I see that some investors advertise that they stop foreclosure and the owner gets to “keep” or stay in the home. From my knowledge this involves purchasing the prop (or taking it subject 2) and leasing it back to the owner and they can buy it back for a higher price.
I’ve never been too crazy of this idea and wouldn’t want to be in the position where I had to explain it to a judge. I would think that any lawyer would be happy to take the owner/buyer tenant’ case in a court of law. If they couldn’t/didn’t pay the mortgage, why would they pay to rent their own home?
What am I missing here? Why are there no shortage of investors that are using this stragtegy. It would seem that you would be bound to run in trouble sooner or later (sooner). I’d love to hear from anyone that is doing lease-backs to the original owner.