Joe Kaiser's Helping Hand - Posted by Gary

Posted by William Bronchick on February 22, 2002 at 08:29:58:

I am not familiar with Kaiser’s “helping hand” program, but sale-leasebacks in foreclosure are generally ill-advised. Sale-leasebacks, especially with an option to purchase are often recharacterized as disguised loans.

Read this article for more info:
http://www.legalwiz.com/articles/foreclosure-crim.htm

Also, you must make sure you comply with CA’s 5-day right of recission for owners in foreclosure.

Joe Kaiser’s Helping Hand - Posted by Gary

Posted by Gary on February 20, 2002 at 23:59:37:

I’ve got a question I’m hoping I can get some clarification on.

I’m in CA and wish to put together deals similar to Joe Kaiser’s Helping Hand Deal. Basically, it goes like this; distressed property owner needs to reinstate loan. I offer to make up all back payments and reinstate loan. In return, property is deeded to trust, and I retain 100% beneficial interest. I lease back property to old owner, and give old owner a seperate option to purchase property back for amount I loaned plus interest plus any additional equity property has accumulated during the lease period. If old owner doesn’t perform on lease, old owner loses option to buy back. My questions are: 1) Is this legal? 2) Does structuring a transaction like this put me in a position of sure litigation? 3) What would you suggest where I can find the doc’s to put this together. 4) Would you say this is an unethical transaction? TIA

Gary