High Equity Foreclosure

[Jorge Cordova]

Does anyone have any experience with high equity foreclosure? Purchasing the property, keeping the owner in their home, and offering them option of a buy back.

[Ron S.]

Umm...all things being equal, if you purchase a property at foreclosure auction, you can do with it, whatever you want to do. It's yours. What equity there may be between the auction price and the debt you bid against, is only relevant to you.

My personal experience though is, absent any extraordinary circumstance, usually, previous owners do not make the best tenants. They didn't pay their note, you are risking they are going to pay you. I get that you have that risk with any tenant but its amplified with the emotional connection to the property with having the previous owners as tenants/future buy back owner.