If the seller or tenants refuse to do this, then you can ask the seller to put 45 days of PITI + expenses in escrow with the remaining balance refundable back to the seller if the tenants move out earlier than 45 days (this however, does not guarantee that the tenants will move out within 45 days but it does put pressure on the now seller/landlord to push for option 1 - having the tenants sign something). 

I look forward to it.Right now that "counting rental income from an in-law unit that a SFR has" magic is only for FTHB and loan amounts under $417k while they test the waters, but I strongly suspect that once they are done testing the waters it'll be rolled out to high balance and non-FTHB loans.

The balance =         ~$49,500 with payments of ~$450 per month (PITI)- Current rent roll = $1325 per month; PM = 130 per month- Current ROI for the Middletown duplex =         [($1325 x 12) - ($450 x 12) - (130 x 12)] / $25,400 = 35% ROI

And then work through an attorney to pay for remaining balance (actual bid price)?

Everything they had build, in terms of their REI Portfolio, Bank Account Balances, their Personal Residence, etc. was lost, or they filed bankruptcy.

@James Edmister first of all, pay off the credit cards and stop carrying a balance on them.

Looking at area rent and the property itself (built in 1880) I figured $495K was the max I could offer and still cashflow (putting 30% down and financing the balance 30 years at 3.5%).

You should consider shore up your balance sheet to weather through the next recession whenever that is.

All of my credit now is low balances, and on time payments.

To be clear, the pay off is the principle balance plus any accrued interest and fees, etc. if the loan is behind.