If a house was purchased by the bank in late summer 2011 in California,, how can the owners still be in the house and it is December?

Asked by TanaJackson, 90703 Sun Dec 4, 2011

How long can they live rent free in an REO house which is listed for sale? Do the owners get to stayin the house until it sales?

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John Arendsen, Agent, Leucadia, CA
Sun Dec 4, 2011
While I applaud the sound advice and feedback you've received from several of my fellow RE professionals I will have to chime in with a stark reality. There are folks living in their homes not having made a payment since 2007. It's not unusual in California at all.

In many instances the banks would rather see someone still occupying a home vs having to deal with an empty or abandoned home that can be easily vandalized, or left sitting empty if not being used to cook Meth or cultivate pot.

I actually know a developer who has been living in a 5 million dollar (10 mil prior to the bubble burst) 10,000sf home on a 10 acre parcel in Rancho Santa Fe and has never made one payment on it to this day. How you say? He planted grapevines and landscaped so beautifully that the bank concluded it would be better to have him stay on the property as a custodian and maintain the property as opposed to having it sit empty and end up losing millions of dollars for lack of maintenance in the process.

This is one case where the banks didn't actually walk all over their own lips. Not suggesting its right but what else are you going to do?
1 vote
Carlos Herre…, Agent, Orlando, FL
Sun Dec 4, 2011
Are you sure it's the owners that are in the home? Sometimes (at least in FL), the lender who forecloses allows a tenant with a current contract to stay for the remainder or the lease perior provided they pay the rent to the lender.
If the owner is still in there, the lender may not have started the eviction process. And I'm not sure how they process these foreclosures and how many they have in the works. It may just be a matter of the bank getting to that specific home on their list.
1 vote
Mark Anthony…, Agent, Cerritos, CA
Sun Dec 4, 2011
When the bank takes the house in its possesion, the eviction process can take up to six months. First, the bank send an REO agent to negoiate the relocation fee .. Our asset managers give us the authority to give a set amount and as time goes by the amount is lessened. What the previous home owner does not realize is the bank has hired an attorney to work simutaneously towards the eviction and the next three-four months are going to court to evict the previous homeownerers. The sad part is when we arrive with the sheriff and locksmith to re-key and they are always in shock and wished they had accpted the first offer. The thought they could stay ayear because their cousins neighbors brother wifes friend who goes to church with the son-n-laws best friend told them they could live for free for another year. In fannie mae instance, if the homeowner had a tenant with a lease, they offer the tenant an option to finish the lease out. There are several case by case scenarios. If you like, send me a direct message and i can do some further investigation for you. email me at C21Astro@gmail.com

Mark Anthony Ruiz

0 votes
Rebecca Cham…, , Palos Verdes Estates, CA
Sun Dec 4, 2011
The bank may be negotiating with them or they may be in the process of eviction.
Web Reference:  http://RebeccaChambliss.com
0 votes
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