QUESTION
Buying an occupied, foreclosed home. How hard is it to remove current tenants, does lease have to be honored?
Asked on Apr 03rd, 2017 on Residential Real Estate - Michigan
More details to this question:
Thinking about buying a house up for auction on foreclosure. Owner has died, bank is owed money and is foreclosing. There are currently tenants in the house (rental). How do you go about removing the tenants if you purchase the property, how long would it take, does the lease agreement with the former (foreclosed on) owner have to be honored? Our understanding is the interior of the house is destroyed by current tenants. We would want them out asap after buying. Are there any other pitfalls of buying a foreclosed on property? Taxes are all current.
1 ANSWER
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Cunningham Dalman
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To remove tenants, the lease needs to be expired or subordinate to the mortgage, or you have to be able to prove the tenants are in default. Assuming one of these is true, you have to go through the eviction process under summary proceedings. If the lease is subordinate to the mortgage, the process can be quick. If the lease is expired or you need to prove default, it is longer. Generally it will take 1-2 months to put them out.
Answered on Apr 03rd, 2017 at 4:55 PM