Is there anyway to buy properties from people in foreclosure and rent them back to the last home owner and 100% protect yourself? i heard that sometime if the last owner protest that it was a loan sometimes the courts interpret it as a disguised loan? Any surefire way not to have this technique come back to bite me?
Thanks Tommy
Howdy Shaamrock:
A lot of foreclosure investors will tell you the only way to protect yourself is not to do it at all. Get the deed and the keys and give them very little cash until the house is vacant and clean. There are no 100% guarantees in REI and if you are looking for that then you are in the wrong business. There are only a few 100% guarantees in life and two are death and taxes. It is all a calculated risk. I have never leased a pre-foreclosure back to the seller. If they had money to give to as extra security they would not be in foreclosure. There are always exceptions but if the reason they are in default was long term it is extremely hard to recover. I know of no sure fire way to protect yourself from them defaulting again once you own it or even worse and getting you tangled up in a deceptive trade lawsuit where treble damages are possibly involved. Man am I negative this morning, could not sleep. I may be more positive about this tomorrow but I doubt it.
LOL with it and hope I did not scare you out of REI all together.