Previous Owner Squatting After Foreclosure Sale
Investor · Tampa · Member since 2023 · 13 posts · 3 votes
Previous Owner Squatting After Foreclosure Sale
Most Popular Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votesQuote from @Mitchell Hammack:
Hi everyone,
I bought a property at foreclosure sale in Hillsborough county a couple months ago. During my DD before I bid I was aware the property was occupied by the borrower.
However, what I failed to consider is that this borrower would completely ignore any attempts for communication after the sale and transfer of title was certified. I emailed the guy, mailed him letters, called him and no response in any case.
Naturally, I went ahead and retained a lawyer to proceed with getting possession through the courts.
While that process is ongoing I'm curious if anyone has faced anything similar and has any out of the box strategies to get ahold of someone or take possession of a property.
You could offer cash-for-keys.
Reason: how much damage can the occupant do before you can have them removed by bailiff?
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11 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
@Mitchell Hammack, I bought a property though the tax sale process. There was a squatter in it who was originally the tenant of the previous owner who had died several years prior.
I didn't need to hire a lawyer to deal with it, but I did get some advice from my lawyer on how to proceed. What they suggested was to make them a de-facto tenant and then evict for nonpayment or nonrenew them.
So, I initially went to the door and spoke to the guy who did agree to start moving out, BUT I followed through with the guidance from the lawyer. I posted a letter for the squatter tell them that I was the new owner as of the closing date and that they owed me market rate rate of $XXX each month etc etc.
In my case the squatter did leave, but if he hadn't I would have filed for an eviction and it should have been cookie-cutter because it would be simple nonpayment.
If I didn't do that I would need to file for an "ejectment" which is a similar process to oust people you don't have an agreement with but its less cookie cutter I guess. So, turning them into a nonpaying tenant simplifies things.
Obviously, these sorts of strategies may not work the same in all states.
I'm curious why you didn't just go to the door? That is how I would always think to do it. I understand some people are averse to confrontation, but dealing with distressed situations is part of investing in properties like this IMO.
- Investor · Tampa · Member since 2023 · 13 posts · 3 votes5mo
Quote from @Kevin Sobilo:
@Mitchell Hammack, I bought a property though the tax sale process. There was a squatter in it who was originally the tenant of the previous owner who had died several years prior.
I didn't need to hire a lawyer to deal with it, but I did get some advice from my lawyer on how to proceed. What they suggested was to make them a de-facto tenant and then evict for nonpayment or nonrenew them.
So, I initially went to the door and spoke to the guy who did agree to start moving out, BUT I followed through with the guidance from the lawyer. I posted a letter for the squatter tell them that I was the new owner as of the closing date and that they owed me market rate rate of $XXX each month etc etc.
In my case the squatter did leave, but if he hadn't I would have filed for an eviction and it should have been cookie-cutter because it would be simple nonpayment.
If I didn't do that I would need to file for an "ejectment" which is a similar process to oust people you don't have an agreement with but its less cookie cutter I guess. So, turning them into a nonpaying tenant simplifies things.
Obviously, these sorts of strategies may not work the same in all states.
I'm curious why you didn't just go to the door? That is how I would always think to do it. I understand some people are averse to confrontation, but dealing with distressed situations is part of investing in properties like this IMO.
What I understood from my attorney is that getting possession after a foreclosure sale requires the judge in the foreclosure case to issue a writ of possession. The Sheriff then takes that writ and only posts 24 hour notice for the occupants to vacate. I'm in the middle of that process right now and will hopefully be able to get inside in a month or two. It came up during discussions with my attorney that for tenants it requires a new legal process and a 90 day notice as well.
As you suggested I am a little fearful of confrontation, but I did some further research on the occupant after I acquired the property. It turns out that occupant had been involuntarily committed to a mental hospital just a couple years ago for threatening to harm himself with a firearm. Needless to say learning that DID NOT help me while I'm working up the courage to knock on the door. I'm not going to completely rule it out, but I'm happy to wait a month to get inside with the Sheriff doing the heavy lifting. I may change my mind though if things stall on the legal side. - 5moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Mitchell Hammack:
Quote from @Kevin Sobilo:
@Mitchell Hammack, I bought a property though the tax sale process. There was a squatter in it who was originally the tenant of the previous owner who had died several years prior.
I didn't need to hire a lawyer to deal with it, but I did get some advice from my lawyer on how to proceed. What they suggested was to make them a de-facto tenant and then evict for nonpayment or nonrenew them.
So, I initially went to the door and spoke to the guy who did agree to start moving out, BUT I followed through with the guidance from the lawyer. I posted a letter for the squatter tell them that I was the new owner as of the closing date and that they owed me market rate rate of $XXX each month etc etc.
In my case the squatter did leave, but if he hadn't I would have filed for an eviction and it should have been cookie-cutter because it would be simple nonpayment.
If I didn't do that I would need to file for an "ejectment" which is a similar process to oust people you don't have an agreement with but its less cookie cutter I guess. So, turning them into a nonpaying tenant simplifies things.
Obviously, these sorts of strategies may not work the same in all states.
I'm curious why you didn't just go to the door? That is how I would always think to do it. I understand some people are averse to confrontation, but dealing with distressed situations is part of investing in properties like this IMO.
What I understood from my attorney is that getting possession after a foreclosure sale requires the judge in the foreclosure case to issue a writ of possession. The Sheriff then takes that writ and only posts 24 hour notice for the occupants to vacate. I'm in the middle of that process right now and will hopefully be able to get inside in a month or two. It came up during discussions with my attorney that for tenants it requires a new legal process and a 90 day notice as well.
As you suggested I am a little fearful of confrontation, but I did some further research on the occupant after I acquired the property. It turns out that occupant had been involuntarily committed to a mental hospital just a couple years ago for threatening to harm himself with a firearm. Needless to say learning that DID NOT help me while I'm working up the courage to knock on the door. I'm not going to completely rule it out, but I'm happy to wait a month to get inside with the Sheriff doing the heavy lifting. I may change my mind though if things stall on the legal side.
Its why I stopped buying any foreclosure or tax sale that had occupants in it.. you end up with a tenant in sufferance and have to evict. I also had 3 suicide attempts one successful.. its stressful to say the least. So no more occuppied homes for us. - Investor · Tampa · Member since 2023 · 13 posts · 3 votes5mo
@Jay Hinrichs I may get to that point depending on how this one goes. I'd like to help the guy out with some cash for keys or even some moving expenses but its been difficult getting a response from him
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Mitchell Hammack:
Quote from @Kevin Sobilo:
@Mitchell Hammack, I bought a property though the tax sale process. There was a squatter in it who was originally the tenant of the previous owner who had died several years prior.
I didn't need to hire a lawyer to deal with it, but I did get some advice from my lawyer on how to proceed. What they suggested was to make them a de-facto tenant and then evict for nonpayment or nonrenew them.
So, I initially went to the door and spoke to the guy who did agree to start moving out, BUT I followed through with the guidance from the lawyer. I posted a letter for the squatter tell them that I was the new owner as of the closing date and that they owed me market rate rate of $XXX each month etc etc.
In my case the squatter did leave, but if he hadn't I would have filed for an eviction and it should have been cookie-cutter because it would be simple nonpayment.
If I didn't do that I would need to file for an "ejectment" which is a similar process to oust people you don't have an agreement with but its less cookie cutter I guess. So, turning them into a nonpaying tenant simplifies things.
Obviously, these sorts of strategies may not work the same in all states.
I'm curious why you didn't just go to the door? That is how I would always think to do it. I understand some people are averse to confrontation, but dealing with distressed situations is part of investing in properties like this IMO.
What I understood from my attorney is that getting possession after a foreclosure sale requires the judge in the foreclosure case to issue a writ of possession. The Sheriff then takes that writ and only posts 24 hour notice for the occupants to vacate. I'm in the middle of that process right now and will hopefully be able to get inside in a month or two. It came up during discussions with my attorney that for tenants it requires a new legal process and a 90 day notice as well.
As you suggested I am a little fearful of confrontation, but I did some further research on the occupant after I acquired the property. It turns out that occupant had been involuntarily committed to a mental hospital just a couple years ago for threatening to harm himself with a firearm. Needless to say learning that DID NOT help me while I'm working up the courage to knock on the door. I'm not going to completely rule it out, but I'm happy to wait a month to get inside with the Sheriff doing the heavy lifting. I may change my mind though if things stall on the legal side.
A writ of possession is the result of an eviction or ejectment. The difference is the reason you are asking for the writ and probably the steps you need to take to make your case.
For example, with almost any court action with regard to real estate there are usually notice requirements. You may have been required to notify them of the situation and give them 30 days or even more depending on the state law before going to court.
That is why I believe my lawyer recommended making them a defacto tenant. That made the reasons, required notifications, etc all simple and cookie cutter where I could handle it on my own for little cost.
I don't blame you for being apprehensive about going to the door, although I personally probably still would have initially. If I was met with hostility, then I would not go back like that again. The first time going to the door, they wouldn't know who I was or why I was there until they answered. So, unlikely to get anything more than a harsh verbal response which would be fine.
- 5moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Hindsight is great, but never take possession of a place until you've done a final walk through. You can delay closing if the person hasn't moved out, but once you've transferred the money, you've lost that bargaining power. Good luck getting the freeloader out.
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Theresa Harris:
Hindsight is great, but never take possession of a place until you've done a final walk through. You can delay closing if the person hasn't moved out, but once you've transferred the money, you've lost that bargaining power. Good luck getting the freeloader out.
I suspect this poster bought the property at a sheriff's foreclosure auction where you don't get access to check the property out before closing.
You would be on point if this was an REO where a lender had taken the property as a result of foreclosure and were selling it. - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes5moGenerally that works, however this appears to be a foreclosure where the owner
Quote from @Theresa Harris:
Hindsight is great, but never take possession of a place until you've done a final walk through. You can delay closing if the person hasn't moved out, but once you've transferred the money, you've lost that bargaining power. Good luck getting the freeloader out.
involuntarily lost possession, probably has no money to move and nowhere to go.
I started out on buying pre-foreclosures and there is a specific way things need to go that you only learn through experience or from someone with the experienced. Sometimes it's cheaper to learn from someone experienced.
- 5moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Mitchell Hammack:
Hi everyone,
I bought a property at foreclosure sale in Hillsborough county a couple months ago. During my DD before I bid I was aware the property was occupied by the borrower.
However, what I failed to consider is that this borrower would completely ignore any attempts for communication after the sale and transfer of title was certified. I emailed the guy, mailed him letters, called him and no response in any case.Naturally, I went ahead and retained a lawyer to proceed with getting possession through the courts.
While that process is ongoing I'm curious if anyone has faced anything similar and has any out of the box strategies to get ahold of someone or take possession of a property.You could offer cash-for-keys.
Reason: how much damage can the occupant do before you can have them removed by bailiff?
Logical Property Management4.9451 Reviews- Investor · Tampa · Member since 2023 · 13 posts · 3 votes5mo
@Drew Sygit I was hoping to the guy would go for it, I even doubled my CFC offer but I can't do a deal with someone who refuses contact
- 5moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Mitchell Hammack:
@Drew Sygit I was hoping to the guy would go for it, I even doubled my CFC offer but I can't do a deal with someone who refuses contact
Hire someone to door knock...
Logical Property Management4.9451 Reviews
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