All Forum Posts by: James W.

@Elijah F.

Hi - I am flipping two Bank Owned/ REO properties right now - that were vacant when i bought them.

And now am again looking at a Bank Owned/ REO - but its still occupied. They call it "Newly Foreclosed."

The thing is, I may buy it from the bank "during" the redemption period, and wont know what to do when the owner shows up at my door with money in hand.

Despite the answers above - I do not know the short answer to it in New Jersey - that what happens in that case.

Can owner redeem it from me? What does he pay me? If he pays me what he owed, this can be a problem because I may have paid more to the Bank.

Even if I break even, its a loss of time and opportunity.

@Denise Evans

I wanted to vote twice.. but could only do one. 

@Denise Evans

i may be in NJ, but i really liked the detail of your response.

And this new article is even more relevant - thank you!

@Denise Evans

Hi Denise - wow - thank you so much!

@David Zamarron, @Phil Z.

You are right... I misunderstood. The liens are actually cleared upon the bank taking the title.

Thank you.

That leaves it down to Cash & Occupied REO's, or Financed & Vacant REO's :)

I assumed the Cash & occuiped come much below the Vacant & Financeable REOs, but the values is about the same.

For a difference as little as that,  I feel it's best to only look at Vacant and Financeable REOs - unless a Occupied offers a stellar deal.

Thanks @Charles Worth, @John Hickey

This - is exactly my understanding from googling around, and it turns out from your responses that the nightmare is more real than not.

Thing is, with such tight regulations and legal around rent stabilized tenants, we don't want to deal with this. Especially when ideally we're looking to fix and flip in a matter of 3-6 months max - who's got the time and energy to deal with this.

This is for flipping a occupied condo, one unit.

I have two flips going on vacant REO's, and they are coming along fine. This is going to be our first experiment with a occupied foreclosure. We're looking at units that are 200-300 grands under market, but are occupied - and we don't know if the occupant is a rent stabilized tenant.

As for cash-for-keys, I suppose if the occupant is not a rent stabilized tenant, it should be similar to eviction in other states where this law does not apply.

Question - is there a way to find out if the occupant is a rent stabilized tenant, or the owner itself?

Hi - 

Can someone explain how evicting occupants work in Hudson and Bergen Counties in NJ?

1 - Whats the basic procedure?

2 - Are there any rent control/ stabilization regulations making the eviction impossible, like in NYC?

3 - If the occupant is Tenant, how does it play out? Any tenant rules that may keep them there? Can the new owners atleast draw rent from them, if not evict the tenant?

Can someone share experiences?

Thank you.

Hi-

It seems there are these rent stabilized/ controlled properties in NYC/ Manhattan, where the tenant cannot be evicted by landlord. There're no exception clauses really, perhaps except if landlord is going to live there, and that too, with a pressing need.

1 - A quick Google says yes it is - but i'll still ask - is this correct?

2 - Does this mean not to buy occupied properties in NYC for a flip? Its never going to be evicted.

3 - Is there a way to tell if the Occupant is a Tenant, or the Owner? 

Evicting the owner should be different and perhaps simpler, I suppose?

Has anyone had experience in buying Occupied in NYC, and evicting the tenant?

Hi guys - 

What happens if the foreclosed owner tried to redeem the property that I have bought from the lender?

The property is no longer with the lender - so does he take it back from me?

Does the owner pay the lender, or me?

Does the bank return me my purchase price?

Thanks.

Thanks David.

My real concern is the back HOA back payments, and past taxes. They can be big numbers.

But I suppose they are cleared before or at closing - like you say.

So it does not seem like a concern now.

I do see the below language however in some Occupied REO's.

I wonder what the bank thinks might prevent Buyer from getting a Title Insurance then, when the Taxes and Liens are paid off by the bank anyway.

• Buyer may receive a Special Warranty Deed or equivalent if Buyer is able to purchase title insurance without delaying the closing. 
• If buyer does not purchase title insurance, buyer will receive a Quitclaim Deed or equivalent, with no express or implied warranties of title.