Foreclosure 'rescue' scams? short sale? Robert Allen? Real estate seminar?
Question:
Answer:
The concept of doing short sales and sale-leaseback or sale-buyback deals is not illegal in itself. The illegality comes in how some investors proceed with the deals.
Real estate investors do deals like this all the time, whether it's to help families with poor credit or to generate income for their own portfolio, or whatever. Owning a property and leasing it to someone with a valid contract is completely legitimate and legal and happens every day.
The problem comes with investors who arrange deals that are most definitely not in the clients' best interest. This usually includes taking a lot of equity as a fee for doing the deal, or setting up a payment that is too high for the rentors/buyers to pay. Then the deal can be qualified as a loan and thrown out in court, because no one is legally allowed to give a loan to someone knowing that they can not pay it back.
So make sure that deals you work on are legal and the clients are able to make the payments, based on their current income. You can't predict if they'll lose a job or face medical problems in the future, but you can ask for income documents that will prove they bring in enough money to make the buyback payment without using all of their monthly income.
Sale-leasebacks with homeowners in foreclosure is just one option that can be used to stop foreclosure, and, with any solution, the details are the most important.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
you could have spent 250 and got a real estate license.
It's not the governments job to stop you from wasting your money on get rich quick schemes.
The only safe way to do foreclosures is to remove intimidation and false tricks against the owners. That means go to the auctions and buy it rather than try to trick the owners with leases, buybacks, etc. In some states it is illegal. You should consult with a real estate attorney to see which tactics are illegal in your area.
Also please take a look at this book below on how to do foreclosures the safe way rather than the illegal way.
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