Eviction
Hello Biggerpockets,
I have a questions regarding eviction or possible evictions.
I am currently under contract with an owner who is in pre foreclosure process. The property is a 3 family, and I currently have it below appraised, and market value. Even with though the property needs work the price that I am purchasing it for and putting into it will still be below appraised value. I've had this property under agreement since Thanksgiving. Thereafter, we decided that is would be best to have closing on the 2nd of January to allow the two tenants that live on 1st and 2nd unit 30 days to leave the property. They have been tenants at will for sometime and haven't been paying either.
During P&S we decided we'd extent closing to the 9th. A week prior to closing we were informed that the tenants haven't found a place, and it doesn't seem the seller wants to do eviction. I forgot to mention that I will be renting back the 3rd unit to the seller for up to 6 months until he finds a place. Now on January 9th I agreed to give the seller two more weeks to get the tenants out.
My finance people, who are hard money are asking for status because that two week is approaching. (Closing on 23rd) they suggested either taking the tenants on and conduction an eviction if he can't deliver vacant or walk away. Now if he doesn't deliver of vacant he will have breeched the contract.
My question is what is to be done? I've never done an eviction before, and feel the seller isn't working hard enough towards this. By February he will be in a full foreclosure, and most likely will be asked to leave himself.