The tenants learn of sale and ask if they will be forced to move. How do you answer?

You explain that it depends upon lease agreement. If tenant signed a lease they have right to remain in unit at least until end of lease... longer if new owner agrees.

In many cases tenant signed a lease and remained after lease term ended. At that point their occupancy became a month to month tenancy.

Folks learn that you know something about real estate investing and they eagerly ask you about buying foreclosure property.

The general assumption is that they can buy a beautiful home at a deep discount at a foreclosure auction.

Their smiles fade when you explain that they will have to pay cash on spot and they must be able to research title to be sure they aren't buying trouble.

But wait... there's more... There is also a little something called "Durrett Rule".

Oh boy... can that be a like a knife in back. For example: You spend time and effort scouting out a nice home scheduled for foreclosure auction. You search title and scare up cash to have in your pocket when you go to sale.

Hurray... You have winning bid at foreclosure sale and buy home at about a 40% discount to market value. After doing your happy dance you spend next few weeks doing needed fix up. Then you find a renter and settle back to collect rents for next few years.

But wait! Who's that knocking on door.