At this point you have been tracking the foreclosure auctions, found a property you like, done your due diligence and won the auction. Now what?… You have to get possession of the property. This can be one of the most difficult parts of buying foreclosures, there are a lot of potential hurdles. I want to give you the general process of gaining possession with the three scenarios that you will most likely encounter. I’m not going to go over vacant property procedure. There’s not much to it… get a locksmith and start your rehab.

It is important to remember that there isn’t much you can do until you receive the Trustees Deed from the auction. This will take a week or two. However the first think you ABSOLUTELY MUST do as soon as you win the auction is call your insurance agent and get insurance. The last thing you want is a disgruntled former homeowner burning down the house you just bought and not have insurance. SO, get the property insured.

Making Contact

                Warning: Be careful when approaching a home you just purchased. This can be very stressful to the occupant and they may do something to harm you.

Although there is really nothing you can do until you have the Trustees Deed, you can still knock on the door and attempt to make contact with the occupant. If you are able to make contact be respectful, introduce yourself and explain the situation. You need to find out if they are the former owner or a tenant. Also, try to get a peek at the condition of the interior. Exchange information and let them know you’ll be in further contact.

If the occupant is a tenant, you must honor their current lease for 90 days; given two conditions. 1. They provide you with a valid lease. 2. The lease is of reasonable terms at current market rent. If they try and provide you with a lease that shows they pay $5.00 a month rent, the law does not apply (still check with your attorney).

In your attempts to make contact you will come into three likely scenarios. As soon as you receive the deed you can start taking real steps to gain possession. In either of these scenarios, ALWAYS start the eviction process the day you receive the deed.

Hostile Occupant or Non-responsive

                Now that you have your deed, keep knocking the door at different times of the day. You can also post a notice on the door explaining that they must contact you immediately to discuss options. If you don’t get a response within a week or two, or you do get a response and they are hostile towards you and won’t cooperate… Easy, evict. Be sure you have good insurance too. In this situation there’s not much you can do but wait out the eviction process. Your attorney will basically handle everything for you. If it comes all the way down to a lock out (police remove the occupants) be sure you are there with a locksmith. You will have to arrange something with the former occupant for them to remove their possessions or talk with your attorney about what you must/can do with their personal property. This whole process can take 3-4 months.

Willing to Talk

                Often times the tenant of former owner will be willing to talk with you. They’ll sometimes say something along the lines of, “I haven’t paid for years and was waiting for someone to come knocking.” Or, they’re just willing to cooperate. First off, don’t offer anything yet. Ask them if they have plans to vacate and how soon can they be out. You will likely get a long story at this point; remember, be respectful. What you want to end up negotiating is a voluntary move out within 30 days. You may need to offer cash as an incentive. Cash for keys should be no more than $3,500. DO NOT GIVE THEM ANY MONEY UNTIL THEY HAVE COMPLETELY MOVED OUT!!! If they agree to cash for keys, write up