Advice For Dealing With Squatters In Adjacent Property?

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Advice For Dealing With Squatters In Adjacent Property?

Lucas S.
Larsen, WI · Member since 2013 · 45 posts · 7 votes

Would appreciate any advice on this situation or if anyone can point out other options I might have to get the squatters out of the property next door?.

Background: I purchased a forclosure townhouse (used as rental and currently primary residence) that was attached to a low income housing unit (middle townhouse) in Fairfax, VA. The initially we only really had to deal with more people living there then should be (taking our parking etc. . ) but no real personal issues with the people. About 3 years ago the property went into forclosure and the "owners" moved out. However the owners "cousins" moved back in a couple months later and were there for 2.5 years on and off with lots of people coming and going (found out they weren't paying anything to live there). Still no real problems other then dealing with parking conflicts occationaly and them not really taking care of the property. A couple months ago a new older couple moved in as well and shortly after everyone but this couple left. The water got cut off and the lady has been going around the neighborhood getting water from people for the last month or so, the property smells terrible there is constant alcohol going in and out of the property, druken abusive fights, etc. . . Obviously not a good situation and my wife doesn't feel safe in the property anymore.

I went to courthouse to get records on property and surprise they have multiple tax, HOA, etc. . leins on the property. The worst part though is that the banks didn't do their due diligence and look at the restrictive covenants governing the low income housing, so owner was able to take out 200% of the value of the property in loans above what he originally paid. Ie surouding properties are worth ~300k, but this one is only ~150k becuase the county has controls on it, but the bank loan is for 310k. Called bank on "abandoned" property but they havn't taken action for 3 years and probably won't becuase the county will get the property and the bank will be out at least 150k, so they have no real incentive to move on this at the moment.

What I have done:

1) HOA won't help at all, and had no advice.

2) Low Income housing authority says they are looking into it, but no action so far and apparently the owner has to sell or sign the property back over to them for anything to really happen.

3) Health department and Code Compliance department are "investigating" but no real action either.

4) Called bank/servicing company, but they havn't done anything as they have no incentive and it would take 90 days to evict people anyway.

5) Called police on the fights and they have come, but they are still there.

6) Got the owners number and talked to him when he showed up one day (driving his lexus). He has been no help either, and has obviously let people live there (root of the problem). He at least has a key though still.

Any other suggestions?

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  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    13y

    Sounds like a little bit of a mess.

    I think you have change some of the way you are looking at this. The occupants are not squatters per se. They seem to be there under the guidance and allowance of the current property owner. That is a problem since he clearly doesn't seem to want to help or care.

    I would dig up your copies of the CC&R (HOA documents), there should be some concepts which you could make a stink about with the HOA. You might have to be a little abstract in your thoughts. For instance, what do the bylaws say about renters or non-owner occupied units. What do they say about common nuisance in common areas? What do they say about property upkeep?

    Might even look up how long the HOA is supposed to allow uncollected liens or similar.

    Perhaps make a list of what might be perceived violations. Then document with photos and written affidavits, etc. Then I would present to the HOA board, maybe ask for a special session if allowed.

    It might be possible to convince the HOA based on the list of violations, to file for receivership on the unit. This is a court function and it might be a stretch but it has been done before. The court would hear the HOA compliant and essentially agree the owner is not only in violation but blatantly disregarding the homogenous nature of the development. This affects the equity of the other residents and owners. If you can convince the HOA to file for this and the judge agrees, the court will order a separate third party to take possession of the property. From there, the receiver will work in his or her best efforts to get control of the situation which would include payment of HOA dues by the tenant.

    This also might get the lender to throw their hat in the ring, even if they are not going to proceed with a foreclosure, most lenders will take a swing at trying to collect money through Assignment of Leases and Rents which is contained in most loan documents.

    Essentially what I trying to articulate is find a reason to force your HOA to deal with this. That is why you have one and pay for it in most cases.

    I have some other ideas I will post seperately.

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  • Lucas S.
    OP
    Larsen, WI · Member since 2013 · 45 posts · 7 votes
    13y

    Good thoughts. I will check into the HOA docs tonight and see what my options might be there. I was surprised that they wouldn't help at all, especially as I thought that was one of the points of buying into an HOA.

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  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    13y

    Another idea, call HUD. If this property has rent control it may be under the supervision of HUD. Might as well lodge a complaint with them and they might give you some other resources too.

    As a landlord, which technically this owner is, he has responsibility to maintain the property and utilities. You would have to speak to a lawyer but you as a neighbor might be able to bring charges against him for failing to practice in compliance with the landlord statues where the property is located. You of course would have to show harm. This is likely a tough one to get action from.

    Lastly, I would call the police for any and all violations moving forward. It sucks, and you hate to burden the police to some extent but the community and you (or your tenants) have a right to peaceful enjoyment. Doesn't sound like you get that.

    I would make it a point to understand when and why you might be able to cause a car to be towed and I would commence that as well.

    Essentially, make the occupants life harder. They might move. They might confront you on why you keep hassling them which you can then extend an olive branch a little. I wouldn't be around the bush, I am pretty blunt that way, their actions and lack of property responsibility is causing harm to your property, its occupants and encumbers peaceful enjoyment. If they shape up, you will lighten up, if they don't the saga will continue.

    That is all the brainstorming I have on the matter. Curious what some others might think up.

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  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    13y

    @Lucas S. one other thing. Click on that Report Abuse, under your first post on the left, under your name. Ask if they can move this post to Landlords or similar topic. You are in "Off Topic", this is not an off topic, well not in my opinion, but the Off Topic stuff doesn't show up in the main forum thread post screen so you are limiting who sees this and responds. As I said, I am interested other folk's ideas too.

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  • Tom Goans
    Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
    13y

    Lucas,

    From what is stated in your post, it is possible the present owner wants nothing to do with the property or property management.

    Send the owner a written bona fide offer to purchase the property. Not a “low-ball” offer, but your best price with no intention of negotiation. This way the owner realizes you are a serious buyer.

    Before sending the letter, have your ducks in a row. Have the funding at hand so you can do a quick closing. And express your desire and ability for a quick closing.

    You may also want to have a casual conversation with the present owner to discover the reason for owning the property. My guess is the owner enjoys the added monthly income. But is tired of the phone calls.

    If the owner is enjoying a monthly income, offer to lease the property with the option to buy it later on. In the lease, you agree to take charge of any repairs and maintenance if he agrees to refund the hard costs. This idea continues the monthly cash flow for the present owner and greatly reduces the hassles. The other option is owner financing purchase.

    Or, you could offer to be the property manager.

    Any of these ideas puts you in control of the property and the values of your property, the neighboring property, the entire building, and even the immediate area.

    These are just some of the options for your consideration.

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  • Lucas S.
    OP
    Larsen, WI · Member since 2013 · 45 posts · 7 votes
    13y

    So update - i did call the HUD department - I just referred to them as something else above. They were somewhat helpful but basically said they wouldn't do much until the bank foreclosed on the property (and the bank isn't doing anything as they have no incentive at the moment).

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  • Lucas S.
    OP
    Larsen, WI · Member since 2013 · 45 posts · 7 votes
    13y

    @Tom - I had thought about that, but I couldn't buy the property if i wanted to because of the restrictions on it. The county gets to control any sales and they have to either go back to the county or to someone else who qualifies under the low income controlled housing rules. (under HUD).

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  • Lucas S.
    OP
    Larsen, WI · Member since 2013 · 45 posts · 7 votes
    13y

    @Dion DePaoli

    @Tom Goans

    Thanks for the thoughts (mentions were being werid for me from Chrome)??

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y
    IMO, you've spread yourself too thin trying to work with people/agencies that can't really change or improve the situation. If it were me, I'd stay focused and single-minded on the sanitation issue. It's against code in every muni to have occupants in a building without water. Period. You need to call every dept. connected to sanitation, code compliance, health and safety, and stay on them daily until they visit and cite and/or board up the property. Working with muni agencies and inspectors is a drag, but they do have powers to vacate and board the property if there is no sanitation. Once the property is boarded by a muni and tagged, the police have to respond to break-ins.

    Your tenants and all the surrounding owners can also make calls to all the agencies. Everyone on that block has a right to get the city or county out there to check out the situation.

    Additionally, you can file a lawsuit against the owner for perceived damages as an adjacent neighbor. Filing a suit doesn't mean your case has merit, but getting served a summons may get the owner to act. I'd start by having my attorney write a strongly worded letter about your intent to sue based on code violations that affect the health and safety of your tenants. If he didn't act, I'd file the case. Since it doesn't appear the owner is getting any income from the property, getting a summons or letter might be enough to get him to board it up.

    The HOA has rights, and can sue as well. But I wouldn't rely on a HOA to do anything. They usually only manage to make things worse and take a long time doing whatever it is they do badly.

    Working the loan/lender angle is not a good use of your time time at this point. Get that property vacated and boarded. Then you can try some creative stuff as far as buying or getting it sold.
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  • Tom Goans
    Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
    13y

    Lucas,

    My thought is finding a way to resolve the issue may be a much solution than filing complaints with everyone you can think of to contact. If you are not careful, you will become the main focus.

    The idea is you can attract more bees with honey.

    On that line of thought, let me share an experience to see if it sparks an idea for you.

    My sister bought a single-family house - a HUD repo - in a declining neighborhood. My sister was making improvements inside and outside to make it her dream home. The neighbors on one side had noisy, unsupervised kids. The parents saw nothing wrong with the trash and noise at all hours. All the landscapes in the neighborhood were neglected and just plain unmaintained. If it was a dry spell, everything died that was not already dead.

    My sister sought my ideas.

    I suggested she complete her ideas and that I would assist with the landscape. We turned the property into a showpiece. Many days, people who lived in the neighborhood would stop by and ask how I made the grass so green or where I was finding all the trees, bushes, and flowers. In a year or so, the entire neighborhood did a complete 180. Even the challenging neighbor next door improved their yard and watered on a weekly basis. Everyone’s property values went up. In about 6 or so years, my sister sold her house and more than doubled her money and investment on improvements.

    Everyone was a winner.

    Lucas, maybe an invite to your place for some BBQ will go a long ways to begin the process of solving your challenge. Be neighborly and the same my be returned.

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  • Lucas S.
    OP
    Larsen, WI · Member since 2013 · 45 posts · 7 votes
    13y

    Thanks for the thoughts everyone! I needed a fresh perspective on this issue. I am going to re-evaluate my approach and figure out a more targeted approach to dealing with this.

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