Experience with buying "Occupied" homes from Auction sites?

Question

Hello community!

I am wondering if anyone has bought any Occupied properties from auction sites recently. Hudson and Marshall, Auction.com, Hubzu, all seem to be selling a lot of homes that have just been foreclosed on, with the redemption period 4-5 months out. You are buying these houses site unseen.   Any history or experience is greatly appreciated!

Any background info on how the foreclosure process affects this experience is appreciated as well.

Thanks!

Ron Ramsden · Answer

My last eviction in Massachusetts took 5 months for them to move via the court, left the place in shambles and was granted a repayment plan by a mediator of $ 50 per month till balance is paid off.... They still owe me $ 3600 this could take a while.

I would shoot for the unoccupied homes if I were you

Craig Walkinshaw · Answer

I think your experience could vary widely. I bought an occupied home from auction.com. After the sale, I went over and knocked on the door. I was polite and told them that I now owned the home. They said they weren't aware that it had sold. Whether they were truly oblivious to the situation or not remains to be seen. Anyway, I gave them a couple of weeks to move out and they left on time without any hassle. They did take every appliance and left some of their garbage furniture for me to deal with, but based on other stories I've seen, I got pretty lucky.

Tom Gimer · Answer

You may get lucky and find an "occupied" property vacant.

If not, you'll get your best results offering cash for keys for a property delivered vacant in broom clean condition on a date certain.

If you need to evict you may save some money vs. cash for keys but that definitely does not mean it's the better strategy financially. Think of all the damage an occupant can do vs. one that is getting paid a fair price to pack and leave quietly.

Greg H. · Answer

@Ginger Unger

The issue with a quit claim in Texas is the difficulty in obtaining title insurance. Title companies typically do not want to insure them. If the sales price is high enough, First American title might do it

Ginger Unger · Answer

Has anyone bought from Home Opportunity and JP REO ?  They only offer a Quit Claim Deed, seems like a big risk, no clear title.  Can anyone give me advise on Quit Claim verses a warranty deed on these REO purchases.  Thanks in advance.

Douglas Snook · Answer

It is going to vary state by state so be some what familiar with the laws in the area you are looking at. It may also vary as to whether it is occupied by the former owner or a tenant of the former owner.

Tom Gimer · Answer

@Thomas S. Suit and tie investor... I like that.

Yes, in the interests of full disclosure, Thomas is right... there are more options.

I have an acquaintance in DC who does quite well using a method Thomas would certainly approve of. He has a few larger folks show up dressed officially, crowbar and other suitable devices in hand. They gain entry by any means and announce "It's moving day." He has an incredible success rate for obtaining possession.

Thomas S. · Answer

If you are a suit and tie investor you may not be cut out for this line of investing. If on the other hand you don't mind getting your hands dirty and are prepared for you and a few friends to show up and persuade occupants to leave you may do fine. Contact them and find out their intensions, promise nothing, do not allow them any more than a couple of weeks to move out. If they resist show up with  all proof of ownership with you, put them out, change the locks, load everything quickly onto a trailer and take it to a storage facility.

Most will not take cash and it will be a long drawn out process to evict. I prefer the more direct and swifter approach. It may not be strictly legal but what they are doing is definatly not legal.

Experience with buying "Occupied" homes from Auction sites?

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