Seller Allowed Contractor to Move In Who Wont Reply or Pay Rent

[Burt L.]

I am working to get a property under contract. I made an offer to the seller six weeks ago, showing him pictures of kicked and punched in walls, doors torn off, and a foundation corner being propped up with wood blocks. He elected to have someone move in who said they were a contractor and assured him they would fix up the property. They had no written agreement.

The "resident" installed new doors that the owner paid for and sheet rock was also delivered. The owner now wants to sell but the resident refuses to return his calls. The neighbor says additional people have since moved into the same house as well.

I saw the house before the resident moved in and it cant be worse than before. I will have to get buyers into the house and have little I can do other than knock on the front door. The seller says the people are now squatters, but the resident/contractor moved in with the sellers agreement - although not in writing. I'm sure the resident contractor will immediately file a Mechanics lien, then clouding title. I put a clause in the contract that if there is an issue with the title, the contract will be extended for up to 30 days.

Can this person be removed as a trespasser/squatter? How can the seller or I proceed, with my equitable interest? If I record my contract before he records a mechanics lien, it probably wont matter; the seller also lives out of state. This one looks even tougher than my last wholesale.