complications with buying foreclosed home with owner living inside

[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.

[Mark Ferguson]

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.