would be losing money that would otherwise be applied toward the purchase of the house 3 years later. So it's important to keep those lease payments current.
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| 59. |
What if I can't afford my lease payments anymore?
Bella has a couple of options. Under the lease agreement, they could file for an eviction (has never done this to date - because the purpose it to keep you in your house). They could also unwind the transaction with you and simply deed the house back to you.
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| 60. |
Why are the appliances and fixtures sold with the house.
Because they are normally considered to be part of the house and are included in the purchase price.
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| 61. |
There is a time limit on my pre-sale. Why is this?
Like in any contract the pre-sale agreement has a time limit within which the parties have to come together, have a meeting of the minds and consummate the transaction.
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| 62. |
If I don't sign the pre-sale agreement, do I ever have another chance to join the program?
In most cases the answer is no. However, in some circumstances Bella may reconsider allowing you back into the program.
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| 63. |
When can I see the closing documents?
Bella's closing docs are available for you to review at least 2-3 days prior to closing.
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| 64. |
What are the methods of making my rent payments to Bella Homes?
You can make your rent payments to Bella Homes by using a personal check, cashier's check, bank draft or wire.
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| 65. |
Is there a credit or background check to get into the program?
Absolutely no credit or background check to get into the Bella program. As long as they can afford to pay a minimum of $1000 rent, and their house meets our program requirements, then they will be considered.
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| 66. |
If I have bad credit, can I still buy my house back in three years?
Yes, you can buy your house back at the end of 3 years, even if you have bad credit. However, bad credit may affect the cost of any loan you get to buy back the house.
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| 67. |
Why does rent increase ten percent per year for years 1-3, and five percent years 4-7?
It is a standard practice in the rental business.
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| 68. |
How fast can I get into the Bella program?
Typically you can get into the Bella program with 7-10 days after you have signed the pre-sale agreement.
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| 69. |
Where does the closing take place?
As client, you have the option to have the closing take place, at your home, your business, or an attorney's office if you prefer.
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| 70. |
Are there any fees included in my closing cost?
Bella Homes will be responsible for paying the costs of the closing attorney, and all costs of the closing. However, if the client decides to retain their own lawyer for the closing, then the client would pay the costs for that attorney.
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| 71. |
Is the amount due at closing on my presale agreement the exact amount I will be paying at closing?
The presale agreement is a very close estimate of what you will be paying at closing. The only variation you may see is going to be based upon the day you close during the month, because the 1st month's rent is prorated.
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| 72. |
When is my deed recorded?
After closing the deed you have signed to convey ownership to to Bella will be recorded with 15-30 days following the date of closing. That will also be the date on which the Memorandum of Option to Purchase will be recorded as well.
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| 73. |
Can I give my exclusive right to re-purchase to one of my kids?
Yes, your rights to repurchase the house under the option agreement can be transferred to a family member.
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| 74. |
Who takes care of maintenance, or any repairs that need to be done on my property?
Each home is leased to the tenant on as-is basis. Tenant is typically responsible for any repairs that need to be made. However, if the tenant makes any repairs that run more than $1000, and reports those costs to Bella, Bella will consider that a capital improvement in the home, and at the time the house is resold to the tenant, the tenant will get credit for that expense off the sales price.
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| 75. |
Can I file a bankruptcy after I have entered into the Bella program?
Yes you can. However, Bella recommends you speak to a bankruptcy lawyer to see if it is advisable for you to do so.
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| 76. |
What day is my rent due?
Your first rental payment will be due on the 1st or 15th day of the month depending on which day you close.
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| 77. |
What do I do if I have a real estate listing on my home?
If you have a real estate listing agreement on your home prior to entering the Bella program, you will have to cancel that agreement before you join the Bella program, and we would refer you to the listing agreement to see exactly how you should go about doing that.
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