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Updated about 2 years ago,
Selling House, Tenant Owes Back Rent, No Leverage to Evict Now...
Buyer is requesting rent rolls on 11 unit building. I have a tenant who is behind on rent but is now paying rent and making monthly payments. Once the house is sold, the 11 months of catch-up payments will probably stop and I'm out several thousand.
Can and would a buyer ever want to "take over the debt" to evict this problematic tenant? (Tenant could suddenly "find" the money to avoid eviction and I'd get paid).
Am I better off giving the tenant a "personal loan" - and take tenant to small claims court if he defaults? If I give a personal loan and take on the debt, do I have to disclose that the tenant is behind?
I don't want to ruin the sale. Any suggestions?