In the Hudson Valley town of Ossining, NY, a four-bedroom house was recently listed for $175,000—significantly below the market rate. The listing warned potential buyers not to approach the property due to “existing occupants are not cooperating.”
“Don’t go there and knock on the door,” stated Noel Cohen of Cohen and Cohen Realty. “The sellers have made it clear that if people just show up, they will get cursed out.”
The homeowners had ceased mortgage payments during the COVID-19 pandemic and were attempting a short sale to avoid foreclosure. The house was described as being in poor condition with leaks, animal infestations, and needing significant repairs.
Despite these issues, Cohen assured that the homeowners would vacate after the sale but were unwilling to leave beforehand. The listing was soon altered to remove references to uncooperative residents and was taken off the market after four days.
Danielle Hale, Chief Economist at Realtor.com, noted that homes with uncooperative occupants complicate due diligence processes and could delay or disrupt closings. Cara Ameer, a broker experienced with distressed properties, added that such situations are best suited for seasoned buyers who can handle difficult owners.
Properties with uncooperative tenants often come at discounted prices but may remain on the market longer. Examples include listings in Cambria Heights and St. Albans, NY, both cautioning against disturbing tenants.
Devin Kay of Douglas Elliman advised caution when dealing with such properties due to potential legal battles requiring judicial intervention. Jameson Tyler Drew of Anubis Group recounted personal experiences involving violence while handling evictions.
Real estate attorney David Almaraz highlighted court backlogs as a factor prolonging eviction processes. Bruce Ailion from Re/Max Town and Country emphasized potential costs associated with removing reluctant occupants.
Short sales also pose challenges as banks can reject deals they disapprove of, complicating financing options for buyers. Properties involved in short sales often require substantial repairs.
Bruce Ailion warned about possible damage inflicted by frustrated occupants on properties awaiting sale. Branden Rivero shared an incident where former tenants vandalized a property he purchased without prior inspection.
Drew recommended “cash for keys” transactions as an effective method to persuade hostile occupants to vacate properties peacefully.
