Buying Foreclosed homes in southern California

3 Replies

I’m currently researching buying foreclosed homes in Southern California... One question Is in regards to occupancy.. once someone wins an auction how does one go about evection? Assuming someone is still living in the home of course...

@Simon Ruiz In CA, the first thing you do when you buy an occupied house at the foreclosure auction is to post a "3-90" notice. Do this a day or two after winning the auction. "3-90" refers to 3 day notice to vacate for an owner and 90 days notice to vacate for a tenant. You want to start the clock ticking ASAP, in case you have to evict.

I recommend to try to get an agreement with the occupant for cash for keys. We offer up to 1% of the property's value as a cash payment to the occupant in order for them to vacate the property in broom swept condition within 30 days. This saves a lot of potential headaches and further legal fees.

If you cannot come to an agreement for cash for keys, wait until you record your Trustees Deed Upon Sale before you start eviction. I recommend that you use an attorney that specializes in evictions to handle everything for you. An uncontested eviction will cost $500-$700.

Promotion
BiggerPockets
The one-stop-shop for REI
Find Local Home Improvement Pros!
Check out our network of trusted, local contractors for all of your home improvement projects.
Find a Contractor

The, "Protecting Tenants at Foreclosure" act was rekindled in 2018 so whatever you do, i'd suggest following the Federal rule. At a minimum, tenants get 90 days or, the remainder of the terms of the lease, whichever is longer, as long as those tenants are not the immediate family of the previous owner, or the owner. The lease has to be legitimate as well (Can't be intentionally under market to mess with the new owner). Not following those rules will land you on the wrong side of the Feds so, hence the suggestion to hire an attorney.