Is Lease Optioning To The Original Homeowner A Mistake?
Here is the situation…..
A man and wife are getting divorced. The man wants to stay in the house; she wants her half of the equity and to leave. The man can’t get a loan even though there is plenty of equity. I intend to buy the house, split the man’s existing equity and take a half of future equity. In exchange, I will let the man remain, on a lease option basis.
I have the terms of this thing knocked out okay, but someone thought putting the original homeowner (though he was never on title, don’t ask me why) back in the house on a lease option might be considered usury. The man is begging me to do this for him, but I may not if it could result in trouble down the line.
This will be taking place in California. Any thoughts?
Thanks in advance for your thoughtful responses. Brian
I am sorry but I am not following you.