The previous owners owed the state from a grant they were given because they haven't stayed in the house as long as the grant stipulated.

Your state landlord laws may have stipulation on what you need to do.. but usually 1 check written out to all 3 tenants.. so probably let them know ahead of time you will need a forward address to send it to.. 

Thank you very much.Property is Being Sold Subject to HUD Guidelines 24 CFR 206.125This property is a Fannie Mae Reverse Mortgage REO.The code above allows an heir to purchase the property at 95% of the listed price.Other stipulations of this type of property include:Property cannot be sold below appraised value (LIST PRICE)No mediationNo electronic signaturesNo repairs, “AS IS AT TIME OF CLOSING”No buyer closing costs paid by seller are allowed on the HUDBuyer pays HOA Doc & Transfer FeeNo utilities are on.

. #2) You are responsible for the EMD if you don't perform in the timeframe stipulated in the contract, so you could lose your EMD.

If so are there weird stipulations?

I am have an accepted offer on a Turnkey with the stipulation that I accept the asking price regardless of appraised value...Based on comps it should appraise.....Just wanted to hear some feedback from BP community??

Thanks David, I'll keep those figures in and stipulations in mind going forward!  

Typical FHA stipulations require you to live in the property for 12 months. 

Even with free-market tenants the stipulation out here is pretty much always that the property will be delivered vacant.

Here in Oregon the law stipulates that the tenant is only liable for 1.5 months of rent and you can not take their deposit (unless they dont pay the rent that is due) AND the landlord must mitigate risk.