Foreclosure Purchase: Squatters in Place

[Lauren Goetz]

Hey BP!

I recently purchased a GREAT deal in a foreclosure auction with a ton of equity up front. Closed right before COVID hit. Bought it knowing that in the state of MI, the foreclosed upon party has until Sept of 2020 to redeem the property (highly unlikely due to being medically incapacitated). Bought it sight unseen, and after closing we found out that the prior owner's sister & brother in law are currently squatting in the property with no immediate intention to move (free place to live right!)

Legally, we don't have many options in the way of evictions at this point, as the property is still in the redemption period AND the MI governor has banned evictions in the state until further notice (likely not until august and even then maybe not, at which time the courts are likely to be backed up with pending evictions). HOWEVER, if the squatters choose to vacate, then the property can be legally defined as "abandoned" and we would have some legal flexibility to waive the remaining redemption period and take full possession without waiting until September.

My question is this: has anyone found successful strategies for motivating squatters to leave their properties? I've already offered them cash/offered to pay moving expenses/searched for alternate housing for them (nothing is "good enough")/offered to pay for a storage unit for them. No luck. 

My secondary question is... With the current COVID situation, does anyone have insight into managing the eviction process once the courts are allowed to process them again, for those of us in states where eviction are currently on hold?

Any advice, input, or creative strategies for motivating them to vacate is appreciated!

Thanks!

-Lauren