Reselling back to the would be foreclosed party

[Mark Enriquez]

Is it an option to offer to purchase a distressed property from someone in pre-foreclosure, and letting them stay in the house to rent for a year then sell back to them? 

To Clarify:

• I'd buy the house from the occupant who is under foreclosure
• After the sale, I'd rent to the-would-have-been-foreclosed party for the period of a year (a year in general, could be longer) then give them an offer to purchase the home back?

**I wouldn't try to rob them blind on the resale. I'd of course sell back at a reasonable price. 

I'm not sure if there are laws against this type of transaction. I don't see how it would be terribly unlawful. I think lenders would have the biggest beef with it. 

I don't have anything like this in the works, but I would try it out if it were not unlawful or unethical. 

thanks,

mark