The property is occupied...

[Adi Merx]

Hello everyone,

I recently purchased a foreclosure property through the courthouse auction in Florida. The property is occupied. I have not yet made contact since I’m waiting for the ten day grace period to pass. I’ve called the utility company (water and electric) and asked them if they could verify the person’s name on the account. A few hours later I was able to confirm with the utility company that the person listed on the utility account was also listed on the Lis Pendens (one of three people).

I am familiar with the protecting tenants at foreclosure act of 2009. However, I have a strong feeling that the former owner is living there with some friends and that they will try to either give me a fake lease and/or have the friends act as tenants.
I’m a little confused about how I should go about this. When I make contact with the occupants what should I state, demand and/or offer?

I have read through the posts and there seems to be an agreement on cash for keys. Is this the first thing that I should do?

Should I offer cash for keys even if it’s the former owner who is occupying the property?

Lastly, how does one determine the starting amount for CFK?

Any comments, suggestions or advice is highly appreciated.

Thank you.

[Joel Owens]

Adi,

You need to verify what Tim is saying. It sounds like your area and state is different than mine.

Here in GA a property owner that is foreclosed on is a holdover tenant. Month to month lease, year lease, no lease it doesn't matter where I am at you can't just go get a writ without eviction.

If you can do that there that is awesome. Here you can't get a writ without filing the proper steps and getting an eviction granted in court. The officers even with a writ might take 1 week or 4 weeks to come out depending on writ volume to serve.

If the holdover tenant has only 10 days to get out they might take 500 bucks. If however you have to go through eviction then they will likely stay for months on end until they are close to being thrown out for free rent.

Think of it in a holdover tenants mind 6,000 free rent, 500 cash today and nowhere to live, 6,000 free rent over months or 500 today and have to move all my crap somewhere fast. If they can take the free rent and do nothing for say 4 months at 1,500 a month then they will do that.

If you have to go through eviction it's best to go ahead and start it. The reason is while negotiating with them you say I have started eviction but hopefully we can work something out but if not the process is started. This lets them know you will not be manipulated while they consider your offer and that they cannot BS you for 1 or 2 months and string you out before you file on them.

Remember the protection act invalidates any leases by known third parties, under market rents, extremely long leases etc. So if they go to court a judge will simply rule in your favor with a bogus lease or not.

No legal advice.