Borrower out of Home
By now you realize the importance of getting the defaulted borrower out of the foreclosed home. While many will have left before the property is controlled by the REO department, some will remain.
Not until a sheriff or constable knocks on the door and serves legal papers will some defaulted borrowers even think about moving. Some will continue to stall the process. Depending on the jurisdiction and the local laws, the eviction process can take months.
Don't be afraid to talk directly with the defaulted owners. Often no one has offered them any money to move out. Find out what it would take to get them to move.
Some REO departments won't list properties when the defaulted property owner is still in the property. Real-estate agents often will not list the property until it has been vacated because it is next to impossible to show the property while the defaulted borrower is still living there. This can present an opportunity for the savvy real-estate investor.
Buying the property with the foreclosed owner still occupying the property could mean a substantial discount on the price. The trick is to get the occupants to move quickly and without causing additional damage.
Buying them out of their home might seem distasteful to the REO department (the defaulting borrowers already cost the lender too much money), but for the active real-estate investor it could make a lot of sense. A few hundred dollars could buy control of the property, without damage, and the ability to begin making money with the property sooner rather than later. For more on evictions, see Chapter 14.
