OfflineI am working on a bank owned deal and there are squatters in the property. The bank stipulates they cannot deliver the property at closing and the buyers will have to purchase the property sight unseen. The numbers are good but I am not sure how to proceed with the with the squatters and the issue of sight unseen. Please advise. Thank you.
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Gina,
You have a big issue here. I'd suggest speaking with a local RE Attorney about this, as you probably don't want to buy a house to which someone else might have some sort of claim. In some states, Squatters actually have legal rights and you might have to go through an eviction process or worse, you might have to buy the house from them too. Buying it sight unseen, I hope you are only paying pennies, and I do mean pennies on the dollar. Good luck.
--Walter
"If it is to be, it is up to me". -Anon
Squatters, I think it is another word for thiefs. I realize that some states allow for this kind of nonsense. Other states have laws that would allow a sqatter to be removed for tresspassing. If they are legal tenants some states allow them to stay for months. Other states allow for them to be removed within 30 days.
If you want the law changed in your state you need to get involved. start writing and phoning your state rep or state senator. In most states these people are your neigbors. Petition them and push them for changes. Let them know how harmful squatters can be. The Realtors Association is very big politically. Contact them to help fight this problem in your area.
Roy Voeks
Official RE Coach
Thanks for the comments. I think I'll stay clear of this one.
Roy,
May I HUMBLY suggest that you not paint all of them with the same brush? Many of them these days are families that have hit hard times. I find myself about to be homeless and may have to take up being a Squatter myself, JUST to have shelter of some sort. I am doing everything in MY power to avoid this, but right now it's not looking good, as none of my friends have room, my family lives too far away for me to get to, and my funds have flat run OUT.
I am scrambling to get everything into storage before the landlords lock me out, while still trying to move forward on my own real estate investing. ONE deal, JUST 1! and I would not have this problem. Pray forgive my frustration, but to be called a thief for trying to survive grates on the nerves. I am NOT a bad person for wanting to survive.
NOW, All that being said, would you or anyone reading this like to invest in the Northern Nevada area? Reno/Spark/Carson City, even as far as Dayton- I WILL find something for you.
And yes, I would suggest staying away from that deal as well, but based more on the ridiculous requirement of the bank that it cannot deliver the property and that it be purchased sight unseen. THAT raises more flags than any thing about squatters.
Squatters are human, and can be dealt with, either by turning them into renters, or by going through the process of evicting them.
So, yeah, red flags, though not for the same reasons as others point out.
The deal sounds almost like what happens at the Trustee sale in my state. You are not allowed to tour the property, only can drive by the day the day before which is when the list comes out.
Sometimes the former owner is still living in the property and they have to be evicted. You will have to follow due process of law and pay for the eviction. I have also heard of investors paying the tenants get out. This can cost less than eviction and helps all parties involved. Maybe they will clean the place up for you if you pay them. Maybe they haven't left because they don't have the means to go anywhere.
You really need to find out the laws in your state and I would find out the real story of the "squatters". Are they homeless? These things do happen.