Looking for Advice on Buying an Occupied Foreclosure in Brooklyn, NY
Member since 2024 · 98 posts · 23 votes
Looking for Advice on Buying an Occupied Foreclosure in Brooklyn, NY
Most Popular Reply
Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votesHello @Isadore Nelson,
From my conversations with colleagues and investors in CT, evictions can happen in ~60 days. Not sure what the process is like there but compared to NY, it is a faster process.
We just toured an occupied 4-family in NY today with a client and the eviction process for those tenants commenced not long ago (within the last couple of weeks). This process can take a couple of months if the tenants are cooperative, but will likely take 6+ months and possibly over a year.
Do you know if the tenants for the subject property are cash tenants or program/voucher recipients?
Do you know if the eviction process was started by the owners before foreclosure?
More than likely, the bank will not want to invest in attorneys for an eviction if they're looking to sell as-is.
In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.
To your point, this is difficult but feasible. Aside from the risk of taking on the property with tenants, you may also have to purchase site unseen which makes it tough to calculate repair costs.
All the best!
Abel
REbuild Team - eXp Realty5234 Reviews
19 Replies
- 1yAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
Hello @Isadore Nelson,
From my conversations with colleagues and investors in CT, evictions can happen in ~60 days. Not sure what the process is like there but compared to NY, it is a faster process.
We just toured an occupied 4-family in NY today with a client and the eviction process for those tenants commenced not long ago (within the last couple of weeks). This process can take a couple of months if the tenants are cooperative, but will likely take 6+ months and possibly over a year.
Do you know if the tenants for the subject property are cash tenants or program/voucher recipients?
Do you know if the eviction process was started by the owners before foreclosure?
More than likely, the bank will not want to invest in attorneys for an eviction if they're looking to sell as-is.
In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.
To your point, this is difficult but feasible. Aside from the risk of taking on the property with tenants, you may also have to purchase site unseen which makes it tough to calculate repair costs.
All the best!
Abel
REbuild Team - eXp Realty5234 Reviews - Member since 2024 · 98 posts · 23 votes1yThank you so much for your clear and informative response.
Quote from @Abel Curiel:
Hello @Isadore Nelson,
From my conversations with colleagues and investors in CT, evictions can happen in ~60 days. Not sure what the process is like there but compared to NY, it is a faster process.
We just toured an occupied 4-family in NY today with a client and the eviction process for those tenants commenced not long ago (within the last couple of weeks). This process can take a couple of months if the tenants are cooperative, but will likely take 6+ months and possibly over a year.
Do you know if the tenants for the subject property are cash tenants or program/voucher recipients?
Do you know if the eviction process was started by the owners before foreclosure?
More than likely, the bank will not want to invest in attorneys for an eviction if they're looking to sell as-is.
In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.
To your point, this is difficult but feasible. Aside from the risk of taking on the property with tenants, you may also have to purchase site unseen which makes it tough to calculate repair costs.
All the best!
Abel
"...could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser..."
In Connecticut, foreclosure overrides other liens, they are essentially foreclosed out of it when it is sold by the bank. Other than outstanding taxes, and utilities, I don't need to worry about anything else. Do you know how I can research to find out about potential liens on the property? - Member since 2024 · 98 posts · 23 votes1y
Quote from @Abel Curiel:
Hello @Isadore Nelson,
From my conversations with colleagues and investors in CT, evictions can happen in ~60 days. Not sure what the process is like there but compared to NY, it is a faster process.
We just toured an occupied 4-family in NY today with a client and the eviction process for those tenants commenced not long ago (within the last couple of weeks). This process can take a couple of months if the tenants are cooperative, but will likely take 6+ months and possibly over a year.
Do you know if the tenants for the subject property are cash tenants or program/voucher recipients?
Do you know if the eviction process was started by the owners before foreclosure?
More than likely, the bank will not want to invest in attorneys for an eviction if they're looking to sell as-is.
In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.
To your point, this is difficult but feasible. Aside from the risk of taking on the property with tenants, you may also have to purchase site unseen which makes it tough to calculate repair costs.
All the best!
Abel
Do you know if the tenants for the subject property are cash tenants or program/voucher recipients? I do not know anything about them or their rental agreement history. They do not answer the doors. I'd suspect they are not voucher holders and were once conventional renters.
Do you know if the eviction process was started by the owners before foreclosure? I don't think anything was started. Apparently, the owner has not been seen in a chunk of time.
- 1yAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
@Isadore Nelson
Yes, you can check the county clerk’s website or office. I haven’t tried the clerk’s office since before 2020 so not sure if this is still feasible.
You can also search acris and go to their site to look up the property. If you don’t have the parcel’s block & lot #, you can use the street name & # to pull up public record docs including deeds, liens, violations, etc.
Once you get the deal under contract, your RE attorney will also run a detailed title search to uncover anything else of importance.
REbuild Team - eXp Realty5234 Reviews - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Isadore Nelson:
I’m considering acquiring an occupied foreclosure property—a two-family home in Brooklyn, NY—and I'm hoping to connect with anyone who has experience in this area?
Also, I’ve purchased occupied foreclosures in Connecticut and have managed the eviction process, which has been challenging but manageable. I’m curious if the process in NYC is similarly structured, where it’s difficult but feasible to follow through, or if there are unique barriers that make it much harder or even impractical.
If anyone has insights or could answer a few questions, I’d really appreciate it!
Thank you so much!
Unless they are housing a squirrel, it will take you years to get someones attention and evict in the city. So take into consideration the holding costs of making no money for years into the process.
What I am trying to say is be very very careful in the city and speak to attorneys ahead of time in regards to the process, cost and how long it will take.
7e investments53 Reviews - 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Your bare minimum eviction in NY State is 6 months, but that would be best case scenario. I had tenants who had not paid in seven months and we had been to court twice before and the judge said, "they said they are trying."
Since you have bought a foreclosure before, at least you have experience with the liens and the process, but you won't get a final tally of the liens unless you can get your title company to run soft title search for these things in advance.
Closing on a foreclosure anywhere in Brooklyn seems like a nightmare to me from an operational end.
- Member since 2024 · 98 posts · 23 votes1yI just need to know in relative terms if it's viable to evict tenants out there. Property is being sold at a heavy discount.
Quote from @Jonathan Greene:
Your bare minimum eviction in NY State is 6 months, but that would be best case scenario. I had tenants who had not paid in seven months and we had been to court twice before and the judge said, "they said they are trying."
Since you have bought a foreclosure before, at least you have experience with the liens and the process, but you won't get a final tally of the liens unless you can get your title company to run soft title search for these things in advance.
Closing on a foreclosure anywhere in Brooklyn seems like a nightmare to me from an operational end.
- Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes1y
Hey @Isadore Nelson
NYC’s tenant protection laws are strict, especially with rent-stabilized units and longer eviction timelines, so it’s essential to go in fully informed. Here are a few things to keep in mind:- Eviction Process: Courts often prioritize tenant rights, and during certain times of year (like the winter months), it’s tougher to get an eviction through.
- Legal Barriers: If the property is rent-stabilized or the tenants have protections, it could mean additional layers of complexity.
- Occupied Foreclosure Strategy: Some investors in NYC find success with a “cash for keys” approach.
- Developer · Brooklyn NY · Member since 2019 · 68 posts · 91 votes1y
@Isadore Nelson
From my experience in the Brooklyn market, you are most likely looking at tenant buy out instead of an eviction. It is very common here for investors to model a buy out of anywhere from $50-$500k.
If you’re getting the property for significantly under market, this strategy can still be advantageous and everyone wins, good luck.
- Member since 2024 · 98 posts · 23 votes1y500k to pay a tenant to leave?
Quote from @Account Closed:
@Isadore Nelson
From my experience in the Brooklyn market, you are most likely looking at tenant buy out instead of an eviction. It is very common here for investors to model a buy out of anywhere from $50-$500k.
If you’re getting the property for significantly under market, this strategy can still be advantageous and everyone wins, good luck.
- Developer · Brooklyn NY · Member since 2019 · 68 posts · 91 votes1y
@Isadore Nelson yes, I know someone that recently paid $500k to get a longtime rent controlled tenant out of a Carroll Gardens Brownstone. They bought the property with tenant in place for roughly $1.5mil under market value for property when vacant. In Manhattan, these buyouts can be 7 figures.
- Member since 2021 · 4 posts · 3 votes1y
Those enormous tenant buyout amounts were feasible before the 2019 rent regulation act. @Isadore Nelson Yes, eviction is possible, but there are too many factors that need to be taken into consideration, active military family members, disabled veterans, building violations, maintenance issues and etc...
- Rental Property Investor · Brooklyn, NY · Member since 2008 · 92 posts · 59 votes1y
Hi Isadore,
You've gotten some good advice from other members above. I'll reiterate that a tenant buyout is likely your best option. You can (delicately) begin talking to these tenants now that you're in contract. They are people and have needs/concerns too. Some people are easy to deal with while others, not so much. Cash for keys is common, and frequently the part that keeps tenants from moving forward is not having an affordable place to go to. It makes a huge difference if you can solve that problem for them.
If you get the sense that there's someone who will NOT leave and make life hell, then it may be worth getting out of the deal (I don't know the specifics).
Good luck!
- Member since 2024 · 98 posts · 23 votes1y
Quote from @Ahmed Saad:
Hi Isadore,
You've gotten some good advice from other members above. I'll reiterate that a tenant buyout is likely your best option. You can (delicately) begin talking to these tenants now that you're in contract. They are people and have needs/concerns too. Some people are easy to deal with while others, not so much. Cash for keys is common, and frequently the part that keeps tenants from moving forward is not having an affordable place to go to. It makes a huge difference if you can solve that problem for them.
If you get the sense that there's someone who will NOT leave and make life hell, then it may be worth getting out of the deal (I don't know the specifics).
Good luck!
Thanks for the information and your helpful advice. In this situation with the duplex, I think I can get one tenant to leave with a cash-for-keys agreement, but the other will be more difficult. Ultimately, it will come down to timing. I don’t believe a tenant can stay forever, and I can cover the extra payments and lawyer fees for up to two years for the tenant who will be harder to remove. I’ve been told that two years is a very reasonable estimate for maximum time it might take for the eviction. The deal does have a sizable amount of margin, which makes it attractive to begin with.
- Member since 2024 · 98 posts · 23 votes1y
Quote from @Account Closed:
@Isadore Nelson yes, I know someone that recently paid $500k to get a longtime rent controlled tenant out of a Carroll Gardens Brownstone. They bought the property with tenant in place for roughly $1.5mil under market value for property when vacant. In Manhattan, these buyouts can be 7 figures.
Eviction not possible or it was about saving 12-24 months of time?
- Rental Property Investor · Brooklyn, NY · Member since 2008 · 92 posts · 59 votes1y
Hey @Isadore Nelson, how did this work out for you?
- Member since 2024 · 98 posts · 23 votes1y
Quote from @Ahmed Saad:
Hey @Isadore Nelson, how did this work out for you?
Fairly well. I'll easily do another, currently looking for deals. It's not easy but worthwhile for high achiever like me, lol.
- NY · Member since 2025 · 4 posts · 0 votes1y
I’ve bought a couple of these in Brooklyn, and I can tell you it’s not the same game as Connecticut. NYC is very tenant-friendly, and that’s the part that usually trips people up.
If the folks inside are tenants, you may be stepping right into a landlord-tenant case. That means housing court, rent stabilization claims, possible hardship extensions — it can drag on way longer than you’d expect. If it’s the former owner, the process runs through Supreme Court instead, which is usually more direct, but even then judges in Brooklyn often give occupants extra time, especially if there are kids or elderly involved.
A few things I’ve learned the hard way:
-
Do a deep dive on who’s actually living there and whether they’re protected. A stabilized tenant can kill your numbers real fast.
-
Carrying costs matter — even if you’re ready to move quick, plan on 6–12 months minimum just in case.
-
Always pull the violation history (HPD, DOB, ECB). I’ve seen people buy what they thought was a steal and then get buried in liens.
-
Having the right attorney is everything. You need someone who lives and breathes Brooklyn housing court.
It’s not impossible — plenty of investors do it — but you’ve got to underwrite with a long timeline in mind. If the numbers still make sense after assuming delays, then it’s worth pursuing.
- Member since 2024 · 98 posts · 23 votes1y
Quote from @Alex Taylor:
I’ve bought a couple of these in Brooklyn, and I can tell you it’s not the same game as Connecticut. NYC is very tenant-friendly, and that’s the part that usually trips people up.
If the folks inside are tenants, you may be stepping right into a landlord-tenant case. That means housing court, rent stabilization claims, possible hardship extensions — it can drag on way longer than you’d expect. If it’s the former owner, the process runs through Supreme Court instead, which is usually more direct, but even then judges in Brooklyn often give occupants extra time, especially if there are kids or elderly involved.
A few things I’ve learned the hard way:
-
Do a deep dive on who’s actually living there and whether they’re protected. A stabilized tenant can kill your numbers real fast.
-
Carrying costs matter — even if you’re ready to move quick, plan on 6–12 months minimum just in case.
-
Always pull the violation history (HPD, DOB, ECB). I’ve seen people buy what they thought was a steal and then get buried in liens.
-
Having the right attorney is everything. You need someone who lives and breathes Brooklyn housing court.
It’s not impossible — plenty of investors do it — but you’ve got to underwrite with a long timeline in mind. If the numbers still make sense after assuming delays, then it’s worth pursuing.
Thanks for your input. Always happy to learn, however just two clarifications I wish to make are:
- Liens – I’m not sure what you mean here. When the bank sells a property, any liens are on them. You can easily check for fines or violations with the housing department, which we obviously do. Any other liens would be foreclosed out, so that’s covered.
Rent-stabilization – I’m referring to two- or three-family properties that aren’t subject to rent-stabilization laws, so that shouldn’t be an issue.
Thoughts? -
-
Join the conversationCreate a free account to reply, vote on answers and follow this thread.