This Squatter is a DOOZY. Check this out.

[Brock W.]

Hello All-

So I recently purchased a condo (2/2 1k sq ft ground floor apartment) at foreclosure auction here in Wilmington NC.  It  was quite inexpensive so I feel good about that, BUT  I have two concerns and would love some perspective and insight.

1- The prior owner of legal record has died.  Her son "lives" in it and according to the neighbors refuses to leave.  He has ignored eviction warnings in the past and despite having his water and electric disconnected he maintains some measure of residency, as does his large pit bull type dog.  Evidently, he buys retail water and trucks his waste out the door in a plastic bucket.     This is not a tenant/landlord circumstance so I'm not sure what my legal obligation is (looking into that now).   The dog complicates breaking in and changing the locks.  I am considering a "Pay him to leave" scenario as well but wondering what the going rate and structure of that might look like.     

2- This is an ongoing problem, an as a result, the HOA dues in this condo complex are way behind. What, if any ways have you all dealt with, mitigated this issue? The condo board seems desperate to get him out, can that be used to my advantage vis a vis the looming HOA lien on the property? Can I negotiate the terms of the lien repayment.

Is hiring an attorney worth it?  If so, what type of attorney am i looking at?

Thanks for reading-  I appreciate any advice.  
  

[Bjorn Ahlblad]

Cutting services and changing door locks, no matter how tempting, is a definite no-no. Google to find a local REI Association. Membership is cheap and they will have attorneys on staff. If you have cut power and water I recommend restoring those services. Crazy? Yes I know. All the best!

[Matt Devincenzo]

This is normal SOP on foreclosure purchase, so I'm not sure what you may have expected differently. You'll need to file for eviction/ejectment and then wait until the courts provide the necessary support to get him out. Do not break in and change the locks, that will 100% torpedo your entire case for his eviction/ejectment. Until the courts say otherwise treat him as a tenant in the sense that you need to wait and follow the court process until he is out. 

On the HOA lien, I'd negotiate paying only the back dues if possible. Ultimately though if you pay nothing then they'll foreclose and you lose the property. So it may be in their best interest to waive nothing and force you to pay up.

Overall it sounds pretty standard for foreclosure auction type deals...

[John Underwood]

Call code enforcement to temporarily condemn property since it is uninhabitable without utilities turn on.

Then call sheriff to remove squatter from condemned property. 

Then change locks and turn on utilities in your name.

Call code enforcement to remove condemned sign.

I have used this tactic with great success in the past.

[Brock W.]

Bjorn-  Just to clarify.  *I* didn't turn off the water or power -  Someone else did prior to my purchase.

John Underwood-  Interesting angle!  I will do some research.  Thank you.

[Greg M.]

First off, not a squatter. The person is a tenant. Treat them as such or you can get screwed.

What is your landlord/tenant area like? If pro-tenant, try cash for keys. Otherwise, file for eviction. 

As for the HOA, since you own the place, you are responsible for the dues. Your leverage went away when you became the owner. You can absolutely try to negotiate with the HOA. Offer to pay 100% of dues owed if they waive all late fees and see if they will forgive/reduce any legal fees.

[Blake Novotney]

Tough situation, wishing you the best of luck! I am also here in Wilmington and while I don't have any advice for you on the tenant removal aside from what you and others have said, once they are out let me know if you need any contractor referrals or anything like that.

[Brock W.]

Quote from @Greg M.:

First off, not a squatter. The person is a tenant. Treat them as such or you can get screwed.

What is your landlord/tenant area like? If pro-tenant, try cash for keys. Otherwise, file for eviction. 

As for the HOA, since you own the place, you are responsible for the dues. Your leverage went away when you became the owner. You can absolutely try to negotiate with the HOA. Offer to pay 100% of dues owed if they waive all late fees and see if they will forgive/reduce any legal fees.

Hello Greg- Thanks for the response.   When you say "the person is a tenant" I assume you are saying "treat them like a tenant" for the sake of the process (?) but in point of fact they are NOT a tenant.  There's nothing binding us, we've never met, I dont know their name. No one has signed anything remotely like a lease.   I own the property and they are unlawfully occupying it, Yes ?  

[David M.]

Have you made contact with this tenant?  It sounds like you are basing your assumptions off statements from a third party.  First thing I would do is to talk with the tenant.  Many times I have found that a reasonable attitude and calm conversation can work well in achieving your goals.

I would discuss helping this tenant with the cost of relocating and see how they respond.  

[Greg M.]

Quote from @Brock W.:

Quote from @Greg M.:

First off, not a squatter. The person is a tenant. Treat them as such or you can get screwed.

What is your landlord/tenant area like? If pro-tenant, try cash for keys. Otherwise, file for eviction. 

As for the HOA, since you own the place, you are responsible for the dues. Your leverage went away when you became the owner. You can absolutely try to negotiate with the HOA. Offer to pay 100% of dues owed if they waive all late fees and see if they will forgive/reduce any legal fees.

Hello Greg- Thanks for the response.   When you say "the person is a tenant" I assume you are saying "treat them like a tenant" for the sake of the process (?) but in point of fact they are NOT a tenant.  There's nothing binding us, we've never met, I dont know their name. No one has signed anything remotely like a lease.   I own the property and they are unlawfully occupying it, Yes ?  

I mean that according to the law they are a legal tenant. They have clearly established tenancy at that residence. 

Your lack of meeting them and lack or a lease does not mean they are not a tenant. Neither of those are a requirement to establish tenancy. 

[David M.]

@Greg M. How so in NC?

[Greg M.]

Quote from @David M.:

@Greg M. How so in NC?

The guy moved into the unit while his mother owned it and has lived there for a while. What else would he be? 

[David M.]

@Greg M.

So, in NC if you purchase a property at a sheriff's auction, the residing family members are automatically your tenants?  How and what elements of legal tenancy are established in this transaction?  I don't understand.

[Shiloh Lundahl]

Have you considered creating an actual lease for a bigger, scarier man with 3 pit bulls?  

I’ve recently heard that a woman was able to get a squatter out of her rental property by creating a lease for her adult son who waited outside the rental property until the squatter left that day and then went into the house and moved everything out, changed the locks, and told the squatter when he came back that he (the son) had a an actual lease agreement with the owner and had the right to be there and if the squatter didn’t get off the property he would be calling the cops. That seemed to work for her.

[Timothy Howdeshell]

Quote from @Brock W.:

Hello All-

So I recently purchased a condo (2/2 1k sq ft ground floor apartment) at foreclosure auction here in Wilmington NC.  It  was quite inexpensive so I feel good about that, BUT  I have two concerns and would love some perspective and insight.

1- The prior owner of legal record has died.  Her son "lives" in it and according to the neighbors refuses to leave.  He has ignored eviction warnings in the past and despite having his water and electric disconnected he maintains some measure of residency, as does his large pit bull type dog.  Evidently, he buys retail water and trucks his waste out the door in a plastic bucket.     This is not a tenant/landlord circumstance so I'm not sure what my legal obligation is (looking into that now).   The dog complicates breaking in and changing the locks.  I am considering a "Pay him to leave" scenario as well but wondering what the going rate and structure of that might look like.     

2- This is an ongoing problem, an as a result, the HOA dues in this condo complex are way behind. What, if any ways have you all dealt with, mitigated this issue? The condo board seems desperate to get him out, can that be used to my advantage vis a vis the looming HOA lien on the property? Can I negotiate the terms of the lien repayment.

Is hiring an attorney worth it?  If so, what type of attorney am i looking at?

Thanks for reading-  I appreciate any advice.  
  

 That's definitely a rough start to the property, but not an unusual or uncommon circumstance. 

First step is to meet with the tenant. You''ll get a good feel for who you're dealing with. If the person seems violent, unhinged or uncooperative I would defer to normal channels, aka. formal eviction and having the sherrif remove them. They may be a tenant, but without a long term lease they're probably on month to month. You'll want to look up the tenant rights in your state/city to understand the timeline to vacate a month to month lease. 

If they seem agreeable and friendly, cash for keys is a tried and true strategy. It is probably cheaper and certainly faster than formal eviction. 

Best of luck! 

[Brock W.]

I appreciate everyone who has lent their opinion and perspective.   Pleased to announce that weve resolved the situation with a cash for keys.  We settled on a deal where the faster he got out the more i was able to pay and he moved out in approx 5 days for $400.   Now the cleanup fun starts.  

Thanks Everyone!

[John Underwood]

Quote from @Brock W.:

I appreciate everyone who has lent their opinion and perspective.   Pleased to announce that weve resolved the situation with a cash for keys.  We settled on a deal where the faster he got out the more i was able to pay and he moved out in approx 5 days for $400.   Now the cleanup fun starts.  

Thanks Everyone!

 congrats!