Unless you can get assurance, contractually, that the house will be vacant at closing, stay away. Especially if the tenants continue to pay their rent. Even though the owner is not paying her mtg the tenants are paying their rent to the party they are contracted with. Look at their lease and see what conditions remain. The bank will have to do the same and adhere to them.
There was a time that tenants were offered cash for keys to vacate but that has since been found illegal.
Your other choice is if you feel this is "THE HOUSE", to buy with tenants and wait until their lease ends and not renew their lease. Just be aware that you must give them 60 days notice (unless otherwise stated in their current lease or if one served in the military 90 days notice) that you will not be renewing their lease.
Of couse, your alternative is to walk away and continue your search. If that is the case, certainly call me for assistance if you are currently not working with a local Morristown Realtor already.
Good luck to you.
Jeffrey Halpern

Are you looking to close quickly on a short sale or foreclose property> There is a great property in Madison ready to go $300K Call me to discuss.

Anybody want to weigh in on the anti discrimination laws that include "Familial staus"?

Hi B
1st, most towns, especially Morristown, have ordinances that do not allow unrelated individuals living together. Talk to the town and get them on your side. 2ndly, the eviction process is long, 2 years so better to get the toen on your side. Talk to Town Health Officer as well as Town Code Official at the Town Hall across from Kings on South Street.

The current Morristown mayor is very big on cracking down on "stacking" - multiple people occupying a house. If you call the mayor's office and report them for stacking, they may clear the house for you.

B: The answer that the bank will evict the tenants is wrong. The bank MAY (and usually does) evict tenants but I have seen properties listed where the tenants were still in place and became the problem of the new owner. Since you ask this question, I would assume that the property is still tenanted with people who have rights in Landlord Tenant court. If they are still there, they will have a right to their day in court. They may just move on but I would not count on it. You will then be their landlord.

A bigger problem is that of the status of the property. A foreclosure takes time. After foreclosure, the new owner has the right to sell it in anyway they like. They will be looking for a maximum amount that they can get and may put it on the market. If you make a sweet enough offer, they may sell it to you before they test the market but you can't count on it and you won't know what kind of an offer to make to get it without getting the same professional advice that they will be getting.

It's a hard point to make, if you're into shooting craps, you will know what I mean. If not, it looks to me that you might as well get some experience in that game. It will prepare you for the game you want to play.

Well, it ain't a pretty picture. Watch this - http://www.youtube.com/watch?v=h7BeuQBlnVM

When home goes to foreclosure bank will evict the tenants. However it can be months prior to all this taking place.

New Jersey has long been a tenant friendly state. Even in foreclosure, tenancy is proected. Here is a link to the Public Advocates brochure on the subject...

http://www.state.nj.us/publicadvocate/public/pdf/tenantsfore…

I'd suggest you speak to an attorney, experienced in landlord tenant issues.

Laura Giannotta
Keller Williams Atlantic Shore

B,

It can be a long and difficult task. Our recommendation is to contact your attorney or local police department for a accurate account of the eviction process for your location. This will normally involve, money, court, and the police and can take months.

Many owners try to buy out the "squatters" by offering them cash for leaving. This hardly seems right but if it works and they leave sooner than later it may be beneficial from many standpoints.

Good luck