Owner Occupied Homes


#1

Sean,
?? I am in California, i would like to see what you know about evicting owners from foreclosed homes once i have purchased the home at the foreclosure auction. i have one case going on right now, I served them a 30 day notice, but I read something that talked about serving the former owner with a “3 day notice to quit due to foreclosure”. Is that something different than a 3 day notice to quit or pay rent? i dont want to give them the option to pay rent, i just want them out when they do not accept cash for keys. do you have any knowledge on this subject? and how do you deal with former owners living in a home that you purchased at auction?
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thanks, anything will be helpful.
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Brent


#2

I typically start the eviction immediately, though if I got a great deal I will wait until I have received and recorded the trustees deed. Note that some may say you have to wait to file the eviction until after the trustee’s deed is recorded - hogwash - trustee’s deeds are exceptional in that they are effective as of 8am the day of the sale as long as they are recorded within 15 days (though I have had to hastily point this out to both my attorney and the judge in order to keep one case from getting thrown out - don’t expect them to know).
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I also start the eviction even if the person agrees to do cash-4-keys. Better to start the clock ticking, and it helps keeps folks motivated. You can easily dismiss the case once they are out - cheap insurance.
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For owner occupied a 3 day notice will work. For renters we now have to do a 60 day notice. Watch out for owners with kids over 18, or friends staying with them, as they will likely say that person is a renter and you will have to start the clock over with a new 60 day notice. If you can’t quickly serve the folks, be sure to quickly get an order to post so that you can simply put the notice on the door.
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Making money in this business has a lot to do with how quickly you can turn your capital over (if you can use the same capital to do 3 or 4 deals a year instead of 1 or 2 it makes a big difference). Staying on top of evictions and knowing the law helps.


#3

thanks that was helpful, but i have one more follow up question:
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can we serve them a 3 day notice to quit due to foreclosure that does not give them any options to pay (come current) on any type of rent? the only 3 day notice that we have is a 3 day noitce to pay rent or quit, but, i dont want to give them any options to stay in the home any longer than i have to. make sense? i am really just curious about this “3 day notice to quit due to foreclosure” my paralegals have not heard of it yet, but they admit that with all the new developments in foreclosures, they need to do some research themselves.
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thanks,
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?Brent


#4

Sean, ? ?? you say that you now have to do a 60 day notice for renters. when did this happen? could you expand on this… to my knowledge we still just serve our renters with a 30 day notice… why do we need to do a 60 day notice now? ? thanks, ? Brent


#5

also, ? ?? i found that it is SB 1137 that states that you must now give renters 60 day notice when the home is foreclosed on. is this also true for trustee sale auctions? are they still technically foreclosures? i am sure they are but i thought it might be a loophole? ? thansk, ? ? Brent


#6

Nothing special to do here, california civil code of procedure 1161 doesn’t specify the exact details of the form, just that a notice is required. I found a couple of 3 Day Notice to Quit samples on the web. If your eviction service doesn’t have one, and isn’t up to speed on foreclosure related eviction issues, I’d definitely suggest finding a new service.