I would use a Land Contract. I don’t think this transfers title in Kentucky. It’s also known as a Contract for Deed, or Agreement for Deed. If you go to uslegalforms.com you can look up these contracts and see what’s available for your state.
In California a Land Contract does transfer equitable interest to a buyer, so a judicial foreclosure is required regardless if the title has physically transferred to the buyer, or not. In this case there is “constructive delivery of the title” even if using a Land Contract. So I use a special promissory note that is not secured against the property, that allows me to enter judgment against the borrower without notice.
This note is against the seller himself. This arrangement gives me several advantages including petitioning the court for a judgment award on the entire balance of the note; and put the entire balance of the note to collection.
This means if the sale price was say (using an extreme example), $500,000, and the seller put up say $25,000, he still owes me $475,000. I put $475,000 to collection, and trust me, that will put his credit on HOLD.
NOTE: You can put the note to collection even if you don’t have a judgment. It’s up to the debtor to fight off the collection activity. And most don’t know what to do with it, and just damage themselves all the more.
Before that, I attempt to negotiate a mutually acceptable solution. I might outline at least the following options:
a. Offer to tear up the promissory note IF Buyer moves immediately.
i. Maybe offer “cash for keys” to lubricate the solution
(moving money only).
b. Buyer can squat, and I will…
i. file an eviction
ii. petition the court for a judgment on the note
iii. put the note to collection
iv. screw the buyer’s credit with an eviction
v. screw the buyer’s credit with judgment
vi. screw the buyer’s credit with collection activity
So far, nobody’s yet chosen the “squat” option (knock on wood) with me.