Tax Foreclosure Acquisition, Previous Owner Eviction, Investment Protection

Greensboro, North Carolina
General Real Estate Investing
8moFollow

Tax Foreclosure Acquisition, Previous Owner Eviction, Investment Protection

Jessica Hood
Flipper · Winston Salem, NC · Member since 2009 · 159 posts · 32 votes

Hello! We are closing on a North Carolina county tax foreclosure auction purchase. I am seeking some advise for our particular situation.

The previous owner that was foreclosed on is still living in the property. He has barricaded the long steep driveway (on a mountain) with a barrier of 4 vehicles.  It is clear that he has no intention of leaving any time soon. Satellite imagery and camera footage show that this may be a hoarder situation, as there is garbage all around the yard.  He has a long history of being sued over the last 15 years by other people for what we suspect was shady mechanic work.  We suspect he may not be in the best mental state.

We are considering offering keys for cash, to see if that will speed up the process of getting him out without having to go through the eviction process.  We don't want to be heartless to his situation and don't mind offering something.  But we also do not want to make the situation worse when maybe we should just go straight to the legal process.  What are your thoughts on offering cash for keys vs going straight to eviction filing?

We have purchased several foreclosures in the past, but this is the first where the original owner is still living there, so this will be a new experience.

My understanding in NC is that we have to give 30 day written notice to vacate, then file for formal eviction?  Is that correct?  Or can we file for writ of possession?  There was nothing in the foreclosure case that specifically stated we could forego that eviction process.  I know in some NC foreclosures, they do explicitly state that that particular case could skip that process and immediately evict with writ of posession.  Our case had no mention of that.  Is my understanding here correct?

Have any of you filed for evictions yourselves in NC?  Represented yourselves?  If so, how was it?  

We are also concerned about severe damage he may do to the home to be spiteful (burn it down or something crazy) before we can get him out.  That is another reason we thought cash for keys might be good incentive to not make him feel vengeful.  Are there any ways to protect/insure the property from the point it is legally ours, to the point that we can get him out?  Are there any high risk policies or anything like that?  Since he has the drive barricaded and has dogs, I do not think an insurance assessor could get up there to start a policy.  Anyone have experience with this?

Any other words of wisdom for us?  Thank you in advance!!

0Reply
132 views

Most Popular Reply

David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
7mo

I always say that "Buying property at Tax Sales is the most dangerous way to buy real estate."

2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Aleka DeGraafBusiness Member
    Greensboro, NC · Member since 2023 · 55 posts · 11 votes
    8mo

    The Legal Reality: It’s not "Trespassing" In my experience, you cannot file a trespasser action. Because the occupant is a former owner, North Carolina courts generally view this as a holdover situation. If you call the police, they will likely tell you it is a civil matter and refuse to remove him without a court order.

    Writ of Possession vs. Eviction

    • The Shortcut: Since this was a tax foreclosure, you usually don't file a new "Summary Ejectment" (tenant eviction) lawsuit. Instead, you petition the Clerk of Court for a Writ of Possession under the existing foreclosure case.
    • Notice Period: The 30-day notice is typically for tenants. Former owners usually lose their right to possession the moment the deed is recorded and the 10-day upset bid period ends. However, many investors still give a 10-day "demand for possession" just to be safe.

    Disclaimer: I am not an attorney, and this is not legal advice. Laws regarding foreclosures and evictions can vary significantly by county and specific case details. You should consult with a North Carolina real estate attorney to confirm the exact filings needed for your local Clerk of Court.

    [email protected]802-355-0277
    Fortified Dreams Property Solutions 4.5132 Reviews
    WebsiteView Page
    0Reply
    • Jessica Hood
      OP
      Flipper · Winston Salem, NC · Member since 2009 · 159 posts · 32 votes
      8mo
      Quote from @Aleka DeGraaf:

      The Legal Reality: It’s not "Trespassing" In my experience, you cannot file a trespasser action. Because the occupant is a former owner, North Carolina courts generally view this as a holdover situation. If you call the police, they will likely tell you it is a civil matter and refuse to remove him without a court order.

      I had actually just discovered information about the Writ of Possession before I saw your message.  Thank you for confirming what I had just read elsewhere.
      0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    8mo

    Are you past the point of no return? This is not a good situation and while I have gone to great lengths to make a buck this would be a hard no for me. If you are intent on going through with it I'm sure others who can offer strategies will respond. Good luck with whatever you decide. 

    0Reply
    • Jessica Hood
      OP
      Flipper · Winston Salem, NC · Member since 2009 · 159 posts · 32 votes
      8mo
      Quote from @Jules Aton:

      Are you past the point of no return? This is not a good situation and while I have gone to great lengths to make a buck this would be a hard no for me. If you are intent on going through with it I'm sure others who can offer strategies will respond. Good luck with whatever you decide. 


       Thank you for your opinion.  I do realize this is a risky situation and we have thought long and hard about it prior to getting to this point.  The price of the property is worth the risk to us and we do understand all of the horrible things that could happen during this process.  So we will proceed anyway.

      1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    8mo

    With the deed you should be able to get property insurance.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    7mo

    I've bought hundreds of properties at Tax Sale, but NOT in NC. As soon as you get the deed, try to get insurance for the value of the building, you may need to shop around to get a policy.  Besides the building value, you also need a large liability insurance policy.  Try cash for keys but in the hundreds of Tax Sale properties that I've bought, I can't recall a single one where there was cash for keys.

    In one case we bought a property across the street from a person living in a shack.  His property was not the tax sale property, but he had built a gate across the public road with an alarm that went off in his house/shack, when the gate was opened.  We we opened the gate to get to our property the gun slinger came out to greet us with two 6 shooters on his hips.  He said we were trespassing and that he owned the road.  He didn't pull the guns on us but we left to not cause a confrontation.  We ended up waiting him out, eventually he passed away and the municipality tore down the shack, obviously unpermitted shack and the gate. 

    At another property, I took the family to see our new acquisition.  It was a house on a dirt road a mile off the paved public road.  The former owner shot here husband to death and got off claiming it was a hunting accident.  When we got there a neighbor came out with a shot gun and asked what we were doing there.  I told him why we were there and he retreated, but we never had a relationship with him.  In this municipality there was no police force and the state police were the enforcement there.  The people in this remote mountain area seemed to me to be there because they didn't want any government involvement in their life.  This same guy also went to the courthouse and told the assessment people that he would shoot them if they ever came to his property.  They took it serious and when I appealed my assessment they would not come to my property because of his threat.

    Be careful, its dangerous out there.

    0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    7mo

    I always say that "Buying property at Tax Sales is the most dangerous way to buy real estate."

    2Reply
  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    7mo

    Cash for keys beats eviction every time - carrying costs plus damage risk isn't worth it. Document everything from public areas first. What amount do you think would motivate him to leave peacefully?

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 778 posts · 573 votes
    7mo

    You are in “protect the asset first, feelings second” territory now.

    Tax foreclosure with an owner still in possession is not a normal landlord situation. It is closer to a post foreclosure ejectment, and the risk profile is higher.

    A few structured thoughts:

    Get a local NC real estate attorney involved immediately

    Not a generic eviction mill. Someone who regularly handles foreclosure possession and writs in your specific county.

    In North Carolina, whether you can move straight to a writ of possession versus filing a summary ejectment often depends on:

    • The language in the foreclosure order

    • Whether the occupant is the former owner or a tenant

    • Whether the foreclosure was judicial or non judicial

    • County level practice

    If your order does not explicitly authorize immediate writ of possession, assume you will need to follow the standard possession process unless counsel confirms otherwise.

    This is not the file to self represent on.

    Cash for keys can work, but structure it tightly

    In volatile or unstable occupant situations, cash for keys often reduces:

    • Property damage risk

    • Delay risk

    • Legal cost escalation

    But only if done correctly.

    Key principles:

    • No money up front

    • Written agreement

    • Funds exchanged only after full vacancy and possession confirmed

    • Law enforcement present if needed

    • Property walkthrough immediately at surrender

    If he appears mentally unstable or combative, you may want an attorney to draft the agreement and possibly have a third party involved.

    You cannot insure intent, but you can insure risk

    Call a broker that handles vacant and distressed properties.

    Ask specifically for:

    • Vacant dwelling policy

    • DP3 or specialty surplus lines coverage

    • Fire and vandalism coverage

    Be transparent that it is currently occupied by a holdover former owner. Some carriers will decline. Some will write with higher premium.

    If access is limited for inspection, many carriers can bind temporarily with exterior underwriting and satellite imagery, especially in higher risk placements. Work through a broker, not direct.

    Document everything

    From the moment title transferred:

    • Photograph exterior regularly

    • Maintain written logs

    • Do not trespass or self help

    • Do not block utilities

    If you fear imminent damage, speak with counsel about emergency relief. But do not escalate on your own.

    Risk reality check

    In hoarder or unstable cases, the highest damage risk is usually:

    • Interior destruction

    • Water damage

    • Appliances removed

    • Fire risk

    Cash for keys, even if it costs you several thousand, can be far cheaper than a contested eviction plus a destroyed house.

    Emotional positioning

    You are not being heartless by using the legal process. You purchased a legal interest in the property.

    Be respectful. Be calm. Be firm.

    Do not threaten. Do not argue. Do not negotiate verbally without documentation.

    Given the barricaded driveway and dogs, I would not personally attempt informal confrontation. Have counsel advise first.

    This is not a standard landlord problem. Treat it like a litigation and asset protection issue from day one.

    The cost of a good attorney here is almost certainly cheaper than one bad mistake.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free