Posted by Craig on September 26, 2004 at 11:23:13:
If you can close before the NOD is recorded, my lawyer tells me it’s not usury.
Is this usary in CA? - Posted by tuler
Posted by tuler on September 09, 2004 at 01:20:06:
If an investor buys a home from someone and leases it back with an option to buy, for part of the equity, is this usary in the state of CA? If so, is there anyway to structure the deal without being in violation of usary laws?
Re: Is this usary in CA? - Posted by Craig
Posted by Craig on September 26, 2004 at 11:11:49:
Spoke to my lawyer about this, it is usurious to give an option to seller in CA regardless of whether or not they stay in the home. Case law. Triple damages!
Probably not usury IF… - Posted by John Merchant
Posted by John Merchant on September 09, 2004 at 12:41:41:
Anyone who’s briefing this, will really have to brief the CA court decisions to see if it is considered usury (as barely concealed illegal loan back to the homeowner)so it’s not an easy question to quickly answer.
In my State of WA, there is a court decision or two that do say such a deal WAS usury, as it was really a badly concealed usurious loan to a homeowner for more than WA’s 12% homeowner loan rate max.
The key to doing this lawfully, seems to be doing this type of deal ONLY with the seller NOT staying in the house, with the REI truly buying the SFR and giving the seller ONLY an option to buy back…but, repeat, NOT allowing the SFR occuupant to stay in the house.
Sorry, I meant usury, not usary - Posted by tuler
Posted by tuler on September 09, 2004 at 01:30:08:
It’s late…