How to obtain possession of preoccupied property (online auction)?

[Hemant Bhagwat]

Hello folks

While looking at properties on online auction sites (auction.com, hubzu.com, etc.) I saw some of the properties with status "Occupied", "It's unlawful to disturb the current occupants" and "Buyer is responsible to obtain possession of the property" . 

How do I perform due diligence on such properties? Also, how to obtain possession of such property? Has anyone had any bad experience doing so? I just want to know how much hassle or lengthy the legal process could be. 

Looking forward to your experiences. 

Thank you.

[Christopher Leon]

First, in my experience, properties on online auction sites are usually foreclosure/REOs. Thus, the bank probably bought at sheriff sale (check your state - maybe different) now, what this means is that whomever was occupying that unit, probably already knows they were going into foreclosure, or, they are renting from somebody who doesn't know this is happening (I have this exact situation going on right now) As a disclosure, they list the unit as it may be occupied cause there is a possibility depending on the type of property. Condos are more likely to be vacant because associations have the power to file a FED and remove anyone from the unit who is not paying assessments. Houses might be different where you can still have squatters because no one is there to police it. Until the unit gets closer to closing, only then do the real estate companies hire a property preservation team (in my experience of course) to then officially secure the unit and then give you keys. This does mean that they have to though, they can very well just leave the unit as is and let you deal with the surprise.
I have purchased two condos via online auction and both said occupied. I did my due diligence by looking up tax record and determining the parking space (assigned spaces for condos) and scouted the joint out randomly during evening and early morning to determine if someone was living there.
If you did get a property with someone in it, all you have to do is go to the property with a briefcase and a business card and let them know you work for a company that acquired the property. Let them know the company purchased the unit at a foreclosure sale, or whatever, and let them know that your there to help them because the sheriffs eviction has been scheduled. Your there to help them, that's the angle we use and depending on your strategy you may want to offer them a lease and give them a shot to rent, but at the very moment they pay late or violate the lease, you schedule your eviction properly and get them out. There isn't really an exact way to do this in my mind, but this has worked for us and we have successfully taken back possession of units with much ease.
Good luck to you.

What's your experience like with online auction sites? Anything weird you have run into? Likes/dislikes?