Minneapolis / St. Paul suburban home in foreclosure purchase

Minneapolis, MN · Member since 2015 · 9 posts · 0 votes

Just bought my first house in Shoreview, MN. Found out it was getting foreclosed on from a family member only had 3 days to throw something together. Ended up closing the deal with hours to spare. I have never been so nervous. The purchase was unique ended up getting the house for the cost of a funeral, back taxes, and medical liens. So far I'm in for $32k I think house is worth at least twice that. Nothing like jumping in feet first. Haven't figures out what to do with it. I did inherit a tenant that was staying there for free that kinda makes things more complicated.

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David K.
Home Inspector and Real Estate Investor · Bloomington, MN · Member since 2015 · 38 posts · 9 votes
10y
Wow! Good luck! Someone on here will know how to help get rid of the squatter.
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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
Originally posted by @Matthew Carlson:

Just bought my first house in Shoreview, MN. Found out it was getting foreclosed on from a family member only had 3 days to throw something together. Ended up closing the deal with hours to spare. I have never been so nervous. The purchase was unique ended up getting the house for the cost of a funeral, back taxes, and medical liens. So far I'm in for $32k I think house is worth at least twice that. Nothing like jumping in feet first. Haven't figures out what to do with it. I did inherit a tenant that was staying there for free that kinda makes things more complicated.
Make sure you verify that the auction sale was stopped from happening. I've heard horror stories of people trying to sell properties they bought out of foreclosure at the 11th hour only to discover that the title search found a sheriff's deed or similar from the auction sale which shouldn't have happened.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict
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Matthew Carlson
OP
Minneapolis, MN · Member since 2015 · 9 posts · 0 votes
10y
I hired a lawyer to do my due diligence for me since I had no clue what to do.
He did a title search and had to get a bunch of certified papers signed to be cleared for the transfer of title. Hopefully it all works out.
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Tim Campbell
Real Estate Agent · Minneapolis, MN · Member since 2015 · 112 posts · 40 votes
10y
Congrats on the purchase. Was this your family member? If not, how did you find the deal?
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
10y
@Matthew Carlson, if you've inherited a tenant/squatter, make sure you follow the landlord tenant laws to the letter when evicting.
But so exciting that you have 50% equity right from the starting gate.
Something I don't agree with in principle, but would recommend anyway, is called Cash for Keys. Basically, you avoid the costs and time associated with an eviction by giving the current resident an incentive to vacate the premises AND leave them in tidy order by offering a certain amount of cash for them to turn over their keys. $250 or $500 might get the out the door in a week. Once they're gone, change those locks, clean and repair, then rent again.
Keep us posted!
[email protected]Podcast Guest on Show #261
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Matthew Carlson
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Minneapolis, MN · Member since 2015 · 9 posts · 0 votes
10y
TIM- this was purchased from a family member.
Mindy- thanks for the tip, I may have to try that. Sound easier and cheaper than an eviction.
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