Occupied REO on Hubzu

3 Replies

There is an interesting REO Hubzu that states that there are "no showings: property may be occupied!" It is sold "as is" and also states that "buyer is responsible for obtaining possession of property upon closing."

The "as is" part is not as problematic because the place is only 10 years old, and though I am fully aware that it only takes one upset occupant to fully trash a house in a coupe of hours, the question I have here is about the buyer obtaining possession aspect of the whole deal.  How difficult is that?!

It seems that the bank would have gotten the occupant out of the house when they took possession if it were a straight forward issue, and that the fact that the occupant is still there indicates that there could be trouble brewing down the line in getting them out if I buy this property.

Any thoughts or advice on this situation would be much appreciated!  Thank you in advance!

Buyer would need to file for eviction?

"Occupied, do not disturb....it's illegal trespassing..." is common.  Ignore it, knock on the door, be respectful, have a conversation.  Then you'll have a better idea of what you're dealing with.  The last property I bought for a client, listed as such, was actually vacant.

I suspect the occupied Hubzu auctions may be short sale hybrid types.  I have seen one here in Texas...and the eviction process is so fast and straight forward in Texas that I can see no reason to NOT foreclose unless the lender has been approached about a short sale and feels, perhaps after a brokers opinion, the auction is the fastest, cheapest way to go.  Evict, haul off trash, clean, maintain...can't cost much.  But the only other reason is to disallow inspection because of occupancy...it would lower the price you'd think, but maybe not.

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