@Frank Chin  option money is tax deferred.. if the option Is not exercised and the transaction terminated the option money becomes ordinary income.

Hello BiggerPockets Colleagues,Does anyone have a sample of a "Letter to Exercise Real Estate Purchase Option"?

I agree Jay that it is rather a lengthy piece of information but the premise is of course "predator lending" this is just feedback to allow other's to exercise and prepare for unethical business practices specifically to doing one's financial due diligence such that this is an illustration of caveat emptor or let the buyer beware to prevent fraud from manifesting as a reality with no recourse for action. 

From what I know of WI law (haven't had to exercise this yet) if they don't move out on either the termination of their lease or the date of their notice to vacate you then have to go through the normal process of evicting them.

This little research exercise will give you an idea of what land trusts can do for you. 

It is an opportunity to exercise so many techniques and tactics that are constantly evolving in this business. 

All of this could have been avoided with the proper risk mitigation and exit plan.The DOS clause is certainly a real issue, but rarely does it ever come down to the bank actually exercising their DOS legal right.

Hi @Walt Payne There are aspects of 1) the mortgage company2) the IRS3) Dodd Frank```````````````````````````````````````````````````````````````````````````````1) The mortgage co will want market rent  and an exercise price that is pretty close to the appraisal, as the borrower needs to have the property appraise.  

A holder of the certificate who exercises this right shall be entitled to the same interest rate as shown on the previous tax lien certificate.

I would contact an attorney to exercise your rights.