Short sale in lieu of lawsuit

3 Replies

A fellow landlord failed to keep property insurance on his LLC and one of his units sprung a leak and destroyed my unit underneath his... the damage is extensive and he mentioned possibly just signing the title of his unit over to me...
Is a short sale the best way to go about this kind of transaction? And what other issues should I be looking out for ?
My first question for him will be to see that his taxes are paid up to date.
Thank you for any insight.

@Brian Schriedel I'm not sure if I would term this as a "short sale". I would be more inclined to term it as an "out of court settlement" and I would not do anything until I talked to a lawyer. What if he has a loan against it? If he has 20% equity and you have to pay the loan and repair your unit too he's not making you "whole" again. You would be getting 20% of his unit and repairing 100% of yours. You see my drift here?? RR

Originally posted by @Brian Schriedel :

A fellow landlord failed to keep property insurance on his LLC and one of his units sprung a leak and destroyed my unit underneath his... the damage is extensive and he mentioned possibly just signing the title of his unit over to me...
Is a short sale the best way to go about this kind of transaction? And what other issues should I be looking out for ?
My first question for him will be to see that his taxes are paid up to date.
Thank you for any insight.

If your neighbor can't afford insurance, what's the likelihood he has any equity in his unit?

Anybody willing to give you anything places very little value on it, likely for good reason.

You nailed it, he inherited two units in this complex less than two years ago. the units themselves are only worth 4k to 10k at best and are paid off. so if he gave me both of his units, it would take an additional 12 months of that rental income to cover my losses.

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