foreclosures - Posted by stacey

Posted by Laure on March 05, 2000 at 20:47:07:

I underntand that in at least one case, that the judge called it a re-finance. Ask Bronchick !

Laure :slight_smile:

foreclosures - Posted by stacey

Posted by stacey on March 05, 2000 at 17:11:36:

is this legal? find foreclosure property-make
up back payments for homeowner. homeowner deeds
the property to me with an option to buy it back.
if he doesnt pay rent the option is null and void
and i evict.example 2 find foreclosure property-
make up back payments for homeowner. he deeds me
half ownership in property for bringing him current
we sign option agreement put in escrow with
ibsructions if he doesnt pay rent or is late he
option is void and hes 50% in the property is
transfered to investor. we evict or he can be a tenant. is this legal to do in a TRUST DEED STATE???

Re: foreclosures - Posted by John P S.FL

Posted by John P S.FL on March 05, 2000 at 22:15:35:

Why have them L/O property back? They went into foreclosure because they could not pay the mortgage, why would they be able to pay you on a L/O. I like to have the owner give me the deed and move. This is safer and cleaner.

John P.

Be Careful… - Posted by Bill K. (AZ)

Posted by Bill K. (AZ) on March 05, 2000 at 17:33:06:


Be careful with these strategies. I can’t put my finger on the source, but I read somewhere recently that an investor’s entire investment in a transaction, similar to the ones you describe, was set aside by court action. I don’t remember the exact details, but a California investor spent years paying on a home that his “tenant” never made payment one on. The former owner went to court crying “foul”, and the investor lost because the judge didn’t like the looks of the transaction…totally dismissing the fact that the former owner lived rent-free in this home for close to 3 years. The investor pumped in over $20K during that time, and had been looking at jail time for his role in the transaction…if I remember correctly. Maybe someone else knows the exact details.

Every time I ask about ways to keep the current owner of a foreclosure property in their home, the response I get is, “DON’T TRY! Get them out, and get the deed. You can try to be a Good Samaritan, but you’ll get burned more often than not.” Besides, remember that you’re doing them a favor by keeping a foreclosure off of their credit record. That’s all I’m willing to do for the guy/gal at this point.

I hope this helps.

Bill K. (AZ)