first property at courthouse auction

[Jeffrey Townsend]

I just purchased my first property at a foreclosure auction. The property is currently occupied, I believe there are tenants in there. I have tried knocking several times and no one answers. What is the best way to get someone out? thanks! I am located in Charleston SC.

[Ron S.]

Originally posted by @Thomas Jackson:

Ok @Ron S. the professional on the subject.... enlighten me and explain to Jeff how the process would go. I’m just going off of my own experience from buying foreclosed properties. Technically they don’t even have a “lease” right? They used to own the home, so what does one do? The last home I purchased with a tenant inside still, we started the process, but it didn’t have to come to an actual eviction, they eventually moved out...but that certainly doesn’t mean the tenants just have the right to live in the house indefinitely without any sort of eviction. 

Please fill us in on how the “legal-federal” process would go! 

Thanks! 

I'd be happy to enlighten you. As previously stated, if the occupant has a legitimate lease (not saying they do or do not), the lease survives the foreclosure in its entirety. This does not include the the previous home owner or their immediate family. The foreclosing entity steps in as the landlord (Successor in Interest) and the contract between the landlord and the tenant continues so long as both parties perform (Not saying they are or aren't performing). If the landlord wants to terminate the lease, they are not allowed to do so, absent a breach of the covenants of the lease and even in the event of breach, it may be curable (Not saying it is curable or isn't curable). If they breach, and if they cure the breach, the lease continues so, even though you say you can look for any little thing possible to try to void the lease, as long as you give the tenant notice of the breach (You have to), and the tenant cures the breach, yes, you guessed it, the lease survives and continues. If they violate a noise ordinance, they get to cure it. If they are late with the rent, they get to cure it. If they damage the place, they get to cure it. Absent the most egregious breach, very few instances would be deemed incurable.

To your next point, no. Incorrect. "Technically" they DO have a lease after a foreclosure (Assuming there was one to begin with). As i stated above though, none of these protections are afforded to the occupant if they are the previous homeowner that was foreclosed on, or their immediate family members. Absent a lease, the occupant gets 90 days minimum (Assuming its not the previous owner or family). Even if you void the lease as a successor in interest because you intend to occupy the property, they still get 90 days minimum.

So how does it go for Jeff? My expertise is foreclosing so, knowing that, i engage counsel specialized in evictions immediately, if my foreclosed property has an occupant, regardless of who the occupant is. The $700 it might cost me for an eviction lawsuit pales in comparison to the cost of litigation i may face by doing something wrong or assuming i know what i'm doing with evictions after foreclosure. Jeff's eviction attorney should send a certified letter to any/all occupants of the home, if its occupied. Introduce himself, inform the occupant of who he is (Successor in Interest/representative of the successor in interest). Ask for their names, ask them to contact him, ask for a copy of any lease. If no one responds within a reasonable time, file an unlawful retainer. If someone does respond and doesn't have a lease, notify them of their requirement to vacate the premises after 90 days. If they have a lease and its legitimate, congratulations, Jeff is now a landlord (If he isn't going to occupy the property). There is nothing prohibiting anyone from knocking on the door, or offering cash for keys. My whole point is, hold on, you don't get to just evict someone because you bought a property at foreclosure. As Wayne points out, no one needs to get the feds involved...every local judge in the state will hand you your arse if you just start trying to evict people that may be protected.

 I don't want you to take my word for it. Read the letter from the Federal Reserve below:

https://www.federalreserve.gov...