Is the idea that you just hope to profit from forfeited lease option fees paid by unqualified prospective buyers who never buy?

Once in a while, some nincompoops will let the deal go all the way to the scheduled closing date to finally say it’s not working out, and then the buyer often forfeits the EMD because they’re out of contingency by then. 

@Wayne ConnellWe do 30 days notice and they forfeit their security deposit.

If the tenant backs out, they forfeit their down payment.

Also know that the 10% is non refundable, so if you dont pay the balance due you forfeit the 10%, and you are buying subject to liens and encumbrances, I have purchased many sheriff sale deals, and have contemplated what you are asking, I have only come across a few banks that will sell their bid, I suppose you could pay the balance with someone elses money and then have a deed to them, but the rules recently changed and many counties are requiring the Clerk of Courts to record the deed which can take a day or 2 

We're also altering our lease to include clear language and penalties (forfeit deposit + 2 months rent) for a roommate leaving early.

Tell them you'll let them out of their contract for one month's additional rent and they forfeit their deposit.

@Sean McCluskey it is pretty normal that you forfeit  your deposit if you cannot or will not close on time.

Otherwise you may forfeit your earnest money.

@Henley H.I cannot speak to WY, but here in NY if you did not provide a Disclosure form you would forfeit $500 at closing.