Bought house at Foreclosure Auction - now what?

[Robert Evans]

I have questions about the process AFTER buying a property at a county foreclosure auction and how I should proceed.  I have an appointment with a local RE attorney next week but I thought I would ask the veterans here before going to see him. 

Any and all help is appreciated.

So this is my first investment property.  Hoping to renovate and then rent it out. 

Property is in Fulton county, Georgia.

I did as much research on the property as possible, including title search, before going to the auction yesterday. I bid and won at the sale. Hooray!

The title search shows $900 in unpaid state taxes. No other liens that I can find.

Paid in full for the property after the sale. The attorney handling the title is McCalla Raymer LLC.

I drove by the property a few times over the last 2 weeks.  I believe that IT IS STILL OCCUPIED but I'm not 100% certain.  It's not boarded up.  There's a car parked in the driveway and the landscaping looks well kept.

So, please correct me if I'm mistaken but are the following correct:

The money that I paid goes to the foreclosure attorney (McCalla Raymer LLC).

If the previous owner did not declare bankruptcy in the last couple of months then the attorney will prepare a Deed under Power of Sale (Trustee's Deed) for me which is recorded in the county real estate records. This deed transfers property ownership to me.

If all is well, the attorney should mail me the trustee's deed in 4 - 8 weeks.

If there are any IRS liens on the property then they need to contact me within 120 days in order to enforce them.  Otherwise they fall off.

So what do I do from this point forward?

Do I wait for the trustee's deed and THEN purchase Title insurance, pay the $900 in back real estate taxes, and record the deed in my name?  

Is there anything that I should be doing now in order to manage the title correctly?

What about the possible occupant?  I'd like to take possession as soon as possible.  

I did some research and this is what I think I know:

If someone is living at the property then they are considered a "tenant at sufferance" and I need mail them a certified “demand for possession” letter.  Correct?

If they do not move out by the deadline on the demand, then I file an eviction case or “dispossessory” case in the local Magistrate court. This complaint will be served by the local Sheriff.  They then have seven days to file an answer.  They may move out at that point.

If they file an answer instead then it goes to court and will probably end with a "writ of possession" which is the actual eviction where the Sheriff shows up at the property and evicts the occupants.

Does all of this sound correct?

If so, when should I mail the demand for possession letter?  Should I mail that tomorrow in order to gain possession as soon as possible or should I wait until I get the trustee's deed transferred into my name?

Is there anything else that I'm missing?

Thanks in advance for the help!

Robert

[Rick Baggenstoss]

Best first post I've ever read!  At first, I feared you jumped the gun and bought a house not knowing what you were doing.   I figured you were overly anxious and ill prepared, but your post reads otherwise.  

Process is correct.  However, remember there's a legal process and there's a reasonable process.  Reasonable process is to act like a reasonable human and go knock on the door of the house you just purchased.  With hat in hand, say hello to the tenant and let them know you've just purchased the property and ask if you can set up time to speak with them (spouse, etc.).   Find out if they are former owners or renters.  Bank/Fannie may have had tenants in for a year.  Who knows?

Let them know you want to find a way to reach an agreement to vacate the property for renovations, etc. without attorney involvement.  If they're owners, be quick, otherwise, you might want to be a little more flexible.

If the lease is at market rate, then you have some issues.  However, it's likely not at market and the tenants more than likely will accept my favorite tool of a landlord, "cash for keys".   Cash for keys is a great way to take possession very quickly and most importantly, agreeably.  It lessens the risk of damage to the premises upon exit. 

Congrats on the house!

Rick