What to do when seller wants to rent back for a year???

[Vicky Yu]

I just got the approval from the bank that we are in for a single family house in San Jose, this is a short sale. The seller told us before they presented my offer to the bank that they wanted to rent the house back for a year. I'm getting a little nervous because what if the tennants dont pay rent and if this happens and I start the eviction process, they might thrash the house. How should I proceed? Has anyone had similar situation before? Any advice would be appreciated!!!

[Aaron Mazzrillo]

The bank will more than likely request you sign an addendum stating you have no previous agreement with the borrowers to lease or sell the property back to them.

Your contract should state the day/time you want possession and most agents put somewhere around 3-5PM day of escrow close.

Find out what day you are supposed to close and request a final walk-thru the night before. If they have not made any attempt at moving inform escrow that you do not want to close until the buyers are packed and out.

I just had this exact same experience and this is how I handled it. The sellers also took the stove and left a bunch of trash. Most short sales have a check going to the sellers for moving expenses. Have your Agent contact their agent and see if this is the case. In my situation, their agent told us he would withhold the check ($3,000) until they turned the property over to me in a condition I deemed acceptable and returned the stove.

By the next day, the place was empty of trash (not clean though) and the stove was sitting in the back yard.