Seller wants to stay in property...
I am currently working on a short sale deal where the seller has agreed to cooperate on a short sale of her house. She is currently in Chapter 13 bankruptcy and facing foreclosure.
The seller has signed a purchase agreement that has been forwarded to the lender. Now the seller is asking for me to allow her to stay in the house for 3 months until she can find a suitable place to live.
I initially advised her the company policy does not allow for sellers to remain in the property,...but she keeps raising the issue and pushing for an agreement to stay 3 months.
I've read where other investors absolutely refuse to allow this in order to avoid having to evict or foreclose if the seller 'changes their mind' about moving (after the lender' s foreclosure process is halted).
Any experiences or insight on this matter?
Thanks,
Monty
In short, DON'T.
That's exactly what will happen. After the three months, she'll either stop paying or find another reason to stay, etc.
If she couldn't pay the bank, how will she pay you for those 3 months?
There is a whole world of legal troubles that can happen by letting the seller remain in the house.
She'll be moving one way or the other. If she won't sell it to you without you agreeing to let her stay, I'd walk, no run, away from the deal.
Roger
Thanks Roger,
My sentiments exactly. Just wanted to hear it from somebody else.
Happy Investing,
Monty
NEVER NEVER NEVER rent to a seller or forclosee (is that a word), you would only give them the upper-hand. At that point they would have the dreaded "renters rights"!