This will certainly cure California’s housing shortage, reduce the supply, that has to help, right?

If,  however, the conditions still exist,  then NYC will want to see those cured before moving forward. 

Having money in the bank, an employer that wants you back and a backup plan, cures a lot of ills. ;-)First, a day or two before closing the lender *Will check with your employer to verify that they plan on having you employed there for the next 6 months or more.

Then enforce the lease by posting notice to cure and following through with eviction...or add the occupants to the lease agreement...up to you. 

They should have a no-smoking policy, established fines, Notice to Cure or Quit letters, etc.

If he happens to rent from a seasoned land lord who knows the ropes he's late once and comes home to a cure or quit notice.

So let me ask you this switch positions . your seller.. you just deeded your home away you think everything is great.. now the payments are made for a year or so then. stop.. your seller probably has not really fixed their financial position and is now renting and so they can't afford rent and to pay a mortgage on a home they do not own... you as the real nice middle man who solved their problem is long gone you could care less you got your dough you just stuck your seller with basically a sub prime borrower they don't know... house will now finally go to foreclosure because both parties can't cure.. and of course your long gone you got paid you have no skin in the game does not affect your credit. 4. the people you saved cannot get another home because their mortgage is still on their credit.. they are stuck and did not realize it when they deeded it over.5. your Seller gets way pissed and files a complaint against you at the AG s office as you have taken advantage of someone in dire straights and now they are totally messed up. ( I have rescued investors who this happened to)So I know there are guru's that teach this and it all sounds good.. but UNLESS you have the ability to cut a check to payoff the underlying at anytime its called then step in and foreclose your lease option or contract for deed folks out.. then this is a horrible idea .. and again I know its taught and on the surfice it sounds wonderfuland it works like I said if your very well cashed up .. but most who do this are not ERGO they want the sub too deal as they see this as leverage into a deal with no personal credit.Also let me tell you there are sharks out there that do this and walk once they get a few grand .. in many states you cannot even deal with folks in foreclosure unless your a licensed foreclosure consultant.. our state is that way.So careful .. think it through .. use the 10 commandments due unto others.OH and lastly your comment about just walking that one really gives me heart burn.. you lead people on you bail on them and leave them no time to fix their problem when they could have been talking with a real investor or short sale broker that could have actually helped them and is not just looking to help themselves.

Now I have a motorcycle to cure that itch and it's a ton cheaper.

In the standard California Assoc of Realtor lease form, it states that "All or any portion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant’s default in payment of Rent (which includes Late Charges, NSF fees or other sums due)".

But you will be paying off the second at the agreed settlement amount, and by the second releasing the lien - there is no longer a default to cure.