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Auction Bought / Past owner refuse to move out
Hello BP Community -
I have recently bought a property through Wayne County Auction - (Detroit, MI)
Located in Highland Park Michigan.
A Duplex!
Occupied by Past Owner in one unit, the other unit is empty.
I have hired a property Management company to complete eviction -
Upon receiving Eviction notice, Past Owner / Tenant went to the Property Management office and insisted that she still owns the property, refused to sign a lease, and stated that she won’t pay rent for her own property.
Property Management company stated that this will not be resolved without going in front of a judge and told me that it can be filed at the end of the month.
How long with this process take?
Suggestions?
Should I hire a real estate attorney?
I am not sure the exact process in Michigan, but I would not use the property management company to file the eviction. There are actual eviction companies that have a lawyer do the filing. I'm not sure the reason for filing it at the end of the month either. I would want it filed immediately. If you find an eviction company they should have all of the answers to your questions. I would just google search "Evictions Detroit Michigan"
Congrats on the purchase!
When did you buy it? Michigan does have a 6 month redemption period on foreclosures. So if you bought the Sheriffs deed recently, the previous owner is probably right about ownership.
Bruce
I would ask your PM company to continue with the eviction OR offer a cash for keys deal.
The PM should know how to handle evictions or hire attorneys competent in these matters. My last Detroit Metro eviction took around 4-6 weeks between slow application process, bailiff scheduling conflicts, etc.
Cash for keys, while unpleasant from a moral standpoint, is often the better choice from a cost benefit analysis standpoint. Ex) $500 to get them out without damaging anything vs ~$1000-$2000 in legal & other fees.
That said, if she's claiming she still owns the place, there might be an extra layer of complication if she can prove her claims and/or hires an attorney herself.
Interesting topic... please post the conclusion once the matter is resolved.
from what i know it usually takes about 6 weeks for the entire process, if you file for eviction you can usually get the home back,
these situations are hard, more often then not the homeowner doesnt know their homes were ever put into auction and lose their homes, but usually with talking to the previous homeowner and proving you are the rightful owner you can get the home back, or at least negotiate them to leave cash for keys , if that doesnt work then file for eviction or notice to quit.
@Maria Sophia @Bruce Scannell is correct, we have a redemption period. Read this: http://www.michigan.gov/mshda/0,4641,7-141-45866-1...
Talk to a lawyer, they are going to tell you to not make any improvements on the property for the 6 months they are in redemption as she could technically pay off the debt and take the property back.
Very interesting, thanks for sharing. Good luck!
@Bruce Scannell is correct. There is a six-month redemption period in Michigan and there isn't much you can do until that time frame is up. Once it is, you'll be able to evict, if necessary. You can probably do it yourself unless the property is owned by an LLC or other legal entity other than yourself. In that case, you'll need an attorney to file the case in court--if the notice doesn't get them out. (I hopeful that you planned for this in advance.)
L Roberts from Edwardsburg Mi. WOW,thanks for the info about the 6 months eviction period allowed for a purchase of foreclosed property in the state of Michigan. i am just getting started and this is a real BOMBSHELL to hear.
So there is no confusion: If this was a mortgage foreclosure, they have a 6 month redemption period. If this was a tax foreclosure, they have no redemption period. Hope I wasn't confusing in the first post.
@Maria Sophia I have also purchased several properties in the Wayne County Tax Auction. While many commenters suggest there is a 6-month redemption period, that is only true for Mortgage Foreclosures NOT Tax Foreclosures. You could have this person out in less than 6 weeks.
I agree with most of the other comments....Get an attorney! If you want someone that just does evictions try James Abbot. For general real estate stuff (including evictions) I have worked with Harry Kalogerakos, and Raymond DeBates, both are good, reputable attorneys.
Honestly, your best bet is to approach the previous owner and explain the situation to them and negotiate a move-out deal. I have 4 properties that came with occupants, two of them are previous owners. In one case, I'm selling the property back to the homeowner on land contract. The other person, I have given a grace period to move out (where they pay $200 /mo. in rent and if all payments are made on time, I give them their rent back by an agreed upon move out date...like cash for keys with more accountability). My guess is that your property management company approached the homeowner without much empathy, and the occupant is right to be skeptical as many people don't realize they've lost the home. It took me a letter, two phone calls, an in person meeting, and over an hour of explanation to get one of the previous homeowners up to speed. She couldn't understand why she didn't get notice about the actual auction sale....and I said "You did, you got foreclosure notices, and once they issued a default judgement, the County doesn't care anymore."
Just remember, this is bad situation for the previous homeowner, they likely have very little money and may not have a place to move to. Tread lightly, and you will be far better off.
Good Luck!
Quote from @Marc M.:
@Maria Sophia I have also purchased several properties in the Wayne County Tax Auction. While many commenters suggest there is a 6-month redemption period, that is only true for Mortgage Foreclosures NOT Tax Foreclosures. You could have this person out in less than 6 weeks.
I agree with most of the other comments....Get an attorney! If you want someone that just does evictions try James Abbot. For general real estate stuff (including evictions) I have worked with Harry Kalogerakos, and Raymond DeBates, both are good, reputable attorneys.
Honestly, your best bet is to approach the previous owner and explain the situation to them and negotiate a move-out deal. I have 4 properties that came with occupants, two of them are previous owners. In one case, I'm selling the property back to the homeowner on land contract. The other person, I have given a grace period to move out (where they pay $200 /mo. in rent and if all payments are made on time, I give them their rent back by an agreed upon move out date...like cash for keys with more accountability). My guess is that your property management company approached the homeowner without much empathy, and the occupant is right to be skeptical as many people don't realize they've lost the home. It took me a letter, two phone calls, an in person meeting, and over an hour of explanation to get one of the previous homeowners up to speed. She couldn't understand why she didn't get notice about the actual auction sale....and I said "You did, you got foreclosure notices, and once they issued a default judgement, the County doesn't care anymore."
Just remember, this is bad situation for the previous homeowner, they likely have very little money and may not have a place to move to. Tread lightly, and you will be far better off.
Good Luck!
May I PM you for advice?