Has anybody had experience with buying a home before the forclosure and doing a one or two year lease option back to the home owner?
I have been reading on it and there are two views on it. One is it works great. The other is it works terrible.
Anybody with experience in this area?
Thanks,
Joe
I would never lease it back to the prievious homeowner…if they couldn’t make the payments to the bank…why would you think they can make them to you? I’ve heard every excuse in the book…bottom line…they couldn’t afford the house…and they still can’t.
well then u can just throw them out and u have the house at a cheap price. am i missing something here?
I never just “throw them out”. I give them money to move on and find a place to live, I rent a truck and pay some guys to help them move…I help them find a place. That’s sure allot more than the bank is gonna do if they foreclose. The bank is going to evict them…have the sherrif come out and give them 3 days to vacate.
Leasing back to the current owners is considered a major NO NO in REI…however I feel sometimes there can be warrant reasons to do it. For instance the homeowner lost there job and was unemployeed for quite sometime but now has a good job making equal or more money when they paid on time and they just lost the house or fell to far behind with being unemployed or was seriouslly ill and out of work for a long period of time but back on there feet now…Otherwise forget it…and even with those circumstances you need to be careful.