Neighbor's house in probate, NOW HAS SQUATTERS, in California

Lender · Member since 2013 · 40 posts · 18 votes

I had to deal with a similar situation. I bought a house at auction, then when I went to check out the property, there was someone living there that shouldn't have been. Long story short, I had to use the sheriff dept multiple times to get the property cleared, so I could go to work. It can be done, be patient, and use the law to assist you.

2 Reply

Sam Booth
Member since 2022 · 241 posts · 62 votes
1y
Quote from @Brian Napierala:

I had to deal with a similar situation. I bought a house at auction, then when I went to check out the property, there was someone living there that shouldn't have been. Long story short, I had to use the sheriff dept multiple times to get the property cleared, so I could go to work. It can be done, be patient, and use the law to assist you.

How do you get home insurance on a property with squatters???
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Max Gradowitz

Bakersfield, CA · Member since 2016 · 378 posts · 307 votes

5y

It will likely have to go through probate, since the owner is deceased and therefore cannot sign off on selling it right now. Once it's in probate, the court oversees the sale or transfer of the property. If all heirs are on board with selling it, the court will oversee the sale so that it goes on the open market in order to get the highest price possible. So, I think the only way to buy it would literally be to keep track of it until it gets listed for sale. In my area, probate sales are listed on the MLS like regular sales.

But, if you do buy it, then yeah you just evict the squatter. It's a bit of a headache, but likely worth it if you get a good deal on the property.

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Oscar Miguel

OP

San Diego, CA · Member since 2018 · 53 posts · 17 votes

5y

Originally posted by @Max Gradowitz:

It will likely have to go through probate, since the owner is deceased and therefore cannot sign off on selling it right now. Once it's in probate, the court oversees the sale or transfer of the property. If all heirs are on board with selling it, the court will oversee the sale so that it goes on the open market in order to get the highest price possible. So, I think the only way to buy it would literally be to keep track of it until it gets listed for sale. In my area, probate sales are listed on the MLS like regular sales.

But, if you do buy it, then yeah you just evict the squatter. It's a bit of a headache, but likely worth it if you get a good deal on the property.

Thank you Max, that makes sense. Too bad, I doubt I'll be able to pay what wholesalers or flippers will be able to pay. It's in a nice area and will prob sell high even in this condition.

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Mark Pedroza

Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes

5y

@Oscar Miguel

The squatter being in the property is an example of a catalyst for any probate property even for the property your interested in.

If the family member, who may become the PR (Personal Representative) knows of the squatter (maybe the family member) and probably wouldn't want to evict.

As for the three siblings, there's more than likely adversarial issues between the three as two want to sell (motivated) and one doesn't.

Probate is a title problem!! ~ No matter how much time as passed the emotions for the family are still raw..

Good luck..

1 Reply

Davido Davido

Rental Property Investor · Olympia, WA · Member since 2012 · 544 posts · 311 votes

4y

@Oscar Miguel"Is there a way for me to buy the house and start the eviction process"

Yes. Sort of. You could offer the cooperative siblings an amount in exchange for her signing a quitclaim deed -which is a simple one-page deed granting all of their interest in the property to you. Perhaps start with a small amount of cash and move up until you have her interest -or lose yours. With a Quitclaim deed, you still have no title interest, but you are purchasing the sibling(s) heirship and equitable interest. With the quitclaim deed, you would also have color of title -which can be helpful in paying the property taxes and for claiming adverse possession or for later quieting title.

Once you have the quitclaim deed as your claim on the property you could continue to put the property through probate. You should then be entitled to the portion of the estate due to the siblings whose interest you've acquired.

Alternatively, once you record the quitclaim deed you can evict the squatter and rent the property immediately. If the other heir fails to step up to probate the property, you may be able to keep all the rent If the other heir does petition to probate, you could deduct the reasonable and necessary costs of the eviction and of renting the property (but not the costs of improvements). If there is sufficient equity in the property you would also be entitled to be reimbursed for any property taxes you pay.

Be aware that if you rent out an unprobated property with only a quitclaim deed from an heir, it may take years before you could quiet title in your name under a claim of adverse possession. In my experience, heirs do not suddenly move for probate -unless another investor locates them and uses the superior claim of another heir in an attempt to get title to the property. It is other investors (professionals -often sharks), who would be my concern in a deal like this.

1 Reply

Sam Booth

Member since 2022 · 241 posts · 62 votes

1y

Quote from @Oscar Miguel:

Hello everyone, there is a neighbor whose grandmother (legal homeowner) passed away without a will or trust. The neighbor doesn't live there anymore and now the house has a squatter. I asked her if she'd be interested in selling and she is, but here is some of the hair on this potential investment:

*There are 3 siblings, two are in contact and receptive to selling, the third is estranged but came out of the woodwork looking for a piece of the pie. Have not had any luck getting a hold of this person.

*As mentioned, there is now a squatter in the home. Police were called and the squatter knows his rights and now has to be evicted.

*The house is just about to go into probate.

I would love some advice from people with experience here. Is there a way for me to buy the house and start the eviction process myself? This house is in a gentrified neighborhood but has not been touched since 1960. It'd be almost a full teardown and rebuild, but the neighborhood it sits on is definitely worth it. Not to mention that I'd like to help keep the neighborhood safe. Most of the other neighbors are elderly and don't seem to want to get involved. So I see an opportunity for a value add flip or rental, but not sure how to deal with the house being in probate, and now the squatter.

Any advice is welcome, thank you!

What did you end up doing and where you able to get insurance on the property with squatters?

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Neighbor's house in probate, NOW HAS SQUATTERS, in California

Neighbor's house in probate, NOW HAS SQUATTERS, in California

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