Feedback On Getting Deed And L/O Back To Prev Owner
Want some feedback on getting the deed from a delinquent homeowner, bringing the loan current, and then having the previous homeowner sign a lease with option to buy.
Homeowner has a lot of equity and does not want to let the house go. He can not qualify for a refi at this point. He does not have the money to bring the loan current.
39,000 loan payoff amount
2,800 to reinstate
75,000 FMV
Thanks
Brenda
What other route could I take?
I guess I could take a second for 2,800 and the allowable interest and have a balloon.
Anybody have any other ideas or suggestions?
Brenda
Just brain storming ....
Wht if I sign a L/O with a relative or friend, and the L/O is assignable?
It seems like that should be legit. People in default sign over their house everyday, and investors make money off of the situation every day. Know that I am trying to justify or rationalize, but still brainstorming ....
Brenda
Brenda,
I have heard that selling to another investor would circumvent usury, but I still think it is dicey. I know you want to help them save their home, and you can do that if you negotiate a forebearance on their behalf, and you can get paid for that. But if they cannot make the mortgage payments they will be back where they are today. Now, they probably will call you first if that happens. Other than that, you need to help them out of their house.
Buy the note from the bank, then do a loan modification anyway you want since you are the new bank.
Have them give you a deed in lieu of foreclosure to hold in escrow in case they do not perform on the note.
Saw something like this in Colorado last year. A guy named Ryan S. did just what you are talking about. Most people defaulted on their payments to him and he took the houses back. The "owners" went to court, which agreed they had been hoodwinked. He really bit the dust financially - the fine was enormous.
Check out this article:
How to Structure Sale-Leaseback
Arrangements to Avoid Recharacterization
by William Bronchick, Esq.
google it
Check out this article:
How to Structure Sale-Leaseback
Arrangements to Avoid Recharacterization
by William Bronchick, Esq.
google it