Question: If they can qualify for a mortgage, they will buy it.. But, if they don’t, they will move out and we already know that the house is trashed inside, not to mention the outside hasn’t been taken care of at all, (weeds everywhere). There are stains all over the carpet, would have to be repainted and mold in the basement. And these are things that we know of right now, I’m sure there is more damage that we don’t know of yet. When they signed the lease, the house was immaculate. Fixing it up and trying to sell it would be difficult in Michigan’s economy. They have been behind in payments during their lease and have a large amount of late fees that they want us to just take out of the security deposit. The deposit doesn’t even begin to cover the damages that we would need to repair. What can we do if they don’t buy it?
Answer: Fully document the damage with video and digital camera (High pixel) photos, bring witnesses and have the write affidavits to the damage and notarize them. Gather all of this up with your lease documents and visit an attorney. He will help you on two fronts (or just one if you want to save money). First he will need to total all of the monies owed and send a demand for payment letter. Next (if they are not already gone) he will draw up eviction papers. Next he can formulate a contract (If you still wish them to purchase) outlining them agreeing to purchase, the amount and terms including that they MUST obtain and maintain insurance on the property and giving a specific date by which the funding and sale will be complete. This will also be a binding document between you and your tenant to go along with the current lease document. The next issue he may be able to help you with, or you may wish to handle yourself, is filing a claim with your insurance company to cover the damage already done. You will have had to let your insurance company know the property was a rental, and if you had then some or all of the damage will be covered. There is a particular phrase for this sort of damage and it eludes me now….s s s….I can’t think of it but it should cover your damage in any case.
At the very least document the damage and get estimates to fix the damage and keep receipts for all of the actual work to fix it including your personal time off work (wages lost) attorney’s fees and all so you can begin recovering the money if you don’t make the sale.
If you screened your tenant and he has employment wages, or you know where he banks, then recovering your money after judgement is as easy as gaining the judgement, if not easier. File a writ of garnishment, serve it, and wait for the answer from the court. It will either contain money or not, and the info as to the amount enclosed or info on the lack there of. You may need to wait for it, but if your tenant was screened for suitable steady income it shouldn’t take too long before he is working again even if not now. The judgement should be good for 10 years and renewable for another 10 after that. You’ll just need to keep on top of his credit report to gain the info if he isn’t currently employed or depositing.