When Can I Move In?
You may get a great buy on a home you buy at the foreclosure sale on the Whatcom County courthouse steps, or on a foreclosed home (REO) you buy that is owned by a lender and listed through the Northwest Multiple Listing Service. Just make sure you know when you can move in.
In the event that the house is occupied by a tenant at the time you buy, you could be living elsewhere for up to 90 days before you can take occupancy, according to the terms of a recent federal law. This could impact your ability to get a loan, insurance and the $8,000 first time home buyer tax credit. If you’re not sure about your rights to the house you want to buy, be sure to ask the right people (your real estate agent, your lender and your insurance agent) the right questions early in the process, before you spend any money.
If you are buying a short sale property occupied by a tenant, remember that you will be bound by the terms of any lease in place unless you or the owner reach an accommodation with that tenant.
Surprises are great at Christmas, but not so great in a real estate transaction, so be aware.
For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!
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I hope the change is for the good as we already have had enough of distressing news off late in the real estate market and I guess we need to have a good start from somewhere.
I don’t think it’s so good for buyers, Laguna, but it’s better for tenants.
If the short sale is for an investor this an opportunity to lock in the tenant that is in place. In many cases the tenant does not know what’s going on until the bitter end.
It definitely can be to the advantage of an investor, since the lease remains in place. In the State of Washington, default and foreclosure notices are sent to “Occupant” as well as the owner’s address, so tenants should have knowledge in advance.
If you’re not sure about your rights to the house you want to buy, be sure to ask the right people (your real estate agent, your lender and your insurance agent)
This is really sound advice, prior to making any purchase make sure you understand all the details of the deal.
If you are buying a short sale property occupied by a tenant, remember that you will be bound by the terms of any lease in place unless you or the owner reach an accommodation with that tenant.
Every agent should read this…twice…the new owner must honor any existing lease on the property. If there is a remainder of the initial lease term then it is typical the tenants rights are to remain until the expiration.
You are right. A similar rule holds in the event of a foreclosure which is occupied by a tenant. If purchased by an investor, the lease will hold. In the tenancy is month to month, 90 day notice is required. If purchased by someone who intends to occupy the home, the new owner can break the lease with a 90 day notice to the tenant.
In our market, we see very few short sales or foreclosures that are occupied by tenants – all the more reason why it is easy to forget the rules when we run into one that is.