Hubzu Occupied Experiences?

Question

Looking at some properties that are occupied on hubzu. What has been your experience getting people out of the home. Its a nice home that looks to be well kept so not sure if that says anything about the people living there or not. This is Pennsylvania. What rights do I have to get people out in a timely manner if they don't want to work with me! Thanks for any and all help. First purchase and am excited to get started but also not wanting to jump in blind!

Rich Baer · Answer

@Derreck Wells

In Maryland, you can be sued even if the people in the house are not your tenants. A friend of mine got hit for $5,000,000 for a house he bought at tax sale.

Francis Lamadrid · Answer

I have experience buying at Hubzu auction properties, Occupied properties the winning bidder is

responsible for executing the writ of possession all states and county are different in the process of eviction. Normal time frame is 30 to 45 days and aprox  60 days if is contested.

All closing are Special Warranty Deed , in which you are getting a free and clear title. Also if you choose the lender title service you get your title policy for free.

There is only 2 options for getting the occupants to leave , (1) cash for possession (2) writ of possession  court order. This case is for owner occupant.

If the property is tenant occupied , then after you receive your deed (title) you must make contact and find out if the occupant has a true lease . the following tenant act was created .

Your Rights Under the Protecting Tenants at Foreclosure Act

https://www.shra.org/Portals/0/pdf/hot_topics/Fore...

At the end of the day you will achieve full control and possession of your property

Hope all this help a little

Ronald Bourgeois · Answer

I would not approach the current tenants.   OUCH ... this could lead into a whole new set of problems.  Just my opinion, maybe others here on the group have their own suggestions on this approach?

Joel Wiegand · Answer

Thanks for the help! Taking into consideration of what everyone here is saying. Would it be wise to do a simple knock on the door and try see if the people occupying the house are tenants to the bank paying rent or if they are the previous owners playing hard ball. I know, that's been my hang up too. If they are still in there, obviously the bank wasn't very successful in getting them out which yes, is a big red flag for me. Its a nice home and seems they take care of the property within reason. ARV is  $300,000 and doesn't appear to be in bad shape. Getting it for around $200k sound reasonable if it costs around 25k (est.) in repairs?

Ronald Bourgeois · Answer

Sharpen up on your negotiation skills for use with the current occupant should you win this auction.  I'm always a little skeptical occupied auction properties mainly because if the Bank or Servicer could not enforce an eviction or settle on mutual arrangement such as 'Cash for Keys' to vacate the property, then I treat this as a 'RED FLAG' and you should be prepared for any surprises.

Due diligence should be a high priority with this type of Auction.  Be sure you do a Title Search and obtain  MLC Municipal Lien Certificate.  Know what type of DEED is being offered from the Bank.

Be cautious and research heavily  if this is your first deal.  WHY?  because you get a home and occupied non-paying tenants.  (Squatters)

Sean Cole · Answer

Each state is likely different, so I can only speak to Ohio and assume/hope that PA is similar.  Once you close on the house and have the deed recorded, you begin eviction proceedings just like they were a tenant renting from you that overstayed the lease and/or stopped paying.  In Ohio, we can get them out in under 30 days if they fight it.  The other option that we've had success with is to offer "cash for keys" to get them to leave sooner and without doing damage.  We'll do a walkthrough on their way out and if they've damaged the house, they get no $ and we start eviction if they won't leave.

Derreck Wells · Answer

@Rich Baer, In MA if you buy a property that has lead paint that's occupied, you have a set number of days that you can start addressing the issue. If you do start in that time frame, you're not liable for previous lead paint illness claims. MD may have a similar law in place. You could be missing out on good deals for nothing.

Rich Baer · Answer

@Joel Wiegand

I only buy vacant houses on Hubzu. I don't want to deal with any lead paint liability from someone still living in the home.

Rich Baer, Esq.

Hubzu Occupied Experiences?

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