New Zealand Law
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You will have some problems in that the persons occupying may damage the property. You will need to evict any occupiers as soon as possible to avoid this possibility. If the occupiers were the previous owners and are upset at being evicted then there is a real risk, so you will need to organise to evict them as soon as possible
If the occupiers do damage you can sue them, but they not be able to pay, so it would be pointless suing. The mortgagee is not however liable for the damage.