David, both John and Antay are correct!It can take a LOT longer to foreclose than evict a Tenant! Since I started utilizing the "Lease To Own" strategy almost seven years ago, I have come full circle. I started off by utilizing the "Residential Lease with Option to Purchase" strategy, then I switched to utilizing "Mortgage Wraps" (otherwise know as blanket mortgages in Canada). I then turned back to utilizing "Residential Lease with Option to Purchase" type contracts.
WHY? Because it once took me two years to foreclose on a property because the legal system is set up in such a way that it "protects" the equity of the home owner. And during that time I did not receive any mortgage payments. That hurt!
The key here is to ensure you structure your (Lease Option) contracts correctly, if not, a Judge may very well view your "Lease with Option to Purchase" contract as a glorified "Agreement For Sale". In this case, your request to evict the Tenant under the "Landlord and Tenant Act" will most likely be declined and referred to the foreclosure courts. If you have not already done so, you need to attend one of Barry McGuire`s "Deal Ready Documents" workshops, as he covers areas like this very well!
With all of this said, you will ONLY run into a problem like this if and when you have a disconnect with a Tenant/Buyer.
I cannot stress the importance of education! As I always say, you may very well have great intentions, but you can easily set yourself, as well as others up for failure if you do not take the time to cleary understand the "legal" aspect of the strategies you are implementing. I know the "legal" aspect of Creative Real Estate Investing can be a somewhat "boring" and "dry" subject, but it`s one area of the business you should NOT take any shortcuts!
Hope this helps answer your question?
QUOTE (DavidMacDonald @ Jan 6 2010, 08:52 PM) Hi Everyone!
Just wondering if it takes longer to foreclose on a property that you`ve sold w/ owner financing than to evict if sold on a lease option. Fortunately, I`ve never had to do either one, but I want to be aware of how long it takes (and which one cost`s more in legal fees) so I can prepare should the unthinkable happen.
Thanks very much!