evict or wait to buy new property

4 Replies

Hi BP, I'm going through the loan process on my third property right now. as it stands my file will be coming out of underwriting today. My problem is I need to start the eviction process on one of my other units. I keep getting story after story and I have had enough ! My question is if I start the eviction as I'm going for the loan on the new house will the bank find out? Should I wait till after I close to start the process? I'm scheduled to close in about 3 weeks and using all the rental income to qualify. what should I do wait or evict? thanks! ryan

I imagine most loan due diligence will ask you whether the tenant is current or not. I don't see a difference in delaying the eviction process.

File for eviction today. Get the process started. Maybe this will get your tenant into gear to pay. Right now, you're not getting the income, eviction or no eviction...so do yourself a favor and file.

File for eviction now. It should have no impact on loan application.

As long as the eviction is at one of the houses that is not being refinanced, you'll be fine. Ultimately, that is why they take 75% of rent. They know you're going to have collection/turnover times like that but that its not permanent.

I don't think I've ever been asked in over 70+ refi's if any of my houses had collection issues or evictions.  I actually completed a refi not too long ago where I had just evicted the tenant and got them out of the house about a week before the appraisal. :-)

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