Posted by colvegas on December 29, 2006 at 14:36:58:
Keith,
Basically, you are allowing the homeowner to stay in the property as you negotiate with the lender and pay back the required arrearances a risker deal unless you know how to do it due to the homeowner can claim duress and in most cases to avoid any illegal action on your part you will need to actually lower his monthly payment obligation until he gets back on his/her feet.Kind of like a lease back setup…
I do not know all the legalites and no legal advice intended.
We use trust to do this to avoid taking title and we do lower the payments for min the first year I do not do them but I know a investor whom is an expert on these bailouts…
Good luck.