Purchasing an Occupied bank REO property, anyone with experience in this Regard?

11 Replies

It is my responsibility to get occupant out of property, was wondering if anyone had experience in this area. I would think it could be as simple as knocking on the door offering $500 for them to move , to saying I now own the property and you will need to vacate to filing an unlawful detainer action against occupant and have sheriff evict. Looking for anyone who have purchased and auction property or bank property in this manner input. 

I havent purchased a REO with a tenant (may agree to CFK) or homeowner (might be more difficult). Although It would be better to offer CASH for keys. I dont know how long the court process would take there, but in Maryland it is at minimum 1 1/2 months plus eviction which could take 3 more weeks not to mention if you Lawyer up. So by all means cash for keys, and make it sure they know to leave it clean and free of trash and debris for the cash.

@Tyrone Smith  It's completely dependent on what the laws are in your state.  It's pretty easy in Texas.  I was in NC, when the Great Recession hit and the mortgage crisis bit everyone in the butt.  This was a common problem in Charlotte.  Homeowners simply refused to leave their houses.  In fact, we also had a problem with squatters moving into homes people had abandoned to foreclosure.  Banks & investors both had a heck of a time getting both types of occupants out of the house.

Some homeowners are just going to shrug and say, "We'll be out by Sunday."  Others are going to say, "F**k you.", regardless of what you offer them.  What happens with that 2nd group is dependent upon what kind of actual power & authority you have behind you.

With tenants here an unlawful detainer action would take about a month or less, and sheriff would show up and I would be responsible for removing their belongings, boa foreclosed on this house back in 2010, which makes it odd the occupant is still there if it the original owner I would have their name, if someone ELSEB, would probably require a PI, TO DETERMINE WHO THE PERSON IN NEED TO SUIT FOR UNLAWFUL DETAINER..

@Tyrone Smith  

First you need to determine whether the occupant is the previous owner or a tenant with or without a lease.  A knock on the door and a conversation will determine how to proceed.  Cash for keys would be the quickest however I doubt someone who has been living for free since 2010 is "looking to leave by Sunday for $500" ! lol

I am assuming that you have not closed yet ?  I strongly advise you to gather all the information and address prior to closing to make sure this issues will not cost you considerable time and money

This house is being at such a discount that even if it cost me 10k it would be worth It. 

To increase your chance for success, approach the occupants sympathetically, tell them you're the new owner (or property manager, if they are hostile) and offer to help with their move out by offering them cash, or pay for a moving truck, or both.  

This is much more efficient than filing for an eviction, which is costly and time consuming. Not sure about the laws in Alabama, but in Florida, if they don't move out on their own free will, you'll have to hire an attorney who files a motion with the county court to obtain a "writ of possession", which you then take down to the local sheriff's office to get the eviction. The whole process could take up to 3 months and $1K+.  

update finally took possession today long story but if any one runs into this type of situation in AL please feel free to message me

@Tyrone Smith

I know it's been months now, but do you care to fill us in on how you resolved this situation? I am considering purchasing an occupied REO and would like to hear your story.


Thanks!

Each state is different Chris depending on your laws on Eviction for tenants and mortgage eject ment. That being said my situation involved a mortgage company never following though with the ejectment of the mortgagee. The bank sent the necessary letters for the time for right of recission to be void,If mortgagee held over . Most banks assume that's enough for people to move out, however my person decided to stay and she stayed for over 2years for free. That's right  free the and never filed he ejectment until two years later won the ejectment and en lists he house and the mortgagee believe it or not appealed and the court here granted that in this time period I contracted to purchase the home: I hired a Pi to determine who was in the house to find out if it was. The mortgagee or tenant as like I stated before, this would determine which way I had to go. I went to the house with police and Pi. With my deed in hand to meet this person in my house and she pulled out court of papers for a court date  a month ahead on her appeal. Prior to this we went to mediation. As ordered by the judge and we decided to allow the. Mortgageee. To apply for and obtains a loan within 20 days and if she could. she agreed  that if she could not get then loan she would vacate within 7 days if not I could be granted a writ of possession and immediately get property. Of  course her credit was terrible she  had spent all the money on a car I thought she financed and she did. It vacate and try to get more time however  I went ahead had sheriff Evict her with my writ of possession they left a lot of stuff in house I got and trashed it out. I would do it again but it was a gamble not seeing inside of house etc however it selling tommorow and it cost attorney fees, for mediation and that's about all that was extra since was an ejectment and not eviction. The key was locking the terms in the mediation although mediator was trying to put things in their favor.

Sorry for typos thping on phone in the car

Tyrone, I'd love to hear more about your experience with this. Are you going to the Montgomery REI meeting this coming Monday? I've only been a few times. Let me know if you decide to go and need directions.

Helen Kirk | [email protected]