All Forum Posts by: Douglas Snook

If the bottom floor tenant is on a lease and you want to address certain items with them, make sure you give enough notice that you are not going to renew their current lease. However if they wish to stay then start negotiating a new lease. You want to give them enough notice that terms are changing like no pets etc.

If they don;t agree to the changes and don;t leave then you will have to evict

Forget the 6 month inspection. 

Be sure to follow the law exactly with regard to holding the security deposit and last months rent. Also be sure to have them sign the pre move in inspection report. send them notice within 30 days when they leave.

I don;t think you need to provide a fridge. Maybe the tenant took it because it was theirs (what does the former owner say?). Maybe you shouldn't replace it unless you get a lot of tenants who say they don;t have one. Just one more item that can break and have them calling you about. If it breaks on its own you may not be able to deduct it from the security deposit as you have to provide a working unit if that is in the lease.

Since you have inherited these tenants, did you get the former owner to get them to sign off if there were any security deposits? leases? etc so you know what you are dealing with? check out some of the post on here about legacy tenant issues

not sure how it works in TX but I would say you may want to have a title exam done or do it yourself just to see whats on there. That way if there are any issues you will know about them and can get started working on resolving them so when you sell the title is clear or at least there won't be any surprises. 

Just as an example, there could be missing discharges or missing assignments from several years ago and those banks may not even be around any more so it may take a while to track down the successor in interest and get them to issue the document you need

It may not kill your deal but the end buyer may not be able to get title insurance and therefore no loan

Rich

You are getting into some details that take the whole semester in law school to review. and that was many years ago. LOL

You are correct that MA is a non judicial foreclosure state (at least for now)

Usually if there is seller financing the seller is going to take a second position to the bank. The seller would not be able to do that unless they have some equity in the property.  For example, seller sells for $300,000. They owe Bank of America $100,000 so they have $200,000 equity. Buyer gets a loan for $250,000 and seller takes back a loan for $50,000. Buyer buys with no money down. 

Need some additional information. Why are you looking to get rid of the friends property? Do you have to move the tenant out to make renovations?

Bottom line I would treat everything in the apartment as tenants. If you are moving it to repair the unit just treat it as tenants. Let them sort it out if one of them comes to you looking for their stuff.

You might want to start an eviction for cause (for violating the lease by having a room mate)

I think some of the confusion is coming from the term being used or having different meaning in different states. I have not heard the term "purchase money Mortgage" used in Massachusetts.

Also it differs if you are in a title state or not. In your second example Rich (in MA), legal title is held by the owner on the deed. Then there would be the first mortgage and then the seller's would have a second. Both are liens. Some state consider the granting of a mortgage to be an actual transfer of title to the mortgage company. Like in MA when you finance a car but you don;t get the title until you pay off the loan.

IN MA the bank can go after you for the deficiency after a foreclosure but may not.

A lot of these terms are state dependent. 

Norm

Not sure if this would apply in NC but here in MA I would try a suit about Fraudulent Conveyance regarding the transfer of the property to his wife. It may not get you paid right away but could tie up the property that is in the wifes name.

You may need to try some kind of collection action in Federal Court which may trump state court.

Unfortunately all you may be able to do is a slow grind and haunting of this guy where ever you see him pop up.

As I tell my clients, getting the judgment is easy, getting paid is the hard part

Is this owner also a broker? How does he have a lock box? Are you a broker or agent? I think it is unusual for for a broker to give an individual the lockbox code but thats his issue. How is it an issue for you? Is he going to say you didn;t lock up after and someone got in an damaged it? Take a video of you locking up on your phone. If I was him I would be more concerned about you slipping and falling and suing him without him being there.

I say if it looks good why not go take a look? If it is empty and you can go whenever is convenient for you. I am a broker and checkout empty houses all the time through HUBZU by myself. Just ask for the code and I get it. 

I could understand if it is occupied. Wanting to know who is visiting in case anything goes missing etc. but if he doesn't care why should you?

Need more info. Is the solo girl staying on or is she now moving out as well?

If she is staying on her own and a new lease is beginning, has she asked about the security deposit? has the one that left asked? Dis you ask them about it when the first one left?

Either way you should end the tenancy by doing up the damage report, if any and refunding what needs to be refunded within the 30 days. If you know they each gave half the deposit I would write each one a check and send them the notices and payment.

If the solo is going to stay under a new lease, I would tell her she needs to pay the full security deposit. If she says to keep her half and she will give you the other half, fine. Get it in writing.

Next time you rent to two separate people I would put an addendum to lease that with who gave what for a security deposit and what happens if one leaves early. You might have wanted to end the lease with them when the first one moved out and taken care of this then.

Lydia

We really don't use title companies in MA to do something like this. If you are satisfied with the tax issue/consequences then I would have an attorney draft the deed (there are certain registry recording requirements such as margin size etc). It has to be notarized. Then either he or your self can record it. In addition to the recording fee, which is less then $200.00, there may be transfer taxes due as well. It is based on the "sale" price that is stated in the deed (thats one of the requirements of the deed)