All Forum Posts by: Jerel Ehlert

Have a frank conversation with the agent (and if necessary, their broker).  If that representation formed the basis of the offer, and it was false, they are outside the exemption from Texas Deceptive Trade Practices Act.  I doubt anyone really wants to go there, but...

Pretty much spot on for what @Ryan Blake said.  Before I became an attorney, I used the TREC 1-4 residential contract.  You can use it for cash purchases, sub-2, and wraps.  It's free and title companies know how all the blanks function.

TREC got the Tx legislature to redefine what it means to "broker" to include assigning contracts, to the extent that you must disclose your intent to assign the contract.  This, in my personal legal opinion, is horseshit, but until challenged in court, will stand.  

@Michael Randle re: your example.

Buying a "tax lien" can be a property tax loan under our property and tax codes.  There are very precise requirements under the codes you must comply with, but if you do, you step into the shoes of the taxing authorities, including their priority.  That means you have a higher priority lien than even a mortgagee.  Foreclosure is under the judicial process, and can take months.  

If you do foreclose and if there is a mortgagee, they are wiped out so long as they are given notice of the suit.  @Bruce Lynn is correct - most of the time they will step in and cure the defaulted taxes.  They also pay the costs of the suit and court, and the statutory interest on taxes.

I worked one of these where the lender stepped in and paid the taxes, court costs, my attorney's fees, and interest before I got an order of sale.  She wanted the house, but was almost as happy having the interest.  I had another where I represented the former owner in getting the excess proceeds (property was sold at sheriff's sale for much more than taxes).  Mortgagee was a Countrywide spinoff that woke up and claimed all of it 10 years after they stopped asking for payment on the mortgage.

Yeah, this kind of file can get interesting.

PSA: In Texas, an eviction after a foreclosure is a 30-day notice to vacate, not 3-days.

@Ryan Drean I can't say specifically what fees to expect in your case.  When I say that the NJF costs are added to the JF, it isn't at the end of my cases, but added in at different stages.  I have the costs to start the suit (JF fee), then get permission to send the NoD (NJF fee), then filing the returns and get order to send NoF (JF), send the NoF (NJF), then return to the court (JF).  Technically, the rules of civil procedure say I don't have to appear for oral hearing if the debtor didn't make an appearance, but most judges make us anyway, so that is additional JF fee.  THEN the judge signs the order allowing the sale (JF), which we conduct on the 1st Tuesday allowed under the property code (NJF).

JF has all the same steps of NJF, just with court oversight, and all the costs of both a suit and trustee's sale.

@Greg, Probably judicial foreclosure on deed of trust to secure assumption (usually of the spouse that got the house in the divorce gives the other a lien to ensure the mortgage gets paid).  If unable to foreclose non-judicial, there's an expedited section of the Texas Civil Procedure for judicial foreclosure.

Judicial foreclosure will be more expensive than non-judicial.  The attorney is doing all the same steps of non-judicial, with the added joy of filing and getting the court's approval before and reporting back afterwards.  My non-judicial is $1600+ expenses, judicial is hourly with a $3K retainer to start.  Each court (even within the same county) runs slightly different and have latitude to ask for more or less from the foreclosing attorney.  If the spouse fights the foreclosure, costs will go up.

Also, under the Texas property code you are required to disclose who the owner and manager are.  Sec. 92.201

Hi @Nancy Truong!  I was licensed in 2015, but started real estate investing in 2000 and didn't go to law school until after the crash.  

Tonight Jet Investors and Renter's Warehouse have a monthly bash at the Red Neck Country Club in Stafford.  You have to register for it, but it is free.

There's the Rich Club, Wealth Club, Prosperity Group, and Quest IRA meetings to name a few around Houston.

Eviction.  Whether just the Mom or Mom + Tenants, up to you (if you have the common provision about limit on how long T's guests can stay).

As you know by already having 1 rental property, properties need managing because they won't do it (profitably) themselves.  The answer may lie in the answer to a different question: When do you start to loose money managing your own properties?  (or, Where do you make money? managing property or acquiring property)