Giving L/O To The Person Being Foreclosed...would You?
About to negotiate a SS and (if successful), considering L/O the house back to its current (soon-to-be-previous) owner. This lets the couple stay in "their house" and saves them from foreclosure, plus allows me to make a decent ROI.
Would you do/recommend this?
The couple is in foreclosure because of brief unemployment, and can now make the payments I require to make the L/O worthwhile to me. They just can't come up with the lump sum needed to reinstate.
Just found this site...great stuff!
Jules
i don't allow the previous owners to stay. they couldn't pay their mort. and normally the l/o payment is higher and i don't feel they will be able to pay and keep current...... but hey thats just me......km
Don't. For a short sale to work, you (or the owner) will have to affirmatively represent they are surrending ownership AND possession to a third party buyer. Plus you can run afoul of your state's usury laws, since the equity conversion can be construed as interest at an unlawful rate.
Either plan on getting the owner out, or try and help the owner with a mortgage modification or forebearance--won't necessarily get you paid but can get you a bunch of karma points and a person who will refer to you for life.