Tennant has breached his contract for deed lease for the 3rd time, I want to evict

[Rob Pattison]

I appreciate advice from others who've been in a similar situation.

I bought  a" performing" note back in June of 2021 from an investor that turned out to be non-performing.   The investor kept his own books.  Note to self:  Only buy notes in the future from someone who has a professional servicer servicing the note.

The borrower turned out to be 8 months late.   He ignored my servicer's attempts to get the 8 months' payments to reinstate the note.  Finally I hired an attorney and sent out a demand letter demanding payment to reinstate or I'd take possession.  Magically enough payment came in that week to reinstate.

In 2022, after 8 months of somewhat on time payments, the same non-payment pattern started in November.   I looked for an attorney to evict as now there is a pattern.  Before I could commence action, the borrower paid one month's rent out of the 3 that he owned.  The servicer returned the check.  The borrower then sent by certified mail enough money to reinstate.

In 2023, Nov 21st, the same pattern, no payment.   In January 2024, I told my attorney to sue for possession as the buyer is now in violation of the contract he signed, entitling me to possession after 30 days delinquency.  The servicer is not accepting payments.  This note is a contract for deed, not a mortgage.

The house behind the note is a duplex, worth around $80k as is.   The P & I payment is $243.60.  Interest is 11%.   Late payment fee is negligible.  Payoff amount is $20.7k.

The borrower is high maintenance and his behavior pattern requires that I hire an attorney on an annual basis.  Some but not all of these costs I've been able to tack onto his balance.

My plan is to evict and sell as-is, or he can refi and pay me off the $20.7k.   I've also submitted a cash-for keys offer consisting of me paying him to move out and first and last month's rent somewhere else in return for possession of the property.   I'd have a guy at the door who inspects the house to make sure it is empty, takes the key, gives the cash, then we secure the property against squatters, and sell as is asap.

Would anyone take a different course of action?

[Glen Wiley]

You have been more patient than I would have been.