What happens to the items left in a property once someone buys at the foreclosure sale? I’m talking about stuff like:
- Cars…
- Flat Screen TV’s
- Furniture
Homeowner left A LOT OF STUFF… AND A LOT OF GOOD STUFF, I MIGHT ADD…
If the homeowner has not come back to claim any of their items by the time the house has been sold at auction, then whatever is in the house would be cleaned out in the rehab process. If it is moved to the curb then it’s pretty much unsecured…
If you bought the foreclosure you will need to wait until you have legal rights of ownership of the property. Once you are the legal owner you can enter the property to asses the condition, which includes figuring out if someone is still living there or not. If they are, you may need to go through the eviction process. Check with the courts for the proper protocol in your location.
GooD Luck! :beer
In California if you have a tenant who vacated and left items valued at more than 600.00 you must store those items for them, give them a 30 day notice to remove the items. You can charge them for storage if they do pick up the items, after the 30 days you are free to dispose of the items anyway you want.
Crazy friggin law.
Michael Quarles
Thanks Foreclosure Negotiator and MichaelQuarles… much appreciated… I have a follow up to this question as well…
What normally happens with this stuff when the bank takes the property back? Do they follow the same protocol?
Here’s a hypothetical:
No one bids at auction. Property goes back to bank. You contact the bank the next day, and the bank decides to sell to you.
At this point, who is responsible for the stuff inside the property?
Thanks and Happy New Year…
Once the bank takes control of the property back they have a process they go through to get it back on the market. It starts with the property being assigned to a Realtor or Management company. They will go in and clear out the property, generally putting most everything on the curb as trash. Sometimes they may even get a dumpster to fill.
Generally the general labor hired to do the physical ‘trash’ removal will rummage through the ‘trash’ left at the property for anything they believe has value. The banks only purpose is to get the property cleaned up and ready to be placed on the market and sold to recoup their losses.
GooD Luck! :beer
Foreclosure Negotiator, what if I get to the bank before it’s assigned to a Realtor or Management? Co.???
Let’s say it’s a day after the auction, and I contact the bank and we agree on price and terms.
Let’s say the price is 150k, and the term is ALL Cash… close in 15 days.
Once the bank buys back the property at auction there is no chance of any negotiations until they have gone through the process. Once they get control of the property it goes to their assigned person / company in that market. They will tell you to wait until that person lists the property.
The only chance you would have of any negotiations for the property is if you make contact with the bank prior to the auction. You may be able to negotiate that they do not bid past a specific number, which would enable you to win the bid past that number.
The only other chance I can think of anyone getting to the property other than the above two, is if they have a personal ‘in’ with the lender. Then anything is possible.
GooD Luck! :beer
Thanks Foreclosure Negotiator…
in NC, the offer to purchase has a section in it regarding personal property, giving you the opportunity to list any items you may wish to negotiate for. in it, i always list…“any items left on property after recording of deed”. this pretty much means that anything left on site is yours and yours alone…
good luck
The lender is foreclosing on the property securing the defaulted loan. This may not necessarily include personal property left in the property. The homeowner may still have rights of possession after the property goes to foreclosure.
Your state probably has specific laws regarding abandoned property. Best to check with your attorney and get an informed opinion.
If it is tenant property, you have specific steps you must go through.
If it is tenant property inside the house, the tenant still has possesion of the house, and you are going to have to evict (the bank should have, but they don’t always)
Some states have a period of redemption, and I wouldn’t get rid of any stuff until that had passed.
I’ve never heard of foreclosures containing anything but garbage and junk. Maybe on an estate sale you might get a house full of good furniture, but the sales contract should state that the price is for house and all contents.
If you do get a foreclosure that contains a big screen, look on the back for the name of the furniture rental company. Call them, and they will come and get it.