complications with buying foreclosed home with owner living inside

complications with buying foreclosed home with owner living inside

Fremont, CA · Member since 2011 · 20 posts · 0 votes

I have never seen the property inside, but it's a pretty new construction, and have been told that the bank didn't want to evict the owner and want to sale with the owner living inside. is there any legal issues if I buy the property?

it is for rental.

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  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y
    Originally posted by Nate Mao:
    I have never seen the property inside, but it's a pretty new construction, and have been told that the bank didn't want to evict the owner and want to sale with the owner living inside. is there any legal issues if I buy the property?

    it is for rental.

    Lots of potential issues. Do you know for sure that the owner is living in the property, and not a tenant? A tenant presents all kinds of legal issues. Then there is the issue of what happens if after you buy it, the people living there say they are tenants, even if they aren't. Lots of that going on these days.

    Who is this bank that doesn't want to evict the owner? Is it a private or hard money lender?

  • Fremont, CA · Member since 2011 · 20 posts · 0 votes
    13y

    it looks like a Fannie Mae home, my agent told me the REO agent have the knowledge that is the owner inside, and he try to rent back the home or something.

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    13y

    You basically take over all responsibility for the occupant. If you have to evict them or want to rent to them it is all on you to set it up. I have sold a few occupied REO and it is tricky for sure. Usually the best technique is to offer them a cash for keys deal like the banks do to get them to vacate in a timley manner and avoid an eviction. Most likely the bank already tried this and it didn't work well.

  • Fremont, CA · Member since 2011 · 20 posts · 0 votes
    13y

    actually it's Bank Of America's home.

  • Fremont, CA · Member since 2011 · 20 posts · 0 votes
    13y

    it worries me when my realtor freind checked the mailing address is different from this home address, it might be a renter inside.

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