First Weber Group
Certified Distressed Property Expert
If these options do not appeal to you you could rent the property to them or evict them. If you intend on rehabbing the property for resale you will not get your money back quickly if you turn it into a rental.
One thing that a lot of lenders do is bribe the occupants to move instead of eviction. If the property is left broom clean and no damage is done lenders will give "cash for keys" in the range of 1000-3000 dollars. It saves money and time and gets you a property that has not had intentional damage done to it.
It's up to you if you want to take a chance on these previous owners.
Just be aware that the lender that foreclosed can go after those owners for any deficiency on the foreclosure sale. That could mean they will get a judgment and attach their wages. They may not be your best candidate to "flip" the house too.
Thanks for your post. First, I have to say that laws regarding foreclosure vary greatly from state to state. Here in California, once a home is sold in foreclosure, it is the property of the new owner or the lender, if the lender is the only bidder. However, in other states,there is something called a "redemption period" wherein the homeowner may reverse the foreclosure with cause.
In Florida, according to legal websites I've reviewed, it appears that there is not a redemption period, so the sellers cannot legally buy the house back unless you are willing to sell it to them. However, it also appears that there is a specific process involved in requiring tenants to vacate the premises, and that is a process that you should review with a qualified attorney or legal specialist in your area. You certainly have the right to the property, but to evict the tenants, you will need to follow specific procedures. Evicting the previous owners and simultaneously preventing them from further damaging the home is one of the inherent problems in buying foreclosure property at auction.
Grace Morioka, SRES
Area Pro Realty
Santa Clara County, CA
Right, you will have to start eviction.
When you bought it on the court steps, the home is yours.
However, there is a time lag before the bank lets the previous owner know.
You can always sell it back to them if they qualify for a loan, which most
likely they wont. Unless they have all cash it will be hard for them to get a loan.
Its a good idea to get an eviction service or property manager involved.