Buying an occupied property from Aution.com

[Mike Hemmer]

I see there was a thread on this but it is several years old. I have purchased several properties from auction.com, this is the first one that is occupied. From the "stalking" I have done, it looks like the actual owners of the property are living there and not tenants. 

We are supposed to close in about two weeks, and my lawyer calls me today to discuss the clause that basically says the sale is pursuant to the rights of the occupants (in other words if they signed a year lease or what not I would have to honor that.) That, however, isn;t what concerns me. He said I could buy the house, go to evict the occupants,  and potentially be screwed if in court they argued the eviction was unlawful or that somehow they should not have been foreclosed on. He said that if this happens, the tenants could retain occupancy and ownership, and I would be out the entire amount of money I spent buying the house. 

He said this is rare, but he needed to inform me about it. Now I'm getting nervous-  seems like too bug a risk to take. 

Anyone have any experience with this?

Thank you

[Kathleen Guilfoyle]

Jon is right...all properties should already have gone through foreclosure (you can double check with your county's Master Commissioner's office), thus if still occupied at closing, you'll need to ask them if they are a tenant and if so, ask for copy of their lease agreement; check your local laws for tenant rights.  If they are the prior debtor, you could offer them a cash-for-keys-agreement for an amicable move out/no damages; a signed, written agreement to exchange $$ for their keys so they move out on a specified date with no damages and all utilities still on.  If they won't budge, you can force eviction according to state law.  I have had several of these, most became vacant on their own or I've offered the CFK.   CFK's work well.  I'm surprised your attorney didn't sort through this with more clarity.