Legal? L/O back to seller? - Posted by David (CA)

Posted by Nate(DC) on July 16, 2001 at 14:43:53:

nt

Legal? L/O back to seller? - Posted by David (CA)

Posted by David (CA) on July 15, 2001 at 19:26:27:

Has anyone here bought a property from a seller (in foreclosure) and then allowed them to stay in it? Did you L/O it to them? Is this legal?

Thanks,

David

Re: Look at this poor guy - Posted by emerson

Posted by emerson on July 16, 2001 at 11:59:31:

http:www.creonline.com/wwwboard/messages/18013.html

This is a post by Bill Gatten relating a story
about an investor who got burnt badly by just what you are suggesting David.

emerson

Re:It’s not rather it’s legal or not, it’s… - Posted by Lori Samson

Posted by Lori Samson on July 15, 2001 at 22:33:01:

The fact that if they lost the house once you are likely to have problems with them! I wouldn’t even let them stay a day beyond what the law allows or you could have real trouble with them. They aren’t likely to break any patterns in their life just because you help them. The mortgage company tried working with them for months before they forclosed!

Lori

Re: Legal? L/O back to seller? - Posted by Nate(DC)

Posted by Nate(DC) on July 15, 2001 at 21:20:30:

David,

I am not in California and most of what I know about this subject is second hand info from others on the board. But what I have picked up is the following:

IF YOU’RE IN CALIFORNIA, DON’T EVEN THINK ABOUT DOING THIS TYPE OF TRANSACTION.

Cal apparently has some special law regulating “foreclosure consultants”. If you do this type of deal you are likely to be deemed a “foreclosure consultant” and your deal could be unwound by the state at great expense to you.

I wish someone here could post a concrete example, possibly from their own experience?

NT

Re: Legal? L/O back to seller? - Posted by J. CA

Posted by J. CA on July 15, 2001 at 20:56:47:

AKA Sale-Leaseback.

Legal? Well let’s think about it… what could be illegal about renting a property you own? Who cares who you’re renting to?

Just be sure to check them out well… if they couldn’t make their mortgage payments, how will they make their rent?