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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Forming partnership with person in foreclosure Posted by matt on August 01, 2003 at 11:47 AM Ward I know you recommend that we get the seller to move when we buy the house during a NOD. Does having a 'partnernship' buy the property and lease it back to the former homeowner offer any better protection against future claims the owner may have? For example: "The safer way to deal with someone in foreclosure is to buy him out and get him to leave. If a person is in serious financial trouble, chances are he will get into trouble again. Thus, you will end up with a messy eviction and a court battle with the tenant/former owner. If a homeowner insists on staying in the property, then simply lease it to him without an option to re-purchase. If the homeowner is not willing to be just a tenant and has significant equity in the property, offer a partnership arrangement wherein the partnership will own the property. Your contribution to the partnership is the money to cure the back payments due on the loan. The homeowner's contribution is the equity in his home. The partnership will lease the property to the former homeowner for market rent. If he defaults on the rent payments, the partnership evicts him. The former homeowner still has a partnership interest, but he does not have possession. At that point, you can buy him out of the partnership". Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Ward : I know you recommend that we get the seller to move when we buy the house during a NOD. : Does having a 'partnernship' buy the property and lease it back to the former homeowner offer any better protection against future claims the owner may have? : For example: : "The safer way to deal with someone in foreclosure is to buy him out and get him to leave. If a person is in serious financial trouble, chances are he will get into trouble again. Thus, you will end up with a messy eviction and a court battle with the tenant/former owner. If a homeowner insists on staying in the property, then simply lease it to him without an option to re-purchase. : If the homeowner is not willing to be just a tenant and has significant equity in the property, offer a partnership arrangement wherein the partnership will own the property. Your contribution to the partnership is the money to cure the back payments due on the loan. The homeowner's contribution is the equity in his home. The partnership will lease the property to the former homeowner for market rent. If he defaults on the rent payments, the partnership evicts him. The former homeowner still has a partnership interest, but he does not have possession. At that point, you can buy him out of the partnership". : 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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