LEASE/BUYBACK
IM BUYING IT OUT RIGHT AND I CAN STILL BE SUED???????? I WORKED FOR MORTGAGE BROKER AND HE DID THIS ALL DAY IF YOU KNOW SOMETHING PLEASE SAY MORE
IM BUYING IT OUT RIGHT AND I CAN STILL BE SUED???????? I WORKED FOR MORTGAGE BROKER AND HE DID THIS ALL DAY IF YOU KNOW SOMETHING PLEASE SAY MORE
Yes, if you L/O back to seller. You can buy outright and have seller move and sell if for $470k, no problem. If you choose to L/O back to seller, than do what Lufos suggest. Make sure you get to know seller, counsel him when he falls behind, and if he still does and can't keep up w/ payments, sell prop and split the profits. Never L/O back to seller in hopes he defaults again.
Lets assume in your situation the default amount is $20k, you buy from him at $270k and let him stay, you keep the equity of $200k. The way it is seen, even if you bought outright, is you lend the seller $20k for him to stay in his prop. in exchange for $200k in equity. Thats a 1000% interest rate, usury.