What can I do if the seller does NOT move out after closing escrow?

Asked by Hai Le, Garden Grove, CA Fri Jul 24, 2009

I am offering a short sale property. The seller asks for staying in the property for one month after closing escrow. What can I do if the seller does NOT move out after one month of closing escrow?

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Tiffany Hua, Agent, Fountain Valley, CA
Wed Mar 30, 2011
Hello Hai,
I agree with Bill Eckler. Anything can be happened.

There might be a nice Seller and keep his/her promise according to the contract
But, what if the Seller not going to move out after 30 days? This is a Short Sale, so you know that Seller has problem with the mortgage and might not able paying you the rent after you purchased the property. Then you might need an attorney.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Jul 25, 2009
This is no advisable...............our recommendation is to consult an attorney for a clarification of why this is an unacceptable arrangement.

If you are willing to allow them to remain in the home consider doing an addendum to the closing date and not close on the property until they have vacated.

Proceed with care.....................

The Eckler Team
0 votes
Eric Israel, Agent, Orange, CA
Fri Jul 24, 2009
I don't think I would get involved with a property like this knowing what you know at the beginning unless you don't mind having to evict someone out of your home at the end. However, it is probably a moot point depending on where in the short sale process it is. If it is in the beginning stages, there is a high probability that you won't be around when the approval is given in 2-4 months. If you are around at the end of the process then you may have to deal with a squatter. Lastly, the bank may just continue forward with the foreclosure process before approving a short sale and the home may end up at a trustee sale with someone buying it or it could revert back to the bank as a REO home and be sold to someone else. As the others have said, you can extend the close of escrow to coincide with the time frame the seller says they will be out. Surely you can wait an extra 30 days. You can view all bank owned homes in OC here: http://www.socaloceanviews.com/professional1.shtml.
0 votes
Connie Bramb…, Agent, Rancho Cucamonga, CA
Fri Jul 24, 2009
Connie Bramble
Placentia, CA
Good Evening Hai,
In California there is a form for renting back aftEr theclosing of escrow. Your agent should take care of this for you. Simply put it states what the rent will be to the seller per day after the close of escrow. You need this form. It also has a clear time frame in it. If the seller does not move out at the end of the 30 days you will need to evict them just as you would any tenant. You do not have to let the seller stay in the property after the close. You can ask them vacate the property prior to close if you are worried about this. It depends what you have already agreed to in your contract with the seller. I would not wait to talk this over with them til you are ready to close, I would do it now. Best of luck to you.
Connie Bramble

Web Reference: http://OCREALTORCONNIE.COM
0 votes
Emily Knell, Agent, Huntington Beach, CA
Fri Jul 24, 2009
Be careful with this. The owner is short selling because they don't have money to pay their mortgage. It's imperative that you have a conversation with all parties NOW about the owner's ability to pay you (and they should pay you something) to live in the property after Close of Escrow.

Pick a $ for 30 days of their continuing to live there & see if they would be willing to place those funds into your escrow account NOW. Then add $500-1000 to that # that you pick. Tell the owner, you will be holding this extra $500-1000 until they move out after 30 days. You would have the owners put money into an escrow account ONLY AFTER you've received an Approval on the Short Sale in writing.

They're not paying their mortgage, but hopefully they're still working & have an income. All this money they've been making & not paying their mortg. makes it easier for them to pay you some type of rent.

This extra money can be considered a "security deposit", which in their situation they'll surely want it back & that's the fire that will be lit under their butts to get OUT, so they get that portion of the money returned to them.

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