foreclosure problem with home we bought complete with extortion

[Renee B.]

We bought a foreclosure on auction.com for a good price in Long Island, NY.  The previous owner is still in the house and basically trying to extort us for a lot of money.  He has already been in the house for about 2 months, because his mother passed away and said he did not have time to find another place to live.  We were ok with that.  He said that he sold the air-conditioning system (central air) and that his friend was going to come and pick it up when he left - unless we wanted to pay $2500 for it and he could return the money to his friend that paid for it already (this was the first red flag).  He also said that the insert for the gas fireplace was sold and that we could buy that as well for another $2500.  We agreed that we would buy those items and he also wanted to stay for another 2 months.  We agreed and figured it would be easier than trying to legally trying to get him out.  He said that he would be left with NO money after he pays the guy back for the air conditioning and the gas insert and that he needs more money.  We offered $7500 total and gave him the time.  We just received a call from this guy's attorney today saying that the deal we struck with him is now off and that he wants $15K to leave and he wants to stay until the end of December.  Is this not extortion????  We asked the attorney to send that request in email form and we have yet to receive it.  We started the eviction process and are planning on the papers being filed and served asap.  I guess my question is can this guy destroy the home before he leaves?  I thought I saw a new law in NY that protects people from "home destroyers"?  That there could be criminal action and possible jail if someone does this?  I also am wondering if we can send a friend to live in the house as well?  We were thinking if our friend had a lease he could also move into the house?  We have a friend that did this.  He bought a foreclosure and the guy would not get out... the owner rented out rooms in the home (in PA) and the guy left, because he was annoyed by the new "tenants".  Any and all advice please!  Thank you!  Again, New York laws would need to be considered with any answers!  Thank you!!  :)

[Brian Truman]

Hi @Renee B.

I see that this is your first post.... am sorry about the subject matter, but you are in the right place to meet folks that can give you advice.... but please remember that you should seek the advice of an attorney as well. 

With that said.... yep.... sounds like extortion. Have you thought about going there and offering cash for keys? I hate to say this, but, if you ever buy another property like this.... the best thing to do is just start the eviction process, even if they are getting out. Here in the state of Washington, there is a mandatory 20 day waiting period (at least that is what it was, the last time I bought an auction property) before you can start the eviction process. Hope you get them out soon, though. Cheers. 

Welcome to BP, by the way....

[Jay Hinrichs]

for these reasons we rarely buy a home on auction .bomb that is occupied..   eviction is what you need to do.

I have had the homes by the time I got possession complelty stripped to the studs.. you can sue.. but if they have no money you just throw money away.. buying auction properties has RISK .. your learning this first hand now.

[Darren Budahn]

Get an attorney and start evicting immediately

[JD Martin]

Really the only advice at this point is to retain a good lawyer and get the process going of getting this guy evicted. You need professional guidance because everything you did up to this point - other than getting the eviction process started - has been more or less the wrong answer. Being OK with someone just hanging out in the house because he has nowhere else to go? Being forced to buy back your own parts of the house? Crazy. 

[David Weintraub]

Go live in there with him.

[Renee B.]

Hi David - that's my question.. .can we send someone to go live with him?  Will the police make our friend get out of the house even if we give our friend a lease?  I also wanted to know about the damage he could cause... I heard there are laws in place that could put the guy in jail if he trashes the house?  Also, we bought the house for 250 and it's worth 450, so yes, mistakes were made, but we will be fine.... thanks everyone!

[John Thedford]

@Jay Hinrichs auction.bomb...LOL!

It sounds like cash for keys has already been offered by the attorney..15K! Sounds like there are two rats in this deal: the former owner and the attorney. Get that eviction filed. Document as best you can. If you can get the previous owner to put any of his extortion comments in writing or email save those. Deals like this are not common but they do happen.

I would try one more time to reason with seller. Talk to him face to face. Explain that $5000 would help him move and avoid him having a negative impact on his credit. Explain to him that 5K is a LOT more than he will receive if ordered to leave the property..in fact...he won't get anything. Good luck.

[Renee B.]

Hey John!  Thanks for the comments!  The previous owner hired a lawyer that contacted my husband to tell him that the deal is not $15K, not the previous $7500 we were offering him.  He also holds the original plans/blueprints to an addition that was added to the house - it was all town approved but the final inspection has not been done.  I would imagine the town will have the proper documentation and we would only need to do a final inspection.  He thinks he has our backs against the wall.  At this point it is not the money, but the sheer fact that he is trying to extort us for so much more then we will ever pay.  We already have a good lawyer that we hired yesterday.  I just had some questions and we can't get him until Monday.  I had heard that one of my friends had a similar problem in PA and they had friends move into the house while the old owner was still there.  Brilliant idea, but I wonder if that would fly in NY.  The new owner gave the friends a lease and they moved right in.  The previous owner was annoyed and fed up with the new "roommates" and finally left.  Brilliant!  ha!

[Wayne Brooks]

Your friend got away with moving people in only because the prior occupants were ignorant, and didn't know they likely could have the new owner by the short hairs.  For your situation, it's a common one, I'd get I. The house to document current condition.....You own it, and everything "built in" or permanently attached.  You may have to pretend like you are agreeable to being extorted to get in, then document everything you're concerned about...ac, fireplace, etc.  Then, drop the hammer on them/their attorney as to criminal prosecution for destruction/theft of Your property. At this point, screw the cash for keys, it will constantly become a moving target/changing conditions, and take the hard ball, scorched earth approach.  I have done cash for keys before, but if the carrot doesn't work, don't hesitate to use the biggest stick you can find, and swing it hard.

[Judy Parker]

The day you closed on that house, you should have proceeded with eviction.  He's a Squatter.

Get him out of that house immediately - do not cut any deals with him, period.

[Odie Ayaga]

You have a friend willing to move in with someone who is actively trying to extort you? Not sure how much I'd agree with moving a friend in with a criminal...

[David Weintraub]

@Odie Ayaga Live a little! :-) 

[Letitia Harris]

What has happened with this situation??