I found a multifamily property with 3 unit on MLS and it is up for Auction. Through Spokeo, I just found out it has occupying tenants probably with fixed rents/low rents. Would I have to wait until their leases end to remove the current tenants to do a full scale renovation. Any other way to relocate occupants currently in a foreclosure property. Is it even possible for a bank to take a home with existing tenants?
Another thing, the last time it was purchased was in 2009 for $500, which did seems strange because its neighboring units were 200k-300k.
Something is missing here..
Updated over 2 years ago
A bank can absolutely take possession of a home or apartment building with tenants. Ownership can change while the tenants remain, think of their lease as a contract with the building itself rather than who holds title. I know in some California rent-controlled cities, tenants are often "bought out" of their lease which is a monetary incentive to vacate. As your bio and post are lacking what geographical area you are considering buying this property in, nobody can really give accurate guidance, just some general. Sometimes a property is transferred from a trust to and individual or vice-versa, between spouses, etc. which causes an absurdly low transfer price.