Research tenant and squatter's rights before buying foreclosed Hawaii homes occupied by people
Buying a foreclosed home may be a great way for you to purchase a home in Hawaii for less than its market value. However, buying foreclosed Hawaii homes occupied by their former owners or tenants can present special problems that you should be aware of before you buy.
The biggest problem associated with buying foreclosed Hawaii homes occupied by the former homeowner, tenants or squatters is that in most cases, you’ll want them to leave. If you buy a rental and the current tenants are good caretakers and pay rent on time, you might want to offer them new leases. Otherwise, you will want to know the steps for eviction if necessary.
Renters in Hawaii have special rights that you need to be aware of when buying foreclosed Hawaii homes occupied by a tenant. These rights were established to prevent the tenant from being immediately evicted when a foreclosed home is sold. If the renter has a valid lease, you may be forced to honor that lease in most instances. As long as the renter abides by the lease terms, you cannot ask them to leave until the lease is over.
If you plan to live in the home, you are required to give a 90-day notice for the occupant to leave. You must also give a 90-day notice if a tenant rents the home on a month-to-month basis. After the 90 days, you can take legal action to evict tenants.
Getting a disgruntled occupant to leave a property can sometimes be difficult. If the person has been in the home for a while, they may feel a sense of entitlement to stay there, even though the home is foreclosed. In Hawaii, this person is now known as a "tenant at sufferance", where the person is actually invoking so-called squatter's rights. The person can live there until you evict them, which can be a lengthy process that can take weeks or even months.
Because there are so many issues to deal with when buying occupied foreclosed Hawaii homes, you will want the help of a real estate attorney. If you can deal with these potential issues, foreclosures can be great bargains that can save you thousands of dollars off the market price that you would traditionally pay. Otherwise, you can avoid buying occupied foreclosed Hawaii homes and look for vacant properties instead. To view foreclosed home listings in your area, go to RealtyNow.