Can the homeowner stay in the home after closing?

[Ben Roberts]

I'm following up on a lead in Memphis, TN.  The home is in Chickasaw Gardens, a really nice part of town, and the home owner is elderly.  She is looking to buy a property in Mississippi to move in to when she sells the current home.  She is ready to sell but would like to remain in the home after closing if she hasn't found something else.  My plan was to wholesale the property, which means that whoever I assign the contract to, would have to be willing to let her stay in the home for a time, or rent it for a time, until she can move.  Can I actually do that?  How would that work?

I thought that I would just set a close date out for 3 months to give her some time, but she'd like to get the sale done as she also owes back taxes and is tired of hearing from the County Trustee's office.  Does anyone have any thoughts?

[Eric F.]

First, I doubt you are going to be able to wholesale it to someone else while the seller is still in the house. If I were you, assuming you can, I would close myself, wait to get them out, and then sell it to your buyer. I have trouble imagining anyone buying a wholesale property with someone in place for an unknown amount of time. I would not do it unless it was an insane deal. Also, if I bought it I would do so assuming eventually I am going to be in an eviction situation. 

I have bought a couple of houses where the sellers needed a couple of weeks after closing. What I did was put a substantial amount of money, like $7,000, in escrow until they moved out. If they did not move out by the promised date they forfeited the money and it covered eviction costs (time and fees). This was not difficult, however we were talking weeks, not months.

Honestly, she wants you to buy it and let her stay in it for 3 months? Just because she is tired of hearing from the tax office? I would not do it. In 3 months she still probably will not have found a place and then you have a massive headache. I would stick to your approach of setting a closing date off in the future and give her time to find a new place. No one else will do what she wants either so it won't cost you the deal.