Short Sale has tenants living there

[Bienes Raices]

hi, I am looking at a couple of approved short sales (listed on MLS, not ones I am negotiating myself) that still have tenants living in them.

If I got an offer accepted, what is the common procedure--do the tenants have to vacate by closing? Or does it vary by state? Thanks.

[Steve Babiak]

A short sale becomes like any other purchase, except the lender(s) give an approval to release their lien(s) at a discounted amount below the actual payoff figure that is owed.

So forget that it is a short sale when it comes to the tenants; just act like is is a regular sale for how to handle the tenants. And that usually means that the existing lease remains in place, unless the lease has some kind of clause in it to deal with a sale in some different way.

So, you'll have to see what the leases say.