Hypothetical Nightmare Situation

[Casey Culver]

Alrighty everybody, I’ve purchased my 4th property at foreclosure auction and I’ve run into the dreaded situation…the occupant won’t leave.

I posted my 7 day notice to vacate (alabama), and I’m going to file a complaint per the process on the 8th, and I’m not concerned about that part. I’m concerned about a hypothetical situation, one where the occupant, out of anger, just completely destroys the place, burns it down, collapses it, whatever he does. What happens then? Do I just lose everything and that’s it? What’s that process like?

If anyone has any experiences, tips, or any advice that has come from situations like this I’d be happy to hear them. Thanks!

[Jeff Copeland]

One thought is to use the leverage of the pending eviction to implement cash for keys. 

If you treat the occupant with respect and explain to them "Look, I didn't create this situation. I used my hard-earned money to buy this house as an investment in my family's future", etc etc. 

And explain to them that it boils down to two options:

1. Wait out the eviction. It may take a few weeks/months, but eventually the sheriff is coming to remove them from the property and they will have an eviction on their record for the rest of their lives, or

2. "Work with me here. I'll give you $1,000.00 (or whatever amount is feasible and appropriate) to be out by the end of the month (or whatever date is feasible and appropriate). You leave the house reasonably clean and empty, you hand me the keys, and I hand you 10 crisp $100 bills on the 31st."

Option two often ends up being cheaper and quicker for you in the long run. 

Here's the key: Use the right paperwork! Get it from a local attorney and make sure it is signed, notarized, or whatever is needed, so that if they don't leave, you have the right to move forward with the eviction the very next day. In Florida, this is often called an "Agreement to Vacate" or a "Mutual Termination":  

https://vimeo.com/295589587

Beyond that, it may be worth talking to your insurance agent about whether damages caused by a tenant would be covered, and to what extent.