I know that the rules vary from state to state, but in general, what happens if I am living in a property, paying the taxes in hopes to aquire it through adverse possession, but then three months or a year, or five years later the bank comes knocking on my door telling me to get out? What rights do I have as far as staying?
In most states adverse possession takes 15-20 and needs to meet a number or requirements.
It’s 5 in Cali where I’m at, but I’m more worried about once I’m in the property and paying the taxes, can the bank kick me out even if I’m paying the taxes? What will they have to do once they see me paying the taxes acting as if the property was mine?
Since the bank is the owner and you don’t have a lease or other type of permit to occupy, they would just evict you.
This is a stealth strategy. You have to keep the bank sleeping until you get the property. The bank is not like a person that would drive by his supposedly empty house and notice you living there, they most likely will be alerted to your presence when they try to pay the taxes and get notified by the county that the taxes are already paid by you.
From my understanding if I had a lease or option to purchase in place, that would disqualify me from being able to claim adverse possession. But let’s say I had an owner finance purchase contract with the original owner stating that I now have the rights to the property. When I pay the taxes I’ll also record my contract at the county. And when I move in I’ll put the water and electricity in my name so if the sherriff comes knocking I have proof that the house is mine, and I’ve been paying the bills, and maintaining it (unofficially of course). Would I still be within the guidlines for adverse possession since my deal was with the original owner? And when the bank comes knocking I can just play dumb, keep paying the taxes and see what happens. By this time the original owner will be long gone and my dispute will be with the bank which I have no contract with. Shouldn’t that keep me in the guidelines to adversely possess the property.
I’m taking the long route to get to my point, so stick with me.
My own sister had two houses purchased in her name with 4 mortgages. She never signed a single document. Never went to a closing. Knew nothing of the fraudulent purchases until the bank called one day asking why her payment was late.
She took the seller (who pocketed the cash), title company and notary to court and won a judgement against him and had the mortgages set aside, basically leaving the banks holding the bag.
Ten years later she is still being sued by the four banks, has eight foreclosures on her credit (each mortgage was subsequently sold to some other bank when they discovered it was toxic), has spent $100k of her own money on atty fees, can’t locate the seller (probably in a non-extradition country) can’t get a credit card or car loan, can’t refinance her personal residence, got shingles from the stress and oh did I mention is still being sued by four banks.
And she did nothing wrong.
My point here is that banks have entire office buildings full of attorneys with nothing else to do except make your life a living hell.
So roll the dice and take your chances with adverse possession, but don’t think that a bank is just going to “roll over” and let you sneak under their radar. They can and will fight back. And even if you move out, they may not stop. I hope you have deep pockets.
I’m sorry to about your sisiter’s situation. It sounds more like identity theft more than anything though. What judge in their right mind is going to leave your sister accountable, especially if she won the other case against the others that committed the fraudulent activity. What state is this in? I’ve been to court a couple of times and represented myself and won, because I knew the law and waived my rights. Plus I had all documents providing solid evidence that I was in no wrong doing.
Has anybody dealt with adverse possession before, other than with land issues?
Texas
Oh, the judge ruled in her favor, but the banks filed a “bill of review” or some such. Then they sell the note and the new bank forecloses and files a bill of review. Then they sell the note and so on.
Their one and only goal is to so tie this up in court and atty fees that she simply cannot breathe. They can’t find the criminal, and they have to PUNISH SOMEONE, and she’s the only one they can drag into court so that’s what they do. And do. And do.
My only point here is that banks do fight dirty because they can. Protect yourself.
I appreciate your feedback. I realize that the banks will be involved, that’s why I’m trying to gather enough info before I try this strategy. I don’t want to move into a property with a smile, and leave in handcuffs. Thanks, Good insight.