I never, ever
David Cooper..Las Vegas Investor and Buyer's Agent for Bank Owned REO with Hugh Cash Flow
Best of luck,
Heather Paul, Realtor
If you intend to reside in home as your primary residence, you are still required to give a 90 day notice. In my state which ever laws (Federal /State/ Local) that offer the greatest protection to tenant prevail.
There have been several revisions including a two-year extension of the PTFA sunset date, now till 2014.
Federal case law now exists, unfortunately there are many involved in these foreclosure transactions that think the law does not apply to them and are learning the hard way. Tenants have resources and in our area some attorneys are now taking cases representing tenants on a contengiency basis.
Read the law and make sure you get your legal advice from lawyers who actually know the law.
When you purchase a property at foreclosure, there are many unknowns when there are tenants. This lack of information could land you smack dab in the middle of an Americans with Disabilities Act or Fair Housing issue.
Suggestions to turn off utilities or involve law enforcement targeting the tenant as trespassers can be counterproductive and very costly litigation and judgments against the landlord.
At the end of the day in these situations, I have learned that I get positive results by keeping the interactions with tenants as non-adversarial as possible. Speak to tenants with respect and understanding of the unfortunate position their previous landlord put everybody in. This may sound a bit silly, but ask the tenants how they are doing. I had a property where the renter was a tradesman and confided his family would have a financial hardship moving. Remember the original landlord is responsible for returning their deposit. We all know that security deposit is in the wind, and you don't want the tenant to lash out at your newly acquired property.
I have had deals where it actually made sense to keep the tenant, especially when comps in the area are still in rebounding and the rent produces a positive cash flow.
Tenants who have a portion of their rent subsidized by the HUD Section 8 program have saved my bacon during the slow economy. Many of those contracts were locked into higher pre-recession rental rates
Hope this helps.
You should ask the bank to provide you with any information they have on the tenant, including names of occupants and a certified letter stating the tenants have not paid rent to date. Once you have closed and are certified as the new owner you should now move to have an attorney process the necessary eviction documents.
This will not be complicated because they are in arrears. Additionally, the judge will move to evict them immediately because they have not paid any rent in such a long time.
If you are bidding on a property do you mean at a forclosure sale at the auction? There is no escrow with that kind type of deal. If it is a property that you are writing an offer on (as opposed to bidding) you should request that the property be delivered vacant at the close of escrow. If the bank is saying know then you will want your agent (if you have one) to negotiate cash for keys. This is a contract most realtors have access too. This basically gives them an incentive to move by a specified date (the amounts are usually 3k-5k). If they don't agree to it you will have to post notices and go through the process of evicition. If they don't move out and fight it you could be looking at as much as 6 months to get them out plus legal fees. It's tough but can be done. Since these are tenant's you will want to get an attorney involved documenting there lack of payment and leases if any. It's sticky but if they aren't going to pay rent you will need to evict them.
I am sorry your agent isn't being of much assistance. If they don't know the answer to your questions it's their job to seek out answers and guide you. Good luck.
The Carrabba Group
Keller WIlliams Hollywood Hills
One very helpful document to give you the basic laws regarding relocation and eviction is the Landlord Tenant Handbook which can be downloaded from the LA HUD website.
Our client decided to pull out of the escrow, we agreed with their decision because there are just too many things that can go wrong and could cause the buyer financial distress as the new owner. In our case the tenants were hostile which indicated a potential for a battle our buyer wasn't interested in participating in, they just wanted to buy the home.
Here are some resources from the web that you might find helpful:
Title VII, Protecting Tenants at Foreclosure Act of 2009
(The Helping Families Save Their Homes Act of 2009 signed into law on Wednesday, May 20th, 2009 (Pub. L. 111â€“22) provides a 90-day notice requirement and additional requirements for tenants in foreclosed properties)
Click here to read the full Public Law 111-22-May 20, 2009
Best of luck to you,
However once the property closes they could be consider trespassing you IN MOST instances whatever is left on property day of closing then it is buyers personal belongings.
You could have utilities turned off , you own the property notify utility company than no one turn on utilities unless you provide a code for access.
You don't own the property therefore have no rights till moment title company notifies you own it.
Direct Link : http://www.enotes.com/everyday-law-encyclopedia/trespassing
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors