1. To sit or to position oneself in a manner that is close to the ground while resting one’s lower body on his or her heels: Jerry squatted behind the desk so his brother couldn't find him while they were playing hide and seek.
2. To live in a building or on land without the owner's permission and without paying to be there: The migrant workers were squatting on the vacant farm.

That family has been squatting in that house for months.