Home Buying
Avoid Foreclosure
Equity Skimming or Leasebacks
One of the less scrupulous methods for “helping” homeowners stay in their homes is equity skimming or leaseback programs. The individual offering to help you out will offer to catch you up on your payments and take them over for a period of time while you continue to “rent” the home.
The contract, however, usually contains strict provisions so that if you are one day late with your monthly payment, for example, the home is no longer yours. Or you may have actually signed over your home to that buyer with the opportunity to buy it back at terms you’ll never be able to afford. Either way, you lose.
Be very careful if someone offers you an easy way out of your foreclosure situation. When you are in foreclosure, you’re a high-risk borrower. Your lender won’t let you off the hook easily, why would someone else?
