If you worried about the process I would advise finding a real estate lawyer and seeing if they will sit down with you and walk to through all the eviction paperwork before hand just to make sure your ducks are all in a row.

Remember, gain on sale is based off of his basis in the property, not how much cash he walks with because he has no mortgage. 

Did you do the walk through with you agent ?

They should walk you through everything you need.

Its been out there for weeks and is clearly visible when you are walking up to the front door of our house next door.I talked to the neighbor across the street today and he wants me to buy this house next.  

Using real numbers, I believe I can sell it and walk with 90k minus 7k in capital gains tax.

I looked at a legal 2 family in the bronx. 3 br over 3 br with a 1 br walk in.

It's a walk out (private door) with ample room to make a large apartment down there.  

Most likely, I'd be waiting until Monday morning for him to produce EM in that form, but that's plenty of time for him to walk away from this deal and find another who is not so strict on only accepting that type of payment.

Travel there, walk/drive the streets, get to know the prices of each neighborhood, and most importantly, talk to as many people as you can.