Need answer quick! (tenants, clause, agent, mortgage)

[Liza54]

Aaaah...I put an offer in on a short sale Thursday ( FL), knowing about the wait ahead of us. Apparently it's the owner's second home and the management company did not know he had put it up for sale. Friday morning, renters, who signed a 12mo lease, moved into the house. Now what?!?!? Can he still sell the home? If I eventually become the new owner, can I give them 30 days from my ownership to move out? This is such a bizarre twist. I suppose at this point, why would the owner sell when renters will now cover if not all, part of the mortgage payment. I am heartbroken

[oldmanbob]

Hey liza54, several questions in order to best help you. You said it was a short sale, and by that, is he trying to get the lender to decrease the price, and usually that only happens if there is a good reason, for the owner to not be able to pay for it, and being a second owned property, may not work. If he just leased it, under contract for 12 months, could be difficult to remove them, until the end of the lease. It could depend on the lease, and sounds like, he wanted to recover something, and may not think you can make the purchase? Im sure , several fl agents will advise, good luck.

[palmcoasting]

Ok...standard Florida contracts have a clause in them saying that the seller can not lease the property if it is not already leased. So, he's out of the terms of the contract unless the contract states or in reality he was already leased out. Standard Florida lease is that the lease survives the sale, which means you would have tenants for the duration unless you can 'buy them out' of their lease. Any funds being held on behalf of the tenant would be released to you as would any pro-rations of rent due at the time of closing.
In addition, depending on when this actually closes, the law may very well be in effect that you would be able to give the tenants 90 days notice to vacate after you actually close on the property if it is going to be your primary residence.
The seller is more than likely trying to recover some amount of money before the short sale, will collect the rent and more than likely not pay the mortgage.
The rest of it makes no sense to me... how could the management company not know the house was for sale? How does the management company know about you or the sale at all? How did you know about the management company? Didn't you have an agent?

[c21boquetebocasgold]

Originally Posted by palmcoasting

Ok...standard Florida contracts have a clause in them saying that the seller can not lease the property if it is not already leased. So, he's out of the terms of the contract unless the contract states or in reality he was already leased out. Standard Florida lease is that the lease survives the sale, which means you would have tenants for the duration unless you can 'buy them out' of their lease. Any funds being held on behalf of the tenant would be released to you as would any pro-rations of rent due at the time of closing.
In addition, depending on when this actually closes, the law may very well be in effect that you would be able to give the tenants 90 days notice to vacate after you actually close on the property if it is going to be your primary residence.
The seller is more than likely trying to recover some amount of money before the short sale, will collect the rent and more than likely not pay the mortgage.
The rest of it makes no sense to me... how could the management company not know the house was for sale? How does the management company know about you or the sale at all? How did you know about the management company? Didn't you have an agent?

OP looks like you just got your questions answered and by a Realtor in the State in question. Though do let us know are you going it alone or do you have someone representing you who can get you through this process, as well as his questions re the management company. JMO but you need a realtor helping you through the process and one experienced in short sales. They are tough transactions even without the rental aspect.

[Liza54]

well I do have a realtor...I'm not sure if this is a reflection of something she did wrong. We put the offer in Thursday evening. Sat morning she called me w/ info re: people moving in Friday morning. It seems, perhaps, another area in the nightmarish short sale I may not want to touch. I mean what if the sale did go thru, and I had to fight to get these tenants out- Plus rest assured the place would not look like the house I walked thru last Thursday.
My realtor seems to think there's not a thing to be done and that she assumes he'll take it off the market.
There is another in the neighborhood, not nearly as upgraded, but at the same price ( imagine this...it's a short sale ). I imagine I can offer a bit less, and hope this one goes smoother. Renters in there just seem to risky an undertaking for someone inexperienced like me.

[c21boquetebocasgold]

Originally Posted by Liza54

well I do have a realtor...I'm not sure if this is a reflection of something she did wrong. We put the offer in Thursday evening. Sat morning she called me w/ info re: people moving in Friday morning. It seems, perhaps, another area in the nightmarish short sale I may not want to touch. I mean what if the sale did go thru, and I had to fight to get these tenants out- Plus rest assured the place would not look like the house I walked thru last Thursday.
My realtor seems to think there's not a thing to be done and that she assumes he'll take it off the market.
There is another in the neighborhood, not nearly as upgraded, but at the same price ( imagine this...it's a short sale ). I imagine I can offer a bit less, and hope this one goes smoother. Renters in there just seem to risky an undertaking for someone inexperienced like me.

Well now that you've clarified you are using a realtor maybe talk to the MB about this (as well as renter and property management situation), because maybe and I'm saying maybe because I have no clue, this particular agent is not experienced in short sales. Like I said previously, even without the renter issues short-sales can be frustrating to begin with for a buyer. A lot of realtors are very experienced with them and the key thing I guess for a buyer is that patience is required and that they are using a realtor who has experience in short sales. But maybe sit down with your realtor and the MB and determine what kind of experience this one particular realtor has in short sales. Very different animal than a straight sale, ya know? Good luck to you

[palmcoasting]

I think its a smart move... with the various protections coming out for tenants buyers really have to be careful if there is a tenant in there that is not on a month to month basis. Your Realtor® did nothing wrong unless she is part of the same company that is also doing the property management. IMO, unless they are really screwed up at her place, then she would know it had been offered up for rent and sale at the same time. The property manangement, unless it's not the same company that had the listing for sale, would definately have known.
All of that aside..
the best of luck to you in your house hunting! And when you find the right place, enjoy it!!

[Liza54]

thanks, all. Looks like I"ll have to just walk from this gem. It was certainly beautiful, but not worth possible tenant issues. Huh..back to square one.As a first time home buyer, I break the "don't fall in love w/ a house" rule over and over.