Mercy @ Work – Eviction

Is there a place for mercy at work? In particular, can a property owner afford to put off evicting a non-paying tenant, when investors and lenders have to be kept happy? Surely mercy in business is quite impractical?

Mercy takes a number of forms, some of which may not be the most obvious. We have an interesting example just about to close. We had foreclosed on two pieces of land. One had on it a run-down ranch-house, quite uninhabitable and clearly a drain on the property’s value. The other, smaller, piece had on it a mobile home, with a family of six, paying no rent. The owner was a surveyor with the local county, but was laid off when the recession started, and has pretty much given up. When we received an offer to buy the smaller piece of land, one condition was that we evict this tenant. Instead, working with the tenant and our broker, we worked out an arrangement in which he would prepare the house on the other piece of land for him and his family to live in, and would continue to improve it, in lieu of rent. We provided the raw materials and he has provided countless hours of labor (as has the broker, as an act of service). He and his family now have a home for at least a few months, and breathing room to refocus on job-hunting and rehabilitation. We have a house also in process of rehabilitation – the broker estimates that our $5,000 of materials outlay has already likely increased the value of that property by $100,000.

This was a refreshing opportunity that worked out much better for everyone than we imagined, but they are few and far between. There have been other times when we have had no alternative, and have had to proceed with eviction in order to be able to prepare a property for sale. If we don’t do this, we fail in our financial responsibility to our investors.

If we have a tenant (or a borrower) who has a viable plan to resolve the problem (e.g. buying the property, or starting to pay rent, or paying off a loan), then we can and must work with them within reason. There are many lenders and property managers who will see the other party’s problem as an opportunity to seize property or get increased income. We try very hard not to benefit on the backs of others. Determining when the alternative of waiting or working with them is very hard sometimes though – only too often we’ve been spun stories that have no foundation in either practicality or even intention.

Sadly, more often than not, even after we’ve worked with people, we end up having to go through with the foreclosure or the eviction. We wish it were not true. Often we will then get sued by them. I don’t think we’ve ever lost one of these cases, but of course they take up time and legal expense. We understand though – they’re often desperate. There are opportunities to show mercy here too, though we don’t always feel inclined to, given the nature of the invective poured out on us.

Mercy is hard in business. But then I have to ask “how much harder must it be for God to show mercy to us?” How much more have we offended Him, disobeyed, rebelled, cursed and angered Him? He evicted Adam and Eve from Eden because of their disobedience – do we deserve any less? And yet He welcomes us into His Kingdom. Amazing mercy and love!