Lessee defaults lease purchase
I recently aquired a property in pre-foreclosure then lease purchased it back to the owner on a 24 month agreement. I went into this knowing already that they would probably not fullfill the contract requirements regarding "on time payment" clause in the contract. I was correct, they have been late 3 times and the contract stipulates that if they default they become tenant at will. My question is how do I handle this? Do I notify them right now that they are in default of thier option and have become tenant at will or do I wait until they try to excersize their option then inform them that they have lost their option? (that is if they even do so in the first place). If the late payments get worse would I treat this lease purchase in default as a rental and ask them to vacate the property or legal action would follow?
I have never dealt with evicting someone and I guess I am a bit nervous about it. I just want to have my ducks in a row when it happens.
Thanks for any comments
Dan 
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