Homeowner profit incentive
Hi guys,
New to BP and loving all the content. As someone new to the USA and pre-foreclosures I was wondering if there was anything from a legislative perspective preventing potential investors from offering homeowners in the pre-foreclosure process a % of profits from a flip or wholesale in return for agreeing to hand of the deeds etc.
E.g. Bill is behind on mortgage payments and bank have started the foreclosure process. Investor approaches Bill to try and negotiate a short sale and tells Bill he intends to rehab said property and sell. As an incentive, he offers to give Bill 15% of net gains from rehab in return for handing over the deeds.
Is there anything ethically or legally wrong with this? I ask as the pre-foreclosure market appears to be very competitive and potentially a little saturated?
Thanks in advance