Tenants made an agreement with unknown person that is not the recorded owner (owner has been foreclosure and move out). There is no written lease agreement. Tenants said they already prepaid the landlord (cash) and currently landlord moved to California. Can they evicted immediately for "illegal tenant" or/and trespassing? They can be someone who knew that the house is vacant and decided to move in while the bank doesn't know or assume that the owner is still living inside the foreclosed home. They are not the owner and landlord is not the owner.
We talked to the sister of the landlord (tenant gave us the phone number and sister of the landlord said the landlord is out of the country and we cannot talk to her) and figured it out that they are not the owner. We asked for the lease agreement and receipt of prepaid rent, tenant said they don't have. We asked for rent while they stay until eviction or lease end (as they said 3 months and when I thought about it 90 days statue is 3 months - they knew their rights), tenant said they don't have money. Just as long as they reside in this house, they are considered as tenants???
Chapter 11 Bankruptcy Attorney
You are really beyond the scope of what can be answered here.
You need to sit down with a lawyer for a paid consultation to figure this out.
The short answer is the principle that a thief cannot convey title, but you have complications that would need to be evaluated.
Real Estate Attorney
I believe they could be innocent victims, just as normal tenants are. I wouldn't take a chance on an early eviction and would follow federal law. They do have an obligation to pay rent while they are there to the new owner. You can review the law to see if any exceptions apply. http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/ptfa.pdf