Some people have a difficult time getting the homeowner to move out. What I’ve found is that your ability and ease at getting a homeowner to move out is directly related to your approach with them. Early on in my business, I tried my best to convince the homeowner that moving out is in their best interest. What I found was that I ended up arguing with them about what was best for them. I ended up feeling like the homeowner and I were not on the same team, and I did not like this. I came into the situation to help the homeowner, not hinder their situation and complicate it. So I sat down and tried to figure out how to handle this very important part of the process. Here’s what I came up with, and this works beautifully well.
My conversations go something like this…
“So Bob, have you found a place to move to yet?”
Realize that many homeowners will have already found a place to move to or will already have an idea of what they want to do. If their plan matches your plan, then just let it be. If, however, they want to stay longer than it works for you, then you may want to have the following discussion. By the way, I try to coordinate for my homeowners to leave the property within a couple days after the BPO is completed. This allows for the home to look as junky as possible for the BPO. Anyway, if they plan to stay or want to stay longer than I would like them to, my conversation goes something like…
“Bob, I know things are tough for you right now financially, and I want you to continue to live rent free for as long as possible so you can save up enough money to move on. However, it is easiest for me to sell your property vacant. The good news is that I’m not going to start marketing this house hard until after your lender does an appraisal on your house, which means I don’t need it vacant until after the appraisal. After that appraisal is done, however, I really need to get this place sold, which means it’s best for the house to be vacant within a day or two after the appraisal. I don’t know when they will order the appraisal. It might be right away, and they might wait a month or two. I should know a couple days to a week or so prior to it being done. Will that be enough time for you to get moved if you can start today to just look for a place?”
If they still indicate that they will be living in the house, then I usually say something like,
“Bob, I’ll do my best to get the house sold if you’re still living in it, however it greatly reduces the chance of me being able to get it sold. Bob, it’s your house and your foreclosure. I’ll do whatever you want me to do, I’m just telling you what I need to give this the best possible chance of getting it done.”
Basically, I put everything on the back of the bank and the homeowner. I let the homeowner know what I need in order to help them avoid the foreclosure (a vacant house within a day or two after the BPO). If they are not willing to help me, then I just tell them that they are decreasing the odds that this is going to get done. Simple enough.
If you address this issue in the above way, I think you’ll find your homeowners working with you most of the time. You NEVER want to push them out of their house. It’s their decision to leave, not yours. You just give them reasons to leave. You tell them what you need to give this the best odds of working. It’s up to them if they want to do it or not.
Good luck with it!
p.s. I never offer them money up front. If you end up giving them money (which I RARELY do) then do not give it to them until after you close, until after you get paid.
p.s.s. I do not say anything about their credit. They know their credit is horrible, and it’s not going to get too much worse than it alreay is. They’re probably going to need 2 months security deposit to move. Working with them to stay until after the BPO may help them to accumulate that money, which makes you look like the hero to them.
