Does anyone have any knowledge or 1st hand experience with purchasing a bank-owned property that is occupied? This is in Pennsylvania..
IE; what's involved in the purchase process and how the occupants can affect it, as well as eviction if necessary to remove them after closing?
Thanks in advance.
Yes, and it can get exciting. I find it is best to work with the people in the home as best as you can. The key here is to keep them from destroying your house. People can do an amazing amount of damage in a few days and the PA eveiction process will take months.
So what I offer them is either assistance getting on with their lives, a rental truck, help finding an apartment, or even cash to go away.
On the flip side, if you buy the house cheaply, you can offer to rent it to them, or even do a rent to own tied into credit repair. One word of caution, get a quit claim deed signed incase they go that route and default.
Its a tricky situation. but I find people are easier to deal with if you are offering them something
To your success
@Josh Caldwell this particular listing states No Inspections, can't enter property, don't disturb occupants, purchasing sight unseen etc etc..What's your thoughts on how to approach this? Attempt to knock on door and speak to occupants and then propose some offerings and benefits to them working with you? Or would it be a "no-no" to even attempt to speak to them?
With that description, I would think its a no-no to talk to them ahead of time. The no inspection things scares me a lot. I had seen people who were losing their houses do terrible things to the house. This deal would scare me. There might be a lot of money to be had here but there could also be a big problem and I hate unknowns.
I wish I had better advice.
Wayne Brooks has a wise approach here:
I would talk to the neighbors first to see what's going on with those occupants. If the neighbors tell you they are looking for a new place, that says the occupants realize that their stay there is near its end since they have started to look for a rental, so the occupants should be easier to deal with.
That kind of a deal scares me more than a little. What if it has termites, or foundation problems, or simply has been trashed. To me that clause would drop the price a lot.
Thank you guys for your input here. I think it may make sense to pay a visit and knock on the door!
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