All Forum Posts by: Robert D.

Ok here is the order of the events to make it clear. I bought an investment property. I boarded up the property it was vacant for many years. I was paying taxes etc. locals were dumping garbage in the yard, breaking in several times, selling drugs etc. I decided I am done with it fixing broken door several times a month. I sold it and broke even. Months after the sale I got notice that I am summoned to the court based on the city violations that happened during the time of my ownership of the property. The new owner bought the property subject to said violations, he met with the city inspectors, started living in the property and fixing it so he is off the hook – he went to the hearing several times and they dismissed him (the address of the house) from the lawsuit as a defendant. In the meantime, the litigation continued to the point when a judgment was entered against my LLC only. so the big questions is …once I close the LLC can they go after me personally ..or they can go only after LLC assets

i sold that property before they could record the lien so they cannot attach it to the house. the judgment exists though. that particular LLC does not hold any assets.

For all those who are absolutely revolted and disgusted at the unethical conduct described above I would like to add a side note that the case is in Crook county Illinois, one of the most corrupted placed in the US. some parts of this county resembles 3rd world country...

. It is barely possible to do any business here unless you know the in and outs of the system. It is very likely that the city can ticket an investment property every day for something else. They are looking for money everywhere. The whole county is slowly sinking in the swamp everybody sees that …so back to the subject …can they go after me or no ? 

Lets say I have my little LLC. I separate my personal from llc bank accounts. I keep records, the LLC is alive and does not only live in my desk drawer. I buy properties in the name of the LLC I sell in the name of the LLC, all good. One day I got sued by the city for some grass, garbage accumulation etc for $10k. my LLC was named not me. I refuse to pay lawyers (who 90% of the time represent themselves not their clients) never show up to court so the lawsuit goes default and the judgment is obtained against my LLC. I close my LLC and open another one. Question is : since the LLC is closed and the judgment is pending ..can they go after the assets or attach the judgment to the assets of whoever created the LLC ?

they are still there. they filed for BK and used every trick in the book to be able to stay. buying properties with tenants/owners is not worth it. i am paying insurance, taxes, water and city of chicago building dept is all over me. tenants complain about various problems inside, city files lawsuit and i cannot come inside to fix it...

2.5 years (depending what kind of property it is ...it might be 6 months) start from the time of the sale. that date is on your cert of sale. also, some municipal liens take priority over tax deed e.g. city of chicago receiver lien will not be wiped off the title once you get the tax deed.  

thanks. exactly my point. question is : how many more things I need to do that I am unaware of ? I thought that servicer takes care of all that...

I purchased 1st position note. I have hired FCI as a servicer. I just want to make sure that now I can sleep well hoping that someone else will take care of following all local/federal laws (yeah right …) in exchange for monthly payments. I do remember that I need to notify homeowner about lender change. When I asked FCI if this is within their scope of work they replied that if I wish to I can send fill out TILA checklist and send it to them with a payment. Wow …so I was hoping that they will do that without reminding …so the next questions is ..what else is out there that I need to know when transferring note to me. would you know what lender (myself) need to do and what FCI will not do for you ?

one thing I dont get is ...if they own the note and the total judgment is 40k, why are they selling for 35k ? if I buy for 35k I will get a check for 40k once the house sells on the judicial sale. why they dont wait till the sale happens and pocket the full 40 ? i just got contract to purchase the note...

it all makes sense however I have seen cases when opening bid was much higher than unpaid balance on the mortgage. I dont think that additional costs such as legal fees, interest etc constituted the difference. maybe 2nd and 3rd consolidated ? regarding deed in lieu ...it will work if folks who signed the mortgage could be found and they agree to do that...thanks for a good post

I would like to revisit the topic with another example.

The property is worth 60k as is

The note holder wants to sell the note

The unpaid balance is around 30k

The foreclosure case is ongoing and ready to sale next month.

I know that once the property opens at 30k it will get bid up to 60k

The note holder wants to sell me the note for around 35k

I would like to purchase it and instruct an attorney who handles the foreclosure case to open the bid at 90k so that nobody touches the property and it comes back to me

Question regarding the report of sale and distribution : will I owe the current home owner the different i.e. 55k (90k - 35k) if I do so ? lets not forget that no real money is involved in the process. it is not the case where the property sells and investor brings the check and then surplus/deficiency is calculated.