Owner won't VACATE the house

General Real Estate Investing
1

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?

2

Have him out before closing.

3

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

4

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?

5

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.

6

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

EH