Short Sale Landlord Tenant Problem?

by **dalon** » Wed Dec 28, 2011 9:01 am

My parents have been renting rooms in their second home since they've been unable to sell the house for the last 5 years. They've finally decided to do a short sale and have accepted one of the offers and sent it to the bank. Since it's the second offer that the bank has received after the first one was retracted by the first potential buyer, their real estate agent has informed them that the 2nd offer is usually processed and finalized in about 30 days.

The problem is that my parents have one tenant left in the house and she's a nightmare hoarder who is refusing to move out even though we've told her repeatedly that the house is sold. The eviction process would take too long and she's current on the rent so what grounds would we have anyway. What happens to her? What rights do the new buyers have because they don't have a lease agreement with her? Does she become a trespasser and get kicked out by the sheriff? I really don't know.

by **toryn34** » Wed Dec 28, 2011 9:05 am

My parents have been renting rooms in their second home since they've been unable to sell the house for the last 5 years. They've finally decided to do a short sale and have accepted one of the offers and sent it to the bank. Since it's the second offer that the bank has received after the first one was retracted by the first potential buyer, their real estate agent has informed them that the 2nd offer is usually processed and finalized in about 30 days.

The problem is that my parents have one tenant left in the house and she's a nightmare hoarder who is refusing to move out even though we've told her repeatedly that the house is sold. The eviction process would take too long and she's current on the rent so what grounds would we have anyway. What happens to her? What rights do the new buyers have because they don't have a lease agreement with her? Does she become a trespasser and get kicked out by the sheriff? I really don't know.

No, the sheriff will not remove her. She is a legal resident, not a trespasser. The buyers can not take possession since you are not giving it up. You can expect a huge lawsuit.

You need to have her out before you can close. She is entitled to a 30 day notice to vacate, 60 days in CA. You will probably have to refuse this deal because you failed to deal with the tenants first.

by **dent81** » Wed Dec 28, 2011 9:06 am

Depends on the law in your state. She has to be given 30 to 90 days to move. If she has a lease the lease must be honored by the new owner. Personally, I would not have signed off on an escrow as long as she was there.

by **jabarl** » Wed Dec 28, 2011 9:12 am

She's a tenant; not a boarder since your parents don't live there with her.

The problem passes to the new owner. The tenant should be informed of the new owner. Assuming the tenant has already been served with her 30 day notice then the new owner then needs to evict the tenant through the courts. This could take 3-4 weeks depending on how quickly they push the process along. In the end the sheriff would physically remove her if she does not leave on her own.

by **matchitisiw** » Wed Dec 28, 2011 9:22 am

She will have to be legally evicted from the property. Depending on what state you live in and how long the tenant has lived in the residence, this can take anywhere from one month to three. It's not a pretty situation and your parent's should have started the procedure before signing away the property. There could be pretty hefty legal fines and penalties for this.

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