Renter has 1% on the Title in a 55+ Community

[Donna Adamek]

This is our 1st deal (yeah!) So in saying that I might not be saying the correct terms, so if I do please correct me.

We are looking to puchase a REO in a 55+ community. We have a couple that wants to rent.

The issue we have, the community requires the renters to be on title for only 1%.  And according to the agent it is stated they only have 1% on a second line.  But our lender (personal friend) has never heard of this (has been in the biz a long time & is creative).  His concerns:

1) What if we have to evict the couple

2) They pass away and their heirs try to take over their 1%,

What legal rights to we have since we don't own 100%.  

If you need more info please let me know.

[Jean Bolger]

And every time you got a new renter you'd have to find someone who would be willing and able to "buy" that 1% and be sure that they --or their heirs-- not make a stink about it when they move? This sounds like it would range from just a major pain in the butt to a veritable nightmare. It would have to be the deal of the century for me to even want to look into it. Other folks may have higher tolerances for that sort of thing though. Just be sure you are one of them!