Can't get a straight answer

**sheraline** · 09-26-2009, 07:47 AM

Hi all,

I can't seem to get a consistent straight answer on this for the life of me and really need to know.

I am looking to find out if it is or is not legal for someone to purchase my house that is in foreclosure, and rent it back to me.

It would not interfere with the banks foreclosure process and we would still end up in bankruptcy. The bank would still get the same as if any other person bought it as a foreclosure. And it would be just as if any other person was renting it from the buyer.

Does anyone actually know the laws concerning this and not just what they've "heard"?

Thanks!

Sheraline Lawles

**Greg** · 09-27-2009, 02:02 PM

It depends on the loan they use to buy the house. If the loan is for an owner occupied house then the buyer would be required to live in it. If the buyer gets an investor loan then they can rent it out to anybody they want, including you.

If the buyer uses cash to buy the house then it is no body's business what they do with it.

**Hollywood Landlord** · 09-27-2009, 06:35 PM

Greg is correct.

If they pay cash or don't apply for a loan that requires owner occupancy (rates will typically be higher), then they can rent to you. No one is going to care.

This is actually a strategy used by a lot of people when they try to purchase pre-foreclosures... they take over the payments from the owner about to be foreclosed on and turn around and rent it to them.

**VacantHomeIns** · 10-02-2009, 06:52 AM

I can see no reason in the world why this would not be perfectly legal. Once the new buyer comes in, they can do anything they want. If they want to make "Neverland East" and hand out Michael Jackson Gloves to the cars that pass buy, they could !