Right now, we have nothing but a lot of debt that is sucking the life out of my hubby.

The next thing you need to do is take that eviction and use it as the basis to obtain a judgment against the tenant for the unpaid rent and any property damage their deposit didn't cover when they moved out.Once you have a judgment you're in a better position because they collect interest and, unlike most other debt, are renewable.

I believe this is the point where you take possession.  

Does debt keep you awake at night?

Meanwhile, you're putting your hopes on a deal that cannot close as an insured sale nor likely to offer any chance of possession during the course of litigation or mitigation. 

Smith's payments until she either finishes up the lease option and takes possession in year 10 or abandons the property for $20K.  

And the bad new is, if you stay in the property you have to pay the property debt. 

The thing that people miss is that although having a debt free real estate portfolio would certainly be nice, the vast majority of large scale investors (yes even the millionaire ones), do not have debt free assets. 

Your looking at a 7% cap, it's an alright cash investment, but it wont float with debt services.

Now, at  this point the judge has many options:Throw out the contract, give possession to Mr.