OfflineI know a property owner is underwater and wanted to get out. He is doing a short sale and willing to rent the property because his family doesn’t want to move. Can I buy this property and rent back to him? Can you do this in Cali.?
Thanks.
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You can buy it and rent it back. Do not know Cali law, unfamiliar if they have something in place to prevent that. Most short sales just prohibit the seller (owner in trouble) to receive cash back from the sale.
Best Regards,
Anita
(Licensed Realtor-Military Vet-9/11Vet)
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I know a family member that is in a pre foreclosure.And my uncle wants to negotiate a short sale and then wanted to rent it back to them. I think that is illegal in California. The property was already lost to them. So rented back to them might seem a little odd. That situation sounded familiar so i thought i give my advice if it helped.Good luck.
Thank you for your comments.
For me personal i would not rent back, they are emotionally attached to the property. And if they are financial trouble now how are they going to pay you. Just something to think about.
Randy
www.adeptpropertiesllc.com
I cant see how renting it out to them could be illegal.They are just tennants at that point,but check with your states laws. I know they cannot get any money out of the deal.
But would you want to take the chance that they will not fall behind in rent. I know if you get it at a ss price the mortgage will be cheaper but it is still a risk. Like Randy said ,they are emotionally attatched to the home.
what ever you want to call them are completely illegal! Most banks have language in their contracts that state that the homeowner will be vacating the property. Whether a state has a law does not matter. You and the seller will be signing bank paperwork that states they are vacating. Not to mention, if the homeowner can't make their mortgage payment then what makes you think their going to pay you on time. You are asking for a huge headache and a possible lawsuit. There are many people that are doing it, but it is unethical and doesn't make it right. Keep it simple and have them vacate the property upon closing. Hope this helps...
KimmyJ
Press on
www.tagteampropertiesllc.com
I agree with randy428 that not a good thing to do.
Good Luck
Angie
Angie
May each day get better
I have a relative whose house is in foreclosure and the bank is allowing them to do a short sale. I want to purchase the property but I've recently filed for bankruptcy and I'd like to know if it's possible to get some kind of financing under my name. If so, I need to know where to find a hard money lender to finance the property.
Thank you.