All Forum Posts by: Victor N.

There are different rules for active duty armed forces personnel who are transferred under orders. 

Each state has different laws covering this area so you need to review the specific statutes.  In general, the tenant is responsible for the monthly rent until the earlier of the end of the lease term or the landlord rents the property to a new tenant. The landlord has a duty to make a good faith effort to rent the property to mitigate damages from the breach of the lease. The tenant would also generally be responsible for damages to the property and possibly expenses to market and rerent the property. this is not legal advice at you should consult local counsel for state specific laws. 

Call the foreclosing attorney to ask.  It is likely that they will not stop the foreclosure process without money in hand to at least cure the default.  On the other hand the borrower may have redemption rights that allow them to redeem the property and sell it after the auction for a period of time. You need to consult an attorney who knows foreclosure law in the state in which the property is located.

I wouldn'tallow a dish on the roof. Everything else improves your property for the next tenant

Generally, you take the unpaid principal balanceand add accrued interest and late charges and subtract or add the escrow account balance to come up with the payoff.  Without seeing the statement we can't be sure but it sounds like the principal portion of the unpaid payments should be included in the total unpaid principal balance but not the interest and escrow parts of the payments.

You are correct that distributions from an IRA for qualified education expenses are not subject to the early distribution penalty. Again, that is not the transaction you proposed.

She could withdraw up to $10,000 from an IRA (not 401k etc) to purchase a home she owns if she hasn't owned a home in the last two years. The funds up to $10,000 would incur ordinary incone tax but not the early distribution penalty. That isn't the deal you described. I am assuming she is younger than 59 1/2. She should check out her financial aid and student loan options because even a student loan will cost her less than the tax on early distributions from a retirement plan. An RN will easily make enough to repay student loans.

Take your losses and move on.  My father taught me that you can tell if a deal is fair by asking if I were on the other side, would I want to enter into the proposed transaction?  In this case, she would be crazy to do this if she is thinking clearly.  Dividing the retirement plan funds through a QDRO is a nontaxable event.  If she takes out the money to give you, she pays her highest marginal income tax rates and likely a 10% early distribution penalty plus filing a gift tax return.  She should keep the money invested in her own retirement account.  I have had to start over twice through divorce so I understand the emotional and financial pain.  However, this kind of deal will just prolong the suffering and cause more pain.

My parents and grandparents were and are landlords.  They taught me to always say yes to tenant requests followed up with the price (rent raise) required to make it happen.  This approach has worked well for me too with my properties.  Often, the tenant decides that they don't want the request at the price it costs.  When they do, we are both happy.

I have a different take on the tenant's request.  In my experience if someone reads a contract as closely as this and makes thoughtful suggestions like this one, that means they intend to perform under the contract.  I would simply strike the subordination clause and move on or agree to his request.  If you intend to refinance, accept his request.