Owner won't VACATE the house

How would you prevent this hypothetical situation from occurring?

  1. The owner sells his property to you.

  2. You give him $10,000 and take over a $125,000 loan subject to.

  3. The property needs $5,000 in repairs.

  4. ARV is $200,000.

  5. Here is the problem: He will not vacate the property and doesn’t care if you stop making payments on the loan. He has your $10,000 and now says that he will stay in the property until the lender forecloses.

At this point I would imagine that the only remedy is eviction.

But what would you do to minimize the risk of this situation occuring?

Have him out before closing.

You made a big mistake. Now you have to evict him. And go thru that process. Don’t wait. Do it now.

Thanks for the response Equityhunter, but this is a hypothetical situation.

I want to know WHAT you would do to prevent this situation from occurring?

No money till he’s out

Every thing in writing

if you just took over his payments with out a mortgage, quitclaim or an option deed youd be screwed.

You don’t close on the deal until he is gone. I misunderstood your post. Sorry. This is basic. REI 101.