Greetings.
We want to make an offer on a property that has just gone through the foreclosure process and is being handled by an independent broker representing the bank. This property has several apartments on it with good tenants.
This broker is hell-bent on evicting these tenants before he will even accept offers. It just makes no business sense, but he won’t listen.
Any advice?
Is this ridiculous or what?
Thanks so much.
Sasha
i would be finding out what bank ownes it and find out who at the bank is handling it if they cant help ask the the question can i talk to someone that can tell me or will know i can hold
Sorry I wasn’t more forthcoming.
We know very well who owns it. We made several offers preforeclosure and they were rejected. The bank referred us to the broker, saying we had to deal with him now and make all offers through him.
No it is not ridiculous. The seller(lender) is requiring the Broker to evict. Every multi-unit I have dealt with required evictons. They will not sell while tenant occupied. At least the ones I seen.
That is just amazing to me. It just doesn’t seem like good business. The property is worth so much more when it is rented, no?
What is the reasoning there?
Liability. No bank is going to take on the liability of having tenants. Also, it’s a foreclosure that means no leases and no deposits. Most investors will not want to buy under these conditions, in the banks opinion. Even though they might be “good tenants”, it does not matter to the bank.
You are viewing it in your eyes and not the banks. Liability! People love to sue corporations. The bank will probably offer cash for keys to the tenants, depending on the lender. It is a corporate business decision, and a smart one.
Liability, whatever you want to call it, it’s not worth holding your breath. Too many other opportunities and you are wasting your time. I’ve in a simular situation before and I will never do that again. Now here is something you can chew on … instead of focusing on something they don’t want to talk about but negotiate what would it be after the tenants are gone and property is empty. Once you’ve obtained pre-agreement, talk to tenants about going somewher for 1 month til you’ve purchased the property. long shot? Not really when you know the human nature and practice the art of interpersonal and negotiating skills.