# Is it halal to buy bad loans and foreclose on people's homes?

*Buying non-performing loans and foreclosing on borrowers*

- URL: https://muftiabulayth.org/r/51qevhjqnt4/s/8/
- Date: 2020-02-28 · Kind: question · Transcript tier: machine · Recording: Fadak between Fatima (r) & Abu Bakr (r) Detailed Overview | Mufti Abu Layth (30:52–31:30)
- Status: general teaching
- Watch from the start of the segment: https://www.youtube.com/watch?v=51Qevhjqnt4&t=1852s
- Recording page: https://muftiabulayth.org/r/51qevhjqnt4/

**Topics:** Riba, mortgages and loans

**Question as asked:** Is it permissible to purchase non-performing loans, turn them into performing ones, and foreclose on properties paid for by borrowers?

**Summary (not a quotation; machine-made, unchecked):** Buying property as a business is permissible in his view, but exploiting people who cannot pay and evicting them is oppression he is against.

**Checked position (checked by two independent reviews, not by the channel):** Mufti Abu Layth says he is against exploiting people who lack money by throwing them out of their homes.

**Evidence, his words at 30:52:** “I don't think it's fair to just kind of exploit people because they don't have money and to kind of chuck them out of their homes” (https://www.youtube.com/watch?v=51Qevhjqnt4&t=1852s)

## Longer summary

A question is read on whether it is permissible to purchase non-performing loans, turn them into performing ones, and foreclose on properties. Mufti Abu Layth says he holds that mortgages are not haram, referring to his detailed video, but says he is not sure he fully understands the question. If it means exploiting people who lack money and throwing them out of their homes, he is against that oppression; if it means buying property as a business, he feels it is permissible.

## Sources and names cited

- riba

## Transcript (machine tier, 30:52–31:30)

[30:13] says I can hurt Annabel mote she intends by what if you no longer alive by the time I finished these things and come after a few years and he says fatiah rebbekkah come to Abu Bakr and I do feel that you know he has his an amazing maqam in Islam radi allahu anhum jimmy on who people let's move on with that right so is it permissible to perform what to purchase loans and by turning them into performing ones and foreclosing properties are paid by borrowers look I do feel that the whole I've got a

[30:52] detailed video on interest and mortgages and I feel that these things mortgages and whatever are not Haram I've got a very lengthy video explaining it that said I'm not quite sure I fully understand this question call it but if it means kind of doing people over then I'm against that oppression and things I don't think it's fair to just kind of exploit people because they don't have money and to kind of chuck them out of their homes but if you mean just buying property and using it as business and buying more than I feel that that is permissible right so reincarnation I'd been asked yes reincarnation I don't believe in

## Cite

Mufti Abu Layth Archive, segment 51Qevhjqnt4/s/8. https://muftiabulayth.org/r/51qevhjqnt4/s/8/

Not a fatwa: these answers were given to specific people at specific times. Ask a qualified scholar about your own situation.