Have you purchased an OCCUPIED foreclosure?

Question

I'm looking at purchasing a pre-foreclosure at auction-  The property is currently occupied by the current owners going through the pre-foreclosure process.   Any insights as to the best approach towards prior owners if you successfully bid on a property?  Is it best to try and first negotiate with them and see what their goals are?  How do you reach out to them?  It's such an emotionally charged thing it seems risky to show up alone on their doorstep-

Bob Prisco · Answer

@Hen Ley YES about 200, Simply knock on the door and see if they want to stay and rent most will. If not simply evict them  ( or offer them some cash to leave, )  after you close KEEP IT SIMPLE

Good luck

Kevin Sobilo · Answer

@Hen Ley, I bought an occupied property though a tax sale process here in PA. It was occupied by a "squatter'. I believe he started as a tenant of the previous owner who killed themselves several years ago. This person had been in the property for 14 years.

I got advice from my lawyer but handled it myself.

I went to the door and spoke to the person explaining the situation. I gave the person time to move, but also told them I would post a notice on the door so that if they did not follow through with what we discussed that I could immediately take action to evict.

The notice was basically a pay or quit notice, but at the beginning of it, it explained how I had taken ownership and that the occupier owed me $XXX rent from that date. It also stated that this was market rate rent.

So, if the person didn't pay or leave, I could evict them as a defacto tenant. If they DID pay, they would become a month to month tenant whom I could give a 30 day notice to vacate.

This person did leave peaceably, but I did give them a couple short extensions on the time frame. They called and thanked me when it was done because they appreciated that they were treated fairly and with consideration to their situation. So, it all worked out.

Account Closed · Answer

I have several times. the "eye to eye" route above works, i used cash for keys for a couple of them.

When that didnt work, i had to evict. The process is different than for a normal eviction.

In this state (ohio) one has to file for a writ of possession (different from writ of detainer) with the foreclosure court case instead of a new civil eviction case.  no court hearing, just the sheriff posts the GTFO letter on the front, and gives them 30 days to get out. At the end of the 30 days the sheriff checks for vacancy. If they are still there the sheriff schedules the moveout and you have to bring some muscle on that day. Havent gotten to that part yet, just the sheriff thing was enough.

Point to explaining the Ohio law is that it might be a special process than a normal eviction in your state. An attorney or possibly the sheriff or court clerk can tell you what needs to happen.

Lynnette E. · Answer

I bought a property that was occupied.  During escrow and before the bank 'had no knowledge' about the occupant.  At the close of escrow the bank's rep gave me his name and contact number.  The bank had rented to this guy.  A charity case best I can tell, registered violent sex offender against children, at $300 a month including utilities.  Why?  I have no idea!  Its not like he was a great tenant, house was trashed, broken furniture left, fleas, still treating to kill them this week.  Hoping they are gone now.

He left of his own accord.  I told him that his rent would be raised to market value--high level of market value for the condition of the house - in 30 days.  $700/month and he pays all utilities.

So he decided to move on his own, before the 30 days was up. He wanted no problems, and left when he said he would, just left all the broken junk.  He said that the house was furnished when he moved in.  He only took the bedroom furniture, everything else was left.  He moved into an furnished place.

City had the Spring clean up.  Could put anything out at the curb and they would take up to a ton with a large scooper truck.  So the neighbors picked through, taking the computers, hard drives, kitchen stuff and the city scooped up the rest.  Took a days labor to move the stuff out, and a lot of insect repellent on our feet and legs.

Aaron DiCaprio · Answer

Communication and trying to be fair is always a good start.  However, don't let them take advantage of you.  Speak with an eviction attorney so if you need to play hardball you can accelerate the eviction and ensure your cash flow doesn't take a hit.

Good luck,

Aaron

Isaac El · Answer

offer cash for keys ;)

Ron S. · Answer

If you win the auction, personally, I'd hire an eviction attorney for an unlawful detainer action and be done with it.

Have you purchased an OCCUPIED foreclosure?

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