With the option in place, you can turn the property around and exercise it if it makes sense.

It is treated as a deposit, and becomes part of the sale proceeds when the option is exercised.

In a case like this, they may have been putting this out to see if someone was going to balk at the addendum and shake them out of the process early.Buying a REO is an exercise in frustration and patience.

I would be more concerned with them being unstable and up and down and up and down (volatile).In many cases not having the rent is BS.They just decided to pay other things before you.Just like people saying they don't have time to exercise but when you dissect their schedule and allocation of time there is plenty of time there.

If a lender fails to exercise their DOS rights that is fine.

I think this is a good lesson as to why the 2% rule/CAP rate exercises are just preliminary tests you can run on a property.

Exploring ways to reduce taxes is one exercise in the exploration of those options.

You can exercise your right at any time during the next twenty years.

I have not had an issue or heard of anyone I know have an issue.Like what Ronnie said, keep the note in your name and clean, and the bank doesn't have reason to exercise the DOS clause.

An illegal eviction occurs when a landlord illegally denies a tenant access to the rental unit or a tenant’s property is removed without a court order and the removal: Is not the result of abandonment and/or is not the exercise of a landlord’s lien.