Purchasing a foreclosed home can be a great investment opportunity. Whether you’re taking occupancy yourself, or leasing the home to tenants, you’ll most likely see some gains from your purchase. But, what if the foreclosure already has renters taking up residence?
If you’re considering purchasing a foreclosure with tenants, you’ll first need to decide whether you’re going to live there, or continue renting it. Depending on the location of the home, there may be some state and local laws in place that will determine how you proceed. If there is a lease, tenants may be protected in a foreclosure situation.
Currently, Georgia allows renters to be immediately evicted, whether you’ll occupy the home or not. Some other states afford grace periods depending on how the property will be used. If you’re outside of Georgia, and there is an established lease, you may have to continue the terms until the lease expires. If the tenant is in a month-to-month situation, you may also have to give certain notice to vacate.
In most cases, the current tenant has been abiding by their lease and paying their rent, so they’re probably under the assumption that the bills are being paid. Unfortunately, the tenant becomes a victim in these matters, and finds out too late.
It may be a good idea to give notice to the tenant, especially if they’ve been following the lease terms. Angry tenants can set your goals back by possibly damaging the property, filing lawsuits, or even refusing to leave. Protect yourself by carefully following the eviction laws for your state.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.