If someone sues you for more than your LLC is worth, you forfeit your assets within the LLC but everything outside the LLC is allegedly safe.However, the average settlement is around $125,000.

If the numbers do not work at that point, I forfeit my earnest money.

Or do I forfeit that by already owning a property?

If not, it is immediately forfeited as liquidated damages for them not taking occupancy.It is very similar to earnest money for a purchase.  

Explain that it is non-refundable so if they decide later to not move forward that they forfeit the deposit. 

I've heard of people forfeiting their property.

Id allow them to leave and take all their crap but I’d keep their deposit and make them sign a waiver they are giving up tenancy and understand they are forfeiting the deposit .

It made forfeiting that tax exception palatable.

So, similar to a land contract, in the respect that you have an upfront downpayment, and above average monthly loan rate payment, which you will forfeit if you stop payments.  

Would the original renters still have to forfeit their deposit or any other money?