Pre-Foreclosure Deal Question

How about this:

Investor cures default in exchange for coming on title - leasing back property for a given timeframe. Allows tenants to buyout investor for difference in property value at time of default and value at end of leaseback term?

Comments(1)

  • bnorton30th March, 2005

    Depending on profit, it probably falls under the category of usury. Foreclosure bailouts with lease back is generally considered a loan in disguise. In your example, it is less disguised than in other situations. Since it generally deemed a loan, then they look at your profit margin. If it exceeds state lending guidelines, it is usury.

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