Foreclosure With Tenants
I'm considering buying a property that is pre-foreclosure. It is an active listing and priced below market value, not an absolute steal, but I want it for the oversized site. The property has tenants and it appears that when the owner realized he was about to lose the home he put in long term tenants with a long term lease..2 years!....I can only assume he did this as a firewall so to speak to buy time.....it has created a major headache for the lender because of tenant's rights. Anyone ever dealt with one like this?
Once foreclosure takes place tenants can be given 30 day notice to vacate if you want them out. Under a normal sale you would be stuck with tenants but foreclosure is a forced sale and tenants become tenants at sufferance meaning that the lease is basically a month to month at best. Hope this helps a little,
Thank you,
Ted Jr
Yep. Knock on their door and ask them what they want to do. Offer them Uhaul money if they are out in 30 days, or else you'll have to start the eviction process.
The best scenario can be created by asking this qualifying question:
"If I can get you into this house as an owner, for no money out of your own pocket and LESS than you are paying in rent, would you do it?"
If you hear "Heck, yeah". You've got yourself the easiest flip in the world.
[ Edited by alubeck on Date 09/11/2003 ]
If the tenants were not named in the original foreclosure complaint or if the complaint was not amended to include their leasehold interest as a junior interest subject to foreclosure you will need to evict them if they holdover beyond the judicial sale. Most states have summary eviction proceedings. This is a cost that should be borne by the lender. I would advise the lender's attorney so that he/she may take appropriate action.