Does anyone have any experience - good or bad - with approaching Lenders about Lease Optioning an REO?
I realize that this will be Lender/Property specific.
But, it seems to me that turning a non-performing asset into a performing asset would be a win-win.
john
I would think this would be fairly difficult for a larger bank. A community bank may allow this since they can make the final decision that is actually closer to the problem. Probably just depends on the area and property, and lender. In general, though, it would be a tough proposition for any lender to accept, since it ties up a lot of capital, and they are not in the rental business, treatment for income and taxes would be different, opens them up to unfamiliar liability (unfamiliar to their infrastructure), they have no system/support set up to handle such a transaction, etc.