How would you prevent this hypothetical situation from occurring?
The owner sells his property to you.
You give him $10,000 and take over a $125,000 loan subject to.
The property needs $5,000 in repairs.
ARV is $200,000.
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?