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I saw this story the other night and the only part that really got my attention was this guy filing the "avidavit" (pic below.) But if a mortgage company forecloses on a house and then goes bankrupt, I can just move in an own the house by "adverse possession" after x number of years? (That link is pretty instructive and even refers to an "affidavit of adverse possession.") I'm skeptical, though.
And I think our freeloading hero might have a tax problem. Won't the local taxing entities sell the property at auction for unpaid real estate taxes? And won't the buyer have title free and clear?
But, as I always say, if the file doesn't have an indictment in it, I'm not the guy to ask.
16 comments:
The tax issue is going to bite him, I'd bet on it.
The Beast is hungry and will. be. fed.
Oh good grief.
Either the record owner (who has walked away) OR the mortgage company (which is apparently in bankruptcy - so it would take the Bankruptcy Trustee, acting on behalf of the bankrupt and it's creditors) can simply have him evicted. Nothing complicated about that. The affidavit he has filed does NOT give him any present claim of title, so a JP should have no problem issuing an eviction order.
BUT --- he is correct, if the owner and lender sit back and do nothing for enough years, AND he continues to occupy and claim the home as his own, eventually the house can become his.
But "adverse possession" can be complicated. There are 3-year, 5-year, 10-year, and 25-year statutes of limitations which apply to such claims ... and those statutes do not entirely form a coherent plan for such claimants to follow. They were not developed and adopted at the same time, but were rather developed and adopted at different times through the years, to address different issues.
And I believe the guy in this story is mistaken. I don't think the 3-year statute will work for him, because he presently has neither "title" nor "color of title" as those are defined by law.
The 5-year statute will also not work, because it requires that the adverse possessor be claiming under "a duly registered deed" ... which this guy does not have.
The 10-year statute will probably work ... IF this guy can stick out his claim for that long without being thrown out by the owner or lender (and keep in mind, SOME company is going to wind up acquiring the assets of that bankrupt mortgage company, including their lien on this house).
Meanwhile, the story is wrong about something else. It is not the owner or lender who have to file that "complicated lawsuit." Like I say, they can simply evict him. If he wants to overcome that eviction, the burden will be on HIM (after that 10 years runs) to file that complicated lawsuit in order to prove that he has successfully divested ownership from the "true owners" by virtue of "adversely possessing" the property for long enough and under all of the necessary statutory conditions to bar the claims of the "true owners" by virtue of limitations.
See?
---your friendly local real estate attorney
Oh yeah. I also think the cops are wrong about this being purely "a civil matter." Affidavit or no affidavit, so far this guy is nothing but what the law refers to as a "naked trespasser." I think the problem may be that the neighbors have no standing to complain to the police.
But I think if that owner-who-has-walked-away-from-the-house-but-who-actually-still-owns-it-until-foreclosure-is-complete were to call the cops, HE could have the guy thrown out.
Or at least it SHOULD work that way. Sometimes cops are unreasonably scared off by things like affidavits. Go up the chain of command far enough, though, and the actual owner should be able to get it done.
---Me Again.
I think I'd just have him arrested for trespassing. Damn squatter!
He will be evicted sooner or later.
Thanks our friendly local real estate attorney for the info.
Freeloading is greed. Always paid my own way and expect same of others.
Speaking from the tax liability standpoint,even if he is able to stick it out and legally "beat" whatever statutes there are, and the house becomes legally his, wouldn't he possibly have to pay income tax on the property he acquired?
The property is worth about $300,000, so in whatever year it became legally his free and clear, he could be responsible for income tax on that property much like if you win a house or a car. You pay income tax on those items if you win them.
If my calculations are right - that would be about a $76,000 tax bill before deductions.
For a $300k house, aren't the odds pretty high that there's a homeowner's association in play? I would imagine they might have some sort of jurisdiction in this case, but I'm not sure how their fees are collected on abandoned property.
what does John Lanier say?
I got news for you. He said there is no running water or electricity. If the utility companies find out they will have him evicted. Illigal to live in a house in the city without running water. Gotta have a working toilet.
He could be paying the taxes on it which will aid his adverse possession cause...
He's clearly a freeloading loser.
It's not abandoned now. He lives there and claims to own it. So, if this fool wants to own it the HOA should charge his butt.
Ask Lisa Caraway, best real estate agent in Wise County.-------
Sorry, I just threw up a little in my mouth after saying that.
Anon real estate attorney is right. The best the guy can do is the 10 year adverse poss. statute. AND some entity will acquire the assets of bankrupt mortgage company at some point and have him evicted.
P.S. Anyone else wonder how he "found" a key to the house?
P.P.S. Anon real estate attorney should have left his name... Free advertising on the best website in Wise County...
--- Your friendly oil & gas attorney
B. Pat Gray
Canon & Sumner, P.C.
Midland, TX
I've always admired men that went with first initial, middle name, and then last name.
T. Bone pickens
L.Ron Hubbard
C. Everett coop
P.S. don't ever put your name on here. Your reputation is on the line when you visit this site.... and like Barry, the odds of you gaining business here are not as good as you losing it here.
If he's going to take the house by adverse possession, doesn't he have to pay the real estate taxes in order to perfect his claim?
Who is John Gault?
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