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Updated over 4 years ago,
Need Solution - Seller has no funds until Close
Hello BiggerPockets Experts!
I have just put a SFH under contract. The owners are brother and sister and they inherited the paid-off home from a parent that just passed away. The sister is currently living in the property but does not have another place to live once we close in 40-days. Upon close, she will get around $80,000 but she has no money and little income to find a property in the meantime. I worry that if I let her lease the property after close, she may not pay and the eviction process right now, is quite challenging. Here are the options I see.
Option 1: Let her lease the property after we close for a month or two and hope she pays rent and vacates.
Option 2: Give her a loan now to find a property and require funds due at closing. Can I put a lien on the property to protect myself if the property doesn't close?
Option 3: Do nothing and hope it closes with her moved out.
Do you see any better options? What do you recommend?
Thanks in advance for your expertise.
V/R,
Ryan Nastase