You better watch out for foreclosure rescue laws in your state, and FBI and Attorney General's office really doesn't want any consumers messing around with peoples houses that are behind on mortgages doing creative dealsForeclosures and short sales are not a place for you to make a lot of money these days unless there's a huge amount of equity, and even then unless you buy the house out right for cash (ie what not to do is you cure the note and buy on subject to) you're risking getting the authorities involved with foreclosure rescue activitiesYou might consider a joint venture with the seller150,000 minus costs to sell of 10% 15k = 135kPay the 112k = 23k - 10k in repairs = 13kI would see if you could split the 13kGive him a note for 6,500 , Fix the house and resell and make 6500

Start documenting EVERYTHING now.Send them a CURE NOTICE for the son living there without having been cleared. 

This Notice will detail the defaults and will let you know what needs to be done to cure those defaults. 

When they move out, you have to file and pay for the sheriff to come out, who can take 2-6 months more months (of lost rent).The dog might be against your lease, but guess what the cure is if they don't comply?

The cure to both - the 4 ions: education, action, progress(ion), not perfection".Learn to use BP to its whole potential:Subscribe to BP blog and podcasts and start reading posts and listening to their podcasts collection.Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing + https://www.biggerpockets.com/renewsblog/2015/12/17/actionable-steps-reach-investing-goals/?

I have a friend that went through this type of scenario in Brooklyn due to the tenant friendly court system, every time the tenant would cure on the final day at the last minute.

You need an extensive spreadsheet that factors: cost of capital, foreclosure cost, back taxes, forced insurance, loan service fees, existing code fines, water/sewer bill, cure code fines, recording fees, borrower outreach cost, and many more fees that you will learn along the way.

Provide them with a 3 day cure or quit notice immediately2.

If the contract called for EM to be with the contract....you may have give them done typf of “Notice to perform/cure” which may allow them done hind to correct it.

Hoping some group would file suite to cure situation!