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Replies (6)
- Andrew Adams, "203K Specialist"
- Contributions:9349
Scams. google it and include equity stripping!
- Michael Emery, "MikeEmery"
- Contributions:7298
The lender that you are quoting is a huge proponent of lease back programs because.....wait for it....she does lease back loans.
Personally I think it's a great idea for everyone in the Twin Cities to buy a home because....wait for it....I sell homes in the Twin Cities.
Personally I think it's a great idea for everyone in the Twin Cities to buy a home because....wait for it....I sell homes in the Twin Cities.
- SoCal_Engr
- Contributions:5666
Google on "home equity leaseback scams". It's not pretty.
- Michael Emery, "MikeEmery"
- Contributions:7298
We've got a number of folks from the Twin Cities, former lenders and real estate agents who have recently changed their address to the Crossbar Motel after being convicted for doing leaseback programs, equity skimming and straw buyer sales.
The saddest thing was these scams were perpetrated in the poorest parts of our cities, causing a cascade effect of dropping home values and a renewal of the cycle of poverty and violence that has plagued these areas for years.
The saddest thing was these scams were perpetrated in the poorest parts of our cities, causing a cascade effect of dropping home values and a renewal of the cycle of poverty and violence that has plagued these areas for years.
- Thomas Osterman, "Thomas Osterman"
- Contributions:155
It can work, but often times this is a scam. It's important that you know who you are doing business with. Get as much information as you can about the private lender and ask for references to other buyers.
Nope, it is a bad idea. Think about it: if the bank was willing to modify your loan, they could today. If you get someone else to buy it, then buy it back, how does this look to the bank? Like you lied to get your home loan reduced. NOT worth the risk of going to jail for felony loan fraud.
There is nothing so earth shatteringly special about your home, so a few years from now, buy a different home.
The other big possibility, is that you pay a lease when you could live for free, and your home gets foreclosed on anyways...
There is nothing so earth shatteringly special about your home, so a few years from now, buy a different home.
The other big possibility, is that you pay a lease when you could live for free, and your home gets foreclosed on anyways...
Sale Leaseback Programs - Private Lenders - Does this work?
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- 5.0/5.0
- (18 reviews)
Contributions:82"You can do a Leaseback Program. A private lender gets with your current lender and pays cash for your house, low ball and below market value. He then rents the house to you. typically after 2 years you are in a good position to buy the house back from him at the low, current value and get into a conforming loan. It works."
I was hoping some of the lenders out there could elaborate on these programs and advise if there are any they are aware of in NC.
Have a great day!
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