Need Help With Purchase/Lease Option
I have a homeowner in trouble. I will purchase the property and lease it back to them for 1 to 2 years. This is my second deal. Do any seasoned investors have any feedback for me. Please contact me at **Please See My Profile** 
NewPlayer,
It all depends on what you mean by "trouble". If this homeowner is in financial difficulty and is in arrears to the point he is in jeopardy of foreclosure then you may want to consider if this is the way to go.
If the homeowner does not have the means to make the payments now, how will he/she have the means to make payments to you in a timely fashion?
Tell us more about the "trouble" the homeowner is experiencing.
[addsig]
As a result of problems (and now w newer law in MN) we no longer let previous owners stay in the home we buy. I know this looks like a great way to get income for a year or so without having to rehab the property, but unless you are offering them lower payments than the didn;t make before, you are really only setting yourself up to be their next victim.
If you feel you absolutely must offer this arrangement to them, consider helping them find a different rental, if you can;t do that, make sure you are obtaining MORE than adequate collateral/security deposit to protect yourself financially.
What do you need in the way of help?
I apologize for being vague. What I mean by trouble is: The homeowner was in a thirteen but could not keep up the payments until a few months ago. However it was too late to try to work something out with Chase. Chase Manahattan filed a notice of presentment dismissing the chap 13 and barring them from filing any bankruptcy for 180 days.
I still do not understand what you are looking for from us. I am assuming that if you buy the property that Chase gets paid off and goes away. Are there bankruptcy issues barring the sale to you? From what you said, the seller is not currently in bankruptcy. The only issue remaining is dealing with a financially unstable tenant if you lease it back. The conventional wisdom is not to lease back to sellers in financial trouble since there situation is likely not to change soon and you will have headaches collecting rent. I violated this wisdom and can write a book about the adventure. However, I was open to leasing since it was the only way I was going to get the property. The profit was very much worth the problems. You need to give us more as to what you are concerned about.
We knew it was pending. Has it already passed?
[addsig]
The law did pass but I believe a provision was put in that excludes lease/options with a term of 3yrs of less.