was just reading up on “sale Lease backs”. It seems that many judges are cracking down on such an arrangement, especially if done with a homeowner facing foreclosure.
It is my understanding that judges have nulled and voided such transactions after being convinced by the homeowner that he was misled at the signing of the contract. It seems that there have been cases in which the judge has reverted the purchase into a loan transferred title back to original owner and considered the purchase price a loan which was to be paid back in the form of a mortgage, by the homeowner, to the investor.
My first question is : 1) Has anyone heard of such a thing before.
2) If this is true, what effect will this have on investors doing Leasebacks 3) What can an investo do to protect himself against having his purchase nullified?
Any insight into this would be appreciated.