[quote=zzz]SDR and BG…yes he’s advised as well, but I like to cover my bases, so while I trust him, I always do my homework as well, and know folks here have a lot of experience, so know its good to get the collective thoughts. He presented 2 scenarios, make the tenants out a restriction the deal, or deal with it if we REALLY want the property as expect this house will have multiple offers. The sellers agents are not that responsive, so yes working on getting the lease details. Thanks for the feedback.
And no, I’m not an emotional buyer at all…[/quote]
If the house is really a “pigpen” as you say and the sellers and their agent don’t really care, then they are attempting to “test” the contingencies or lack thereof of the offers they might recieve and see if they can “cherry pick” the ones with no contingencies re: the tenants and present ONLY those offers to the lender(s), regardless of price.
It sounds like a possible SS on this property here is far from being “approved” by its most senior lienholder in default.
Realize that if you close on such a property without demanding eviction of the tenants by the sellers, you may very well have to wait out the balance of a “just manufactured” lease the tenants come up with (at the 11th hr?) which allows them to rent the property below market. During the balance of their “tenancy,” they can easily do MORE damage to the property which could negate the presumed “discount” you think you are receiving by purchasing a “short sale.” And to break their “just manufactured” long-term lease (lol), these tenants could demand far more from you to vacate than the typical $3K “cash for keys” payment. If they are friends or relatives of the seller who began “renting” AFTER the seller stopped making payments, they may very likely have paid NOTHING in security deposits. Even if they DID post a damage/security deposit with the “seller(s),” it has likely been spent instead of deposited into a “trust account” as required by law and so cannot be deposited into escrow for you.
I wouldn’t do it nor would I allow a “client” to do this. As the new buyer of this cesspool, you could very likely end up swinging in the wind with not only a legal bill for eviction, but a WHOPPING bill for fixup and repairs in order to live in it yourself, not to mention having to pay PITI on it during the months you cannot take possession of it (if you purchased it with a mortgage).
