Mortgagee sale - removing reluctant previous owners - what would you do??

[Pegasus]

Hi guys
We are settling on a purchase of a unit as a mortgagee sale tomorrow which we want to rent out. Heres what I know about the previous owners: - they won't answer calls from the agent, they are still there with no sign of getting ready to leave, they are a middleage-older couple with minimal furniture, things look clean and tidy which is good,and they never seem to be there when I have been over to the place. They are still living and sleeping there though.
I have the impression they may be in denial or avoiding the necessity to move out tomorrow... I have a rental agent lined up to show people thru and I will be able to get the key from the sales agent once we settle tomorrow. I also left a note at the house to ask the owners to give me a call.
We'd prefer to avoid the long process of getting eviction notice from court etc etc. And I thought maybe one or two of you guys would have a cunning plan that may work to get them out. We dont want to go too heavy in case they do any damage. It doesnt seem right to touch their stuff, as in move it out and change the locks, but we dont want to be held up in getting tenants in.
I wondered if we take our key and start showing people thru they may get the idea?!

Thanks
Pegasus

[Tan]

Ask them if they want to rent it.

Also, look here http://www.propertytalk.com/forum/showthread.php?t=3457

[Xav]

If they won't agree to just move out then usually the only feasible alternative to a possession order is bribery.

[Shane D]

If they won't agree to just move out then usually the only feasible alternative to a possession order is bribery.

Bribery could work here. Just after Christmas/New Year family finances are usually the tightest. An envelope packed with 5 crisp new $100 notes may be the simplist solution .

Shane

[Shane D]

Bribery could work here. Just after Christmas/New Year family finances are usually the tightest. An envelope packed with 5 crisp new $100 notes may be the simplist solution .

Shane

These little "departing gifts" are common practice here in Asia when taking pocession of mortagee sale properties. It's like an insurance that the old owner doesn't distroy the house upon departure.

I thought you wouldn't be able to do much damage to a concrete built apartment but spiteful people can get very creative. Pour concrete down all the drains and toilets. Take a hammer and crack every individual floor tile and bathroom tile. Crack all the windows and bend the aluminum window frames, strip every light fitting.

You get the picture. A liltle insurance bribe starts to look cheap.

Shane

[essence]

As Tan says, offer them to stay on as tenants. If they want to, get them to sign a tenancy agreement, although I think you'll find they won't be able to pay Bond.

Don't be a softie and make the rent too low because of their personal circumstances, just set it at market rate. You don't need to solve their problems - which are many because they've just gone to Mortgagee sale.

OR if they don't want to stay(?!) serve them with a Trespass Notice, with a date AND TIME to be out.

If they haven't moved after that, I think the Court Bailiff's will assist them from the property.

Good luck and let us know how you get on.

[brokerman]

Come across this a few times and various methods have been employed. Direct contact with the $ 'incentive' usually works as they know they have to be out anyway as they will be trespassing. Also known a couple where a large person has had to have a word. Good luck with this and as above don't be soft, its not your problem that they are in this mess and property rentals is a business.

[Shane D]

As Tan says, offer them to stay on as tenants. If they want to, get them to sign a tenancy agreement, although I think you'll find they won't be able to pay Bond.

.

Essence ..I beg to differ on letting them stay on tenants. By going mortagee sale they have just proved to you beyond a doubt they can't meet their financial commitments.

If they can't pay their mortgage, they won't be able to pay market rent. PLUS they probably can't afford to pay a bond.

"A leopord never changes its spots".

Shane

[WGN ex-property manager]

If they are mortgagee due to consumer credit or loss of job, then I agree, they are likely to be poor tenants.

If they are mortgagee due to a small business folding (ie working capital secured on the house), and still have an income (ie spouses job), then they might be a better bet.

[WGN ex-property manager]

If you do take them on as tenants, pay a bond of $10 out of your own pocket. This way you have a bond number so can take them to TT if they turn bad.

[Pegasus]

Hi everyone,
Just wanted to thank you all for your advice and moral support! And to update you on things: We settled on tues and I had been over there 3 times before that. The previous owners had never been home. On the Mon night I left a note on the door with my ph number and saying that we were settling the next day. She did phone me back the next day and claimed that she wasn't aware it was settlement day. She asked if she could stay till Saturday which we agreed to. she wouldnt give me her ph number and we did worry that she wouldnt leave. I am happy to report that she did move out on Sat and has left it tidy - yay!

I have found that the reality of buying at mortgagee is different to what I had expected and we did worry about potential damage being done and getting her to leave. In hindsight, next time I wouldn't wait so close to settlement to contact her - i would make contact earlier in order to get them out on time. I think the bribery approach would be the way to go as well. I would do it again, but I think if you have to deal with this sort of thing then the purchase price should be very good to compensate for the hassle- fortunately our was in this case.

[Xav]

Well done Pegasus, glad to hear it went smoothly.

You pay less (generally) at mortgagee sale because you are taking on risks. It is great that those risks didn't eventuate in this case but I would be very cautious about considering this the reality of buying at mortgagee sale! Your concerns were certainly valid.

[Bluekiwi]

They dont know its hard to kick someone out and takes about 20k and 6 months through the courts.

So as I have said before, best just to go round and talk to them straight after the auction.

With some compassion, and see where it takes you.

Finding out if you need to throw them a few bucks to keep the place in order and leave around settlement time.

Or find out if you have a real problem, and need to take further advice and action.

[eri]

in 90% of these

and other "human issues"

people want "respect" more than anything else

give it to them and they'll generally come around

great to hear it panned out as well as could be expected for all