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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Fair or Unfair? Posted by Ron M on January 04, 2002 at 6:08 PM Ward, What is your opinion of this? Owner is in default. Has a lot of equity and doesn't want to sell home. Buyer offers a solution. Buyer tells Owner he'll reinstate loan. Owner must deed property to Buyer. Buyer is now New Owner. New Owner will rent property to Old Owner. Old Owner gets a 5 year option to purchase back property from New Owner anytime, at the sale date market value plus any price appreciation, plus original costs to reinstate loan. Option is nullified if Old Owner doesn't make rental payments on time. Pro's for Old Homeowner? Gets a second chance, gets loan reinstated, gets to stay in home, and doesn't lose any of his current equity. Con's? If he doesn't keep up with his rental payments, he loses home and ALL of his equity. I imagine a good chunk of homeowners who get involved with this will wind up missing their rental obligation and losing their equity. So my two questions to you is... Is this legal in CA? Do you think it's an oppressive strategy? IE unfair? Follow Ups: Re: Safer to have the owner move on. Ward-CA- 7:17 AM, 01/06/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Ward, : What is your opinion of this? : Owner is in default. Has a lot of equity and doesn't want to sell home. : Buyer offers a solution. Buyer tells Owner he'll reinstate loan. Owner must deed property to Buyer. Buyer is now New Owner. New Owner will rent property to Old Owner. Old Owner gets a 5 year option to purchase back property from New Owner anytime, at the sale date market value plus any price appreciation, plus original costs to reinstate loan. : Option is nullified if Old Owner doesn't make rental payments on time. : Pro's for Old Homeowner? Gets a second chance, gets loan reinstated, gets to stay in home, and doesn't lose any of his current equity. : Con's? If he doesn't keep up with his rental payments, he loses home and ALL of his equity. : I imagine a good chunk of homeowners who get involved with this will wind up missing their rental obligation and losing their equity. : So my two questions to you is... : Is this legal in CA? : Do you think it's an oppressive strategy? IE unfair? Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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