Foreclosed Family Returns

When you buy a foreclosed home, it comes with some risks. You expect some damage and repairs. You expect that there may be some mess to clean up from the former occupants. However, you do not typically expect the former owner to show up at your home, or worse.

A real estate investor purchased such a home in Simi Valley, California, and sold the property to new owners. Just as the new owners were about to move in, the old foreclosed owners showed up with a locksmith, attorney, and camera crew to occupy their former home.

The foreclosed owners paid $500,000 for the home when they first purchased it, but after a string of refinancing and equity withdrawals they ended up owing at least $880,000 on a no-interest mortgage loan on the home.

An investor purchased the home after eviction proceeding had ended at auction, and put in an additional $40,000 in upgrades and repairs. The home was under contract for $800,000 when the old owners showed up, broke in, and claimed that they lost the home illegally.

A long legal procedure is certain to follow, but the investors and new ‘almost homeowners’ certainly got more than they expected in this rotten real estate deal.

Read more at AOL Real Estate.

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