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Scott: Thank you for joining us today. Again continuing our continuing series of financial schemes. Today we’re going to talk about Lease Buy Backs relative to your house. Now essentially this program works If someone falls behind on their mortgage and they’re trying to avoid foreclosure, usual what happen is a an investor will popped in and step in and offer to buy your house from you and take over the payments while you recover and then at later point in time you can buy the house back from him. You could remain in the property, you pay him rent or her rent while you’re in the property and then when the time is right you buy it back.
The problem is as you buy it back at a much higher price. For example, let’s say you signed over your property to some of the offers to be an investor for you and start paying rent at eight hundred, nine hundred or what are the numbers per month. And you sold the property to him for let’s say fifty thousand dollars and it’s all in paper. Turn around you make a lease payments, your financial storm has passed and essentially you’re now back in the position where you can now buy the house back from him. What ends up happening is the investor has no problem and he will offer you a price to buy your own house back that you’ve residing all this time for a half the price.
Speaker 2: Hear ye, hear ye. Shut the fuck up.
Scott: [Oh my Lord 0:01:25]
Speaker 2: Not me the scroll. You must listen to it. Pity on you.
Scott: Okay, so as I was saying, we’ve list … You signed over your property to the investor and essentially once your financial storm has passed you then off direct to investor to purchase the property your own property back from them, usually at substantially higher price. Now if you have the cash for it you have to go and try get a loan for financing. If you can’t get a loan for financing then the investor eventually just say, well I’m sorry you can’t buy the property back and they eventually sell the property for underneath you or they rent it to somebody else or even worse.
Speaker 2: They steal your house.
Scott: They steal your house. And even worse if you’re making rent payments some of the things that they do is they don’t pay the mortgage for you, they just take your money and run. That’s it, that’s quick money every month.
Speaker 2: These people.
Scott: It’s amazing. It’s amazing. In any event if you’re in financial trouble especially when it comes to your house, your mortgage definitely, absolutely, positively at least talk to your mortgage company directly as to what options are available to you I guess.
Speaker 2: It’s like a free style battle.
Scott: Of what?
Speaker 2: Of mortgages, okay ready? Come on you go first.
Scott: Well I’m waiting for you come on let’s have it.
Speaker 2: Finances, finances. Pies are like pizzas. You know what I mean? Chicken ass. All right whatever. Go ahead.
Scott: Okay.
Speaker 2: Bad finances. They steal your house.
Scott: They steal your house, they take your cash.
Speaker 2: And then how do you prevent it?
Scott: Well, you can prevent it as you talk to your … Ideally talk to your mortgage company for the investment troubles. And if there’s no way to work on any with your mortgage company then unfortunately it’s going to an issue were you trying downsize and sold the property. If you got everything in your property you can get some cash and you can try and start over. If you don’t have enough in your property there’s different method to try and get rid of the property and mitigate the damage of those your financial life. So you can recover and yet to fight another day as they say.
Speaker 2: Yeah.
Scott: Yeah.
Speaker 2: I feel bad for broke people. They steal everything. I’m never going to be broke again.
Scott: Okay, by being incarcerated.
Speaker 2: Never. it’s not funny. Don’t laugh at me.
Scott: I’m not laughing at you, I’m laughing with you.
Speaker 2: Okay.
Scott: In any event the bottom line is if you’re in financial trouble don’t just signed over your house to any unexpected person who comes in. They’re not going to pay your mortgage. They’re not going to give you a deal buying your own house back. Talk to your mortgage company. If you can’t recover your mortgage company then try and make arrangements to get the property sold and try recoup as much cash from the equity of your house as you can so that you can start over. With that, I’m Scott Tennell with DCC a Financial Freedom Community.
Speaker 2: It’s never too late to start over. Never.
Scott: No. never. I think I’m going to start over right now.
