Is It Unethical Or Illegal?
Is it unethical or illegal to purchase a home from a seller for $30k below appraisal, me get an investor loan, and then sell on a contract for deed back to the original seller, with a 2 year refi clause?
Why would you consider this? If this is an attempt at stopping a foreclosure, Don't do it. If they can't make the payments before you arrive to bail them out, what makes you so sure that they'll make them afterwards. Now it's your problem, and you really have problems getting them out of the property when it goes bad.
If you buy the property, make them move out. It's a much cleaner transaction, and they won't be able to make a case that you just loaned them the money, and are now being predatory.
Stay away,
Jeff
If your buy back is an option or a written document allowing the buy-back, you need to watch out for usury. If he is unhappy and hires an attorney, there will be a claim that this is a loan at usurious rates. Penalties are quite high.