Buy Back Agreement In Foreclosure Rescue Sale Leaseback Deals To Be Presumed An Equitable Mortgage, Says Proposed Florida Statute

One of the key provisions in the recently proposed Florida law intended to regulate foreclosure rescue transactions can be found in Section 6 of both Florida House Bill 643 and Senate Bill 992:

• Rebuttable presumption.--Any foreclosure-rescue transaction involving a lease option or other repurchase agreement creates a rebuttable presumption that the transaction is a loan transaction and the conveyance from the homeowner to the equity purchaser is a mortgage.

For more, see HB 643 and SB 992.

Editor's Note:

If the Florida legislature passes a law containing this provision, it will presumably become much easier to go after foreclosure rescue operators in Florida, both in civil and criminal cases, on charges of usury. Go here for more on foreclosure rescue and usury in Florida.