Today’s feature is a guest post by Burbed reader SEA. Wow, Southern California just has a thing for squatting in a foreclosed house you no longer own. Thanks very much, and I’m sure all the people who hate the Most Expensive ZIP Codes series thank you even more.
What happens when amateurs compete with professionals?
“Since the day that we were married, we have been working hard, and saving our money for the day we purchase our dream home. With the depression of the housing market, we believed the time has finally come for us to find our house.”
“The owners of the house had just foreclosed on, and were awaiting eviction. Already were several buyers lined up to purchase up this home as soon as the previous owners were removed (contingent offers had already been placed.) Since the house was at already pushing the limit of our budget, we could not afford to raise our bid and have a chance to outbid the others.”
“Today is October 28th, the day we should take possession of the home. What we found out early this morning is that the pervious owners have no intention of leaving. In fact, they filed for bankruptcy — this automatically puts a stay on the eviction process.Even though the house is not theirs, even though they agreed to move out, the eviction is instantly frozen.”
The Full Story is at Evict Struiksma.
Let’s see… No professional would buy this place with the former owner inside, but this guy thought it’d be a good idea. I’m not a bankruptcy attorney, but deals in the past can get undone by a bankruptcy court–preferential payments for example. Ever had a bankruptcy court ask for cash from you? It’s not a fun experience to have to pay back the cash you were owed.
Also bankruptcy filings have spiked, so courts and judges are experiencing heavy loads, and, it’s been my personal experience that judges are a bit more sympathetic to these foreclosures–the end result might be the same, but additional time might pass.
What’s even more comical is there is a Short Term Occupancy Agreement that provides for certain fees and expenses to be paid by the “occupant,” such as attorney fees. I have no idea what David Potts, or the attorney for that matter, was thinking about how to collect from someone who has gone through foreclosure. Isn’t bankruptcy likely?
I’m sure this house will be left in pristine condition, if David Potts can survive financially…
Oh, and now that it’s in bankruptcy, I doubt that David Potts could legally just go pay the guy to leave. Rather than expect magic for free, I’d have paid the occupant to leave before the bankruptcy was filed, but when you spend every last dime on the purchase, well, uh, what kind of contingency planning is that?
I know; I know. This could never happen in the RBA.