How To Secure The Sellers Will MOVE OUT?
Say I agree to give the sellers 20k for their equity. They are still living at the property but would need that money to secure living elsewhere, either to rent an apartment or secure a trailer.
They agree to move 1-2 weeks after closing. I fork over a nice cashier's check at closing...1-2 weeks, they're still at their home. What would I have to do in this worst case scenario??
I'm a little hesitant to hand out that money to sellers like this. They have gotten behind in payments, had a few minor liens attach. Basically their track record isn't that great for responsibility.
How do you arrange it so this isn't really an issue???
How you insure the previous owners move out,is called cash for keys. When I am given the keys to the house they get the cash but never before. Make it a part of the contract that until you receive the keys from them they receive no money. After you receive the keys go immediately and change the locks on the house and I mean literally all the locks.
I'd love to do that, but like I said they would need the cash first to secure a place to go. I doubt any place else would let them move in without any money. Any workarounds?
Quote:
On 2004-04-03 03:59, MichaelChandler wrote:
How you insure the previous owners move out,is called cash for keys. When I am given the keys to the house they get the cash but never before. Make it a part of the contract that until you receive the keys from them they receive no money. After you receive the keys go immediately and change the locks on the house and I mean literally all the locks.
If you are afraid they will not move hire a couple of guys to load the truck. Go rent the truck and drive it to their new residence which you have helped them find pay the security deposit and 1st months rent,which will be reimbursed at closing that day by the sellers. Have the 2 guys unload the truck and you return it to the rental place. Or bite the bullet and pay these items yourself for the assurance that the sellers are out.
pay for the move take it out of the equity cash
thats just what I think
MichaelChandler KEYS FOR CASH is a most excellent way.
Also on your contract for the closing, make sure it has the phrase "time is of the essence" regarding possession date. That way if it comes to a court fight it will be detailed. Once you have a Holdover Seller you should have it in your contract you get a daily rental rate. The date he is supposed to be gone is when you have the rate increase. Also he would have to be evicted as you are the new owner, if he does not leave. One sure cure is close and possession same day with proof he is gone when you do your final walk thru before closing. Hope it helps.
I have directly paid for the security deposit and first months rent when my clients needed move in money. Must you must retain the primarily balance for when they move out.
Brenda