How do you define squatter?

[Sam Leon]

or specifically, if an owner Alan rented a property to a tenant Bob, and the tenant sublet it to someone named Charlie.

Now Charlie lives there and the property is foreclosed.

Alan and Bob are no longer in the picture.

Charlie is not leaving, property is listed but bank can't show the property.

Listing agent said the property will probably go to auction.

Now why would the bank not evict Charlie or offer him cash for keys?

Is Charlie technically a squatter or no?

[Dion DePaoli]

A Squatter is a person who enters and seizes possession of the property illegally. No person gave it to them, they entered and upon entering, seized.

A Tenant is someone who is given possession of the property or implied to be given possession. Clearly, not all 'tenants' are given possession by someone who can legally grant possession. The key idea there is that it was not seized by entry and use.

Charlie is not a squatter. He gained possession through Bob, whether Bob had legal authority to grant such possession is of no consequence in that sense. The bank must abide by the Protecting Tenants at Foreclosure Act of 2009 so they may not be able to initiate an eviction just yet. In addition, they may not want the cost or burden of doing it and will leave it to a new buyer. Any new Buyer will have to follow the act as well.

Essentially, Charlie either has a formal lease agreement which must be recognized or Charlie is considered a month to month, if no lease can be produced. Charlie does have to pay rent and that rent can not be 'substantially' less than market rent. Eviction can not be initiated for 90 days post foreclosure for any reason. After that, fair game.

A squatter from time to time does fall under the protection of a tenant. The reason tends to be it can't be proven the squatter is not a tenant. For instance, if the bank failed to check the occupancy of the property during foreclosure and secure it and a squatter sneaks in, then the squatter maybe treated like a tenant. If the property was secure and the squatter broke in, they are squatting and trespassing, they are not protected and can be force-ably removed with no notice.

Squatters can also turn into tenants under the same idea as above. This can follow similar occupancy standards like a hotel, around 30 days or so, they are considered occupants not squatters and are afforded rights which require eviction.