Negotiating with a owner/resident after Sheriff sale (house is occupied by owner)

[Jonathan Faltot]

Hi there,

I'm offering cash for keys for the current resident/owner to get out of the house after buying at a sheriff sale. We got it under what we were expected to pay. the owner knows how much i got it for and is asking for us to give him 5k to leave the house. He says he knows the legal process of ejectment and how he can drag this out. 

Am I being played or is it wise for me to just do this so i can avoid the headache of legal fees and having my investment money tied up in a property for months? This is our first property we are doing. it's a really good opportunity. if we can get him out of the house... 

[Jonathan Faltot]

Quote from @Dominic Mazzarella:

Quote from @Jonathan Faltot:

Hi there,

I'm offering cash for keys for the current resident/owner to get out of the house after buying at a sheriff sale. We got it under what we were expected to pay. the owner knows how much i got it for and is asking for us to give him 5k to leave the house. He says he knows the legal process of ejectment and how he can drag this out. 

Am I being played or is it wise for me to just do this so i can avoid the headache of legal fees and having my investment money tied up in a property for months? This is our first property we are doing. it's a really good opportunity. if we can get him out of the house... 

It sounds like he's leveraging the system to squeeze some money out of you, but at the end of the day, $5K might be the easier and cheaper route compared to months of legal battles and holding costs. If the deal still makes sense with that payout, it might be worth it just to get him out quickly and move on. That said, you could try negotiating down, maybe start lower and see where he lands. Worst case, you go through the formal eviction, but that can be a hassle. If you do pay, make sure you get everything in writing, including a deadline for him to be out.

That being said, you can start the legal process to get the ball rolling and see if he's bluffing. Do you know if he has a job or any income or assets you could go after for non payment? I've personally had this situation with a couple of tenants and I didn't even consider paying them to leave. I did the exact opposite and immediately got really aggressive with them. But this was in a business friendly state and I don't know the laws in PA very well to you. Sorry you're going through this and good luck.

 thanks Dom. He is on disability. He seems reasonable to be honest, but he seems to know he can squat there and make this hell for me. the payout makes sense and even with the 5k given to him it would be under what our max bid would have been for the house. so mathematically it works out. the principle of the matter and price may not be worth the hassle as you are saying