All Forum Posts by: Nancy Truong

Generally, government liens such as tax liens have higher priority than mortgage (bank) liens. If the bank doesn't pay it than the third party buyer ends up paying for it. It doesn't get wiped out since mortgage liens are junior. Some bank will pay off the liens because of certain requirements. For instance, FHA loans are backed by government so banks will need to clear title in order to get their money back if it goes into REO.

- Nancy Truong, Texas Attorney 

What exactly is it that you would like to know? Are you asking about the legality? The process? How to clear tax lien certificates? 

I see this is under foreclosure topic. My law partner is a foreclosure lawyer and I'm sure she will be happy to answer any foreclosure questions. 

- Nancy Truong, Texas Attorney

 I agree with the rest. Start the eviction process. A notice to vacate gives the tenants 3 days to move before you start the eviction suit. If you already sent notice of late fee. Might as well send the Notice to Vacate. If tenants are already acting this way, be prepared not to get paid the coming month. If you need an attorney, feel free to private message me. Walter & Truong PLLC law firm handles real estate law, business law, and estate planning. We do evictions.

Nancy Truong, Texas Attorney

 Both actually. I enjoy teaching investors about the law. I'm also an active investor in real estate.

Mark,

1. You asked, "How can you legally claim the 1st lien position on the property if the borrower defaults?"

If you want to be the first lien holder, I suggest getting an abstract title on the property for knowledge of any other lien on the property. In Texas, government liens have superiority over every other liens. To be 1st lien position, you'll have to pay off all superior liens. 

2. Your statement: Only thing that worries you is placing an invalid lien on the property or having the lien undone somehow. 

You'll need a promissory note signed and notarized by the borrower. Then secure the note with a security instrument, such as deed of trust. The Deed of Trust is your collateral on the property which you should record in the real property records in the county where the property is located. The Deed of Trust should also be executed and notarized. There are certain terms that must be in the Deed of Trust to protect you. If you are very worried about your lien, you should not use a boil plate template. It'll save you money now but cost you lots if things go sour.

3. You asked, "Is it really as simple as just "filing a promissory note" like every attorney I've talked to claims?

Not sure who those attorneys are or if you misunderstood, but that's wrong. You do not file the promissory note. Keep the original promissory note with you. This is not for public record. The Deed of Trust is the instrument to file. The Deed of Trust must refer to the promissory note. 

4. Does anyone known any Hard Money Lending Attorneys in Houston Area?

I am a Real Estate Attorney. Feel free to private message me. I can provide you a link to our firm's calendar to schedule a consultation with one of our Texas Real Estate Attorneys.

-Nancy Truong, Texas Attorney

Is there a lease? Refer to an executed lease. If there's no lease or if the lease does not stipulate the terms of accommodation, the default in Texas for share living space is that the living room in a common area. You do not need to accommodate her. She rents her bed room. The common area is fair game. You as the landlord can create rules for the common area so long as it does not violate Texas Law, lease agreements, and other applicable contracts for that property. 

From a practical standpoint, if you live with her, stay considerate within reason. If you need to do things that may disrupt her, but it's in the common area, think about whether you need to then and there or can hold off. If you need to do something while she works, then just do it. After the lease ends, it sounds like renewing the lease would cause tension. 

-Nancy Truong, Texas Attorney 

Is this the same as going to a counties auction and purchasing the redeemable deeds there?

In Texas, most counties are live auctions meaning you go to the auction first Tuesday of the month. Depending on the foreclosure type, the redemption period differs. For instance, HOA foreclosures are 6 months for residential and 2 years for tax foreclosures. Trustee sales (mortgage foreclosures) don't have redemption periods. If you're interested in a particular county, the notice of foreclosure sale should be posted in the real property records.

Can hard money be used at these type of events and if so who would you recommend?

Hard money loans? I've heard of hard money from lender to the institution needing the funds but not straight to the borrower. Anyway, try revolving line of credit. You get straight cash. Last I checked, Wells Fargo offer this but I believe you have to be with them for at least 1 year. These foreclosure sales require cash or cashiers check, but check with the sales requirements. The Trustee or Constable usually announces this before hand or it should be on the Notice of Sale. 

My law partner specializes in foreclosure. If you PM me, I can give you her contact information. 

Thanks for the input Bonnie!

Hello All! I recently joined BP a couple months ago and  have been reading and commenting posts. I'm amazed with the overwhelming amount of help everybody provides. This truly is a great platform. 

About myself: I'm a Texas Attorney, and heavily invest in residential real estate. Although I'm experienced in commercial real estate from a legal perspective, I am learning the ropes from an investment standpoint. Hoping to meet like minded people and eventually buy a commercial property. 

I love reading, and strategizing real estate deals. I get geeked out when people want to talk real estate. 

Looking forward to connecting with you all. 

Hello Kiana! My law partner lived in Oahu, HI. Welcome to the BP family. I think you'll find a lot of advice and help from these group of real estate group.