Question about buying a home during the redemption period

[J.R. King]

I have a house about to go under contact right now.  It was forclosed on by the bank, and is now in the redemption period, until the end of April.  The owner is willing to sell the house to us, but wants to stay in the house until April, so that they aren't moving in the winter.  What do you think the best way to handle this offer would be?  Pay the bank now directly, and give the seller free occupancy until April? Or have the house under contract for the next few months, and then pay the bank directly in April when the seller is about to move out?  I don't want to pay the bank off, and then have the seller break the contract. But I also don't know how long it takes for the banks to process the payment to clear the foreclosure.  

[Lauren B.]

Preference is to Close with unit vacant.

Perhaps suggest that you were willing to give them as much time as the bank allow before close, however, I wouldn’t willingly allow them to stay after close unless you’re going to lose a great deal over it.

If they stay;

- Be prepared to evict them, And be able to cover a few months after the time you agreed to move out.

- if they stand to make any money out of the deal, make sure you hold it in escrow until the property is delivered vacant.

- Make sure you have a post closing occupancy agreement with a very strong daily penalty for each day they overstay their welcome.

- Make sure in your post occupancy agreement that you note that customary evection procedures will be available to you should They overstay their welcome. If this was in North Carolina and I did this, I would also make sure it’s my post closing occupancy agreement had wording that served as proper notice so you don’t have to give notice and can go right to eviction.

Consult a lawyer for the wording and further advice (not a lawyer, not legal advice).

Ask me how I know this.