Sherriff Sale Auction : Cash for Keys

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Sherriff Sale Auction : Cash for Keys

Karah Katenkamp
Rental Property Investor · OH · Member since 2021 · 5 posts · 4 votes

I just bought my 1st property on a sheriff sale that is actually occupied. I am in Ohio and its freezing. I would like to make sure that once she leaves, the heat does not get turned off and the pipes freeze. Does anyone have any suggestions on strategy? I have thought about giving cash for keys. Do I have a legal right to do that before the confirmation of the sale? Thanks in advance! 

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Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
5y

@Karah Katenkamp have you spoken with her yet...it's usually best to try and build rapport in these situations...losing a home would suck and upsetting the occupant could have dire consequences. Offering cash for keys is a good start...we would normally explain the alternative scenario in detail...meaning that once the sale is confirmed and the deed is transferred you become a landlord...this is a civil issue and the police will not get involved...meaning you file eviction as a last resort. The eviction lawsuit is a permanent mark on her background and probably prevents her from being able to rent anywhere decent ever again...

I would consider a couple of backup plans if she refuses, like getting a lease in place...do some more research on squatters and squatters rights in Ohio...its horrifying, but valuable to understand the process.

How long has she lived in the home before the sale?

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    5y

    @Karah Katenkamp I see nothing wrong with offering money for someone to leave their house. They don't have to agree. You are not forcing them to leave.

    The only possibility is "interference with contract".  If you ask a tenant to break a lease with someone else for example, you can be liable. I just don't see that being applicable here. There may be other specific state of local laws restricting this but I doubt it.

    PS:  You could call the utility company and put the utilities in your name to make sure they get paid. But that won't stop an occupant from leaving with the heat off. 

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  • Karah Katenkamp
    OP
    Rental Property Investor · OH · Member since 2021 · 5 posts · 4 votes
    5y

    @Ned Carey Thank you! It is owner occupied. I don't think that will be an issue for "interference with contract". I did think about changing the utilities into my name.. However, I am afraid she will turn them off as you mentioned. Thank you for your thoughtful reply! I'll give her an offer and see if she is willing to make the move. 

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Karah Katenkamp have you spoken with her yet...it's usually best to try and build rapport in these situations...losing a home would suck and upsetting the occupant could have dire consequences. Offering cash for keys is a good start...we would normally explain the alternative scenario in detail...meaning that once the sale is confirmed and the deed is transferred you become a landlord...this is a civil issue and the police will not get involved...meaning you file eviction as a last resort. The eviction lawsuit is a permanent mark on her background and probably prevents her from being able to rent anywhere decent ever again...

    I would consider a couple of backup plans if she refuses, like getting a lease in place...do some more research on squatters and squatters rights in Ohio...its horrifying, but valuable to understand the process.

    How long has she lived in the home before the sale?

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    oh, @Karah Katenkamp once you take possession and become a landlord, landlord-tenant laws apply...so, worst case if she damages the property or leaves utilities off she can be found in repeat violation of lease terms (if you can get her to sign one)...you can also post 24-hour notice to enter to inspect and make repairs...if she refuses to leave you could theoretically post a notice every day and check on the condition of the property every 24-hours...

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Karah Katenkamp:

    I just bought my 1st property on a sheriff sale that is actually occupied. I am in Ohio and its freezing. I would like to make sure that once she leaves, the heat does not get turned off and the pipes freeze. Does anyone have any suggestions on strategy? I have thought about giving cash for keys. Do I have a legal right to do that before the confirmation of the sale? Thanks in advance! 

     Congrats on the purchase! I have a list of Ohio attorneys that I can refer you to.

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  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Karah Katenkamp I would wait until the sale is finalized before offering cash for keys. Do you have an idea when she plans on moving? It may be warm by the time she moves but I would just continue to monitor the house.

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  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Karah Katenkamp:

    I just bought my 1st property on a sheriff sale that is actually occupied. I am in Ohio and its freezing. I would like to make sure that once she leaves, the heat does not get turned off and the pipes freeze. Does anyone have any suggestions on strategy? I have thought about giving cash for keys. Do I have a legal right to do that before the confirmation of the sale? Thanks in advance! 

     Hi Karah, congrats on the purchase. If you own the property, you can offer cash for keys. I would also have the tenant turn the heat up before they vacate the property. 

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  • Karah Katenkamp
    OP
    Rental Property Investor · OH · Member since 2021 · 5 posts · 4 votes
    5y

    @Jaquetta T Ragland I haven't made contact with her yet. It is a delicate situation and I do feel bad for anyone that has to leave a home they purchased - even considering the situation. Currently, It is a owner occupied duplex with an apartment over office space. I'm considering putting the upstairs utilities in my name before she leaves and leaving a letter letting her know and asking her leave the thermostat on & to contact me if she has any questions. I know she has talked to the local sheriff several times asking questions how to navigate the situation and that she has been packing. 

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  • Karah Katenkamp
    OP
    Rental Property Investor · OH · Member since 2021 · 5 posts · 4 votes
    5y

    @Brandon Sturgill I have not made contact with her yet. The purchase was just made yesterday. She is an owner occupant in this commercial / residential duplex. I do not want to hold her as a tenant as she wasn't able to make the payments on the house let alone rent. She has lived there for about 17 years. I am considering leaving her a letter so she has my contact information, but concerned about that opening up a whole new pandoras box. It sounds like she's packing and planning on leaving. Because its a sheriff sale, I would like to get an idea of the layout and condition asap to begin construction plans. 

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  • Karah Katenkamp
    OP
    Rental Property Investor · OH · Member since 2021 · 5 posts · 4 votes
    5y

    An update: I left her a letter the day after the auction with my name and phone number. I did not offer her cash for keys. She gave me a call the next day. We had a great conversation. She told me all about the details of the house and asked to stay until just before confirmation of sale. Hopefully all is well. I feel much better having her direct contact information if need be. 

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    Sounds like a positive outcome @Karah Katenkamp

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  • Brandon Leffler
    Rental Property Investor · Stockton, CA · Member since 2020 · 35 posts · 22 votes
    5y

    @Karah Katenkamp

    so even if you just purchased it, you can’t get the tenants out because of the moratorium?

    0Reply
  • Carol Kilpatrick
    Member since 2021 · 12 posts · 8 votes
    5y

    You are on this, heat will need to be on if pipe freezes for insurance claim, love prevention. 

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