If a judgment company feels the tenant is collectible they usually offer to split any money recovered 50/50 and pay for court costs.

You can always fall on your sword and say you're sorry to the tenant but you can't recover lost rent from a deadbeat tenant that is staying for free on your new buyers nickel.

It could take several periods to recover the amounts paid to the broker through interest from the borrower.  

It does say in my leaseIF TENANT VIOLATES THE LEASE AGREEMENT, THE LANDLORD MAY SUE EACH TENANT IN COURT:1)TO COLLECT OVERDUE RENT, LATE CHARGES AND MONEY DAMAGES CAUSED BY TENANT’S VIOLATION OF THE AGREEMENTS IN THE LEASE.2)TO RECOVER POSSESSION OF THE LEASED PREMISES (EVICTION).3)TO COLLECT FOR UNPAID RENT UNTIL THE END OF THE LEASE OR UNTIL ANOTHER PERSON TAKES POSSESSION OF THE LEASED PREMISES AS A NEW TENANT.

So for instance if you are buying a 3 million dollar property and put 1 million down and have nothing else then the lender thinks if a problem occurs how will you recover from it and keep the loan performing.

Fun topic.Do some spec building of duplexes and sfrs, our market has not recovered enough yet but I've been buying lots...Turn a large piece of land 20+ acres into an organic farmBeachfront vacation rental in Florida.

Jonathan West the logic is that you invested in an income producing asset and you should be able to recover your cost over the life of that asset.

Only hold onto it long enough to break even and then sell.Even holding onto a property until the market recovers is a gamble in profits vs. loss.

I think the consensus above is not that the "$7500 is owed" by the seller, but rather that the seller is the only option to recover anything from at this point as the tenants appear to have valid leases in hand.

I'm still trying to recover from a "rough patch" in my career path and looking to transition eventually to R.E. full time.My wife and I have 3 dogs one of which is in my profile pick: "Say hi, Ta'ko!"