Home Buying in Fremont>Question Details

seller0101, Home Seller in San Jose, CA

complications with buying foreclosed home with owner living inside

Asked by seller0101, San Jose, CA Tue Mar 12, 2013

I have never seen the property inside, but it's a pretty new construction, and have been told that the bank didn't want to evict the owner and want to sale with the owner living inside. is there any legal issues if I buy the property?

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9
Are you using a realtor to represent you? What is he advising you to do?

If you were my client, I would be very leery of buying a property that cannot be delivered vacant because then you would assume the responsibility for eviction. Too many horror stories about people closing the transaction only to be smacked by an uncooperative resident, whether they're legal or not.

If the bank can't or won't evict the "owner", that raises huge red flags.....
0 votes Thank Flag Link Mon Apr 15, 2013
sorry about it. the property is in Oakland CA
0 votes Thank Flag Link Fri Apr 12, 2013
Hi Nate 108,

If you buy the property and title is transferred to you before the current owner is evicted then you will have to do the eviction when you close escrow. You can pay a lawyer to do that for you, it is relatively inexpensive. The eviction will take from 30 to 90 days.

The bank probably does not want to evict the owner because it fears vandalism could take place once the owner is evicted and the property becomes vacant. This, of course, is only my guess.

Suggest you read the preliminary title report to see if there are any items which may catch you by surprise. If you are not confident about what you understand with the Preliminary Title Report, give me a call and I can help you (408-316-0793)...or email (rpablaza@comcast.net)

Thanks
0 votes Thank Flag Link Tue Mar 12, 2013
Nate: Have no idea where this is going down; just in "California"?? If this property is in the East Bay, then I could help you navigate. I'm going to guess you don't have an agent... because if you did you would be going to THEM and not here on the Trulia boards.... Right? :)

Quickie: Rent control & "just cause" ordinances are not 1 in the same; people erroneously conflate them all the time. They are complimentary & at times intersect, but cover 2 very different dynamics.... and may be wholly irrelevant to this situation. But... it depends... so your best bet is to work with an agent experienced in these exact matters.

So reach out to me & we'll see if we can work together....
0 votes Thank Flag Link Tue Mar 12, 2013
it's already bank owned. the city I am buying having rent control and Just cause accordance.
0 votes Thank Flag Link Tue Mar 12, 2013
If you buy the house with people inside of it you become responsible for getting them out. I would seel legal advice on your options.
0 votes Thank Flag Link Tue Mar 12, 2013
California has a clearly defined process for evictions. It requires written notice followed sixty days later (unless the owner has lived there less than a year, in which case it would be 30 days) by the Unlawful Detainer ("Eviction") lawsuit, hearings, trial, etc. The whole process could take many months. Talented" squatters know how to drag this out for many more months.

Ron's suggestion below to offer cash for vacating without a fight should seriously be considered, as should an attempt to have the lender evict them before close of escrow anyway...or negotiate a better price to compensate you for the legal expense and hassle.
0 votes Thank Flag Link Tue Mar 12, 2013
Who owns it now, this second? If it has been through the foreclosure process then call it a bank owned home since that is correct and not confusing like using the word foreclosed is, which is meaningless after the auction. If the bank owns it they can evict or leave them in the house, it's their house to do with as they wish. If they sell it to you then you have to evict so you better look up what that entails.

It is harder to get someone out than to get someone in.
0 votes Thank Flag Link Tue Mar 12, 2013
Until the Trustee Sale, no one has any grounds for evicting the Homeowner. (If the Bank does; it would still be bad form.)

The Homeowner may be getting Cash-for-Keys after moving, which would give them an incentive to move quickly without trashing the house.
You might be proactive in this by offering them your own incentive: Possibly $1,000 with a Contract that says that they will move by such-and-such a date, without trashing or removing any fixtures.

You have a Realtor, what does he/she say?
0 votes Thank Flag Link Tue Mar 12, 2013
he said the owner might try to rent back the place. but I don't want to get involve with the legal stuff.
Flag Tue Mar 12, 2013
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