Do you ever sell deeds back to homeowners?

I am trying to develop a packet to send to former owners of property that I have purchased at auction. I am giving them an opportunity to buy the deed back from me for a reasonable amount. I will even finance that amount for them.

I was wondering if anyone has any documents or templates that I could work from to get an idea to start with. I am having trouble coming up with enough paperwork to make it look like I am a legitimate operation, and not some scammer. Any ideas?

Edited: 06/26/2010 at 10:22AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
14 Awards

Icon_minipost Nov 03 '09, 04:18 AM

Here's the fundamental problem with what you suggest: The former owner was unable to afford that house before (otherwise they would not have lost it), so what do you think has changed so that they can now afford to get that house from you? Unless their financial situation somehow improved, or unless you are looking to operate as a non-profit ...

Edited: 06/26/2010 at 10:22AM

Dan Inc

Real Estate Investor · Raleigh, North Carolina

133 posts
489 Influence
1 Award

Icon_minipost Nov 03 '09, 05:09 AM

Actually, that's not necessarily the case. I am getting the property through other types of foreclosure that don't necessarily relate to their ability to pay.

Edited: 06/26/2010 at 10:22AM

Jose R.

Real Estate Investor · Kahuku, Hawaii

148 posts
591 Influence
2 Awards

Icon_minipost Nov 03 '09, 05:56 AM

Absolutely not! I NEVER sell the property back to an owner, thats how investors find themselves on CNN!

With all the media attention about how "innocent" people are getting ripped of nowadays, its very easy to believe that an investor took advantage of some poor unsuspecting homeowner.

Move on, find a new buyer!

Edited: 06/26/2010 at 10:22AM

Dan Inc

Real Estate Investor · Raleigh, North Carolina

133 posts
489 Influence
1 Award

Icon_minipost Nov 03 '09, 10:12 AM

Originally posted by Jose Rodriguez

Absolutely not! I NEVER sell the property back to an owner, thats how investors find themselves on CNN!

With all the media attention about how "innocent" people are getting ripped of nowadays, its very easy to believe that an investor took advantage of some poor unsuspecting homeowner.

Move on, find a new buyer!

I'm talking about after a foreclosure sale, not buying in pre-foreclosure. It's the pre-foreclosure buyers that do sale-leasebacks that are the ones getting the negative attention. I think that you are confusing the two scenarios.

Edit: I have no legal fear of selling a deed back to a homeowner after I've purchased it legally at a foreclosure auction.

Edited: 06/26/2010 at 10:22AM by Dan Inc

Jose R.

Real Estate Investor · Kahuku, Hawaii

148 posts
591 Influence
2 Awards

Icon_minipost Nov 06 '09, 12:09 AM

Originally posted by Dan Inc

Originally posted by Jose Rodriguez
Absolutely not! I NEVER sell the property back to an owner, thats how investors find themselves on CNN!

With all the media attention about how "innocent" people are getting ripped of nowadays, its very easy to believe that an investor took advantage of some poor unsuspecting homeowner.

Move on, find a new buyer!

I'm talking about after a foreclosure sale, not buying in pre-foreclosure. It's the pre-foreclosure buyers that do sale-leasebacks that are the ones getting the negative attention. I think that you are confusing the two scenarios.

Edit: I have no legal fear of selling a deed back to a homeowner after I've purchased it legally at a foreclosure auction.

If they couldn't pay their mortgage what makes you think their going to pay you? Are REAL buyers that hard to find in your area?

Edited: 06/26/2010 at 10:24AM

Ralph S.

Real Estate Investor

566 posts
5204 Influence
7 Awards

Icon_minipost Nov 06 '09, 12:34 AM

Originally posted by Dan Inc

Actually, that's not necessarily the case. I am getting the property through other types of foreclosure that don't necessarily relate to their ability to pay.

I'm really curious. What other type of foreclosure occurs when the owner hasn't already demonstrated that they do not have the ability to pay?

Edited: 06/26/2010 at 10:24AM

Dan Inc

Real Estate Investor · Raleigh, North Carolina

133 posts
489 Influence
1 Award

Icon_minipost Nov 06 '09, 12:52 AM

An execution sale

Edited: 06/26/2010 at 10:24AM

Ralph S.

Real Estate Investor

566 posts
5204 Influence
7 Awards

Icon_minipost Nov 06 '09, 01:22 AM

Never heard it called an execution sale, but after looking it up in the NC statutes, it seems to be the equivalent of a Sheriffs sale, which is the sale following the default on a mortgage and judicial foreclosure!

I still can't connect the dots: A foreclosure where the previous owner has the ability to pay.

Edited: 06/26/2010 at 10:24AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
14 Awards

Icon_minipost Nov 06 '09, 03:25 AM

Ralph,

I'm with you on this one.

In PA there is a "Writ of Execution" that is obtained to proceed to the sheriff sale, so it sure sounds like one of those to me.

Some of the other types of repo I am aware of:
Tax deed sale (the owner did not pay taxes for some reason)
Confiscations by law enforcement (that would make former owner a participant in criminal activity - I say no need to deal with those types of people)

Words I once heard: "When a homeowner is losing their property, one of two things has to change: their financial condition has to change for the better, or they have to change their address."

Edited: 06/26/2010 at 10:25AM

Jose R.

Real Estate Investor · Kahuku, Hawaii

148 posts
591 Influence
2 Awards

Icon_minipost Nov 06 '09, 03:37 AM

You guys must be really hurting for buyers.

Edited: 06/26/2010 at 10:25AM