Bank Owned & Occupied.

[James W.]

hello - 

i've bought 3 REO's so far but have shied away from occupieds.

some questions about occupied REO's -

1. i assume the title will be delivered free and clear because the bank owns it now?
2. can i ask the occupants to pay the rent? hows the rent decided?
3. can i serve notice to vacate if they dont pay? and have them evicted by law if it comes to it?

thank you.

[Jonathan Greene]

@James W. - New Jersey is a tenant-friendly state. It is easier, in my opinion, to evict a holdover homeowner than a tenant. I prefer to use any strategy to get the tenants out and cash for keys works best but is a difficult negotiation. If you are buying more turnkey occupied rentals, which is rare with the price points here for it to be worth it, then evaluating the tenants could work. If they have a lease, you must complete the lease terms, but if they are over lease they still have rights if the prior owner/landlord did not notify them timely that their lease would not be renewed.