All Forum Posts by: Zocky Zhang

Sure you can sue for breach of contract, but the judge isn't likely to award specific performance if the state and bank don't cooperate. But what do you win? A paper judgement against a company that can't pay it's bills. A real winning situation.

Can you force them into bankruptcy? Nope. That's called an involuntary and it doesn't pass the test. Even if it did, the court would be brutal against you and would view you as an overly aggressive creditor. 

Can you force the sale in a bankruptcy? Nope. You have no rights to the property better than the bank, state, owner and other creditors. 

You seem to think someone can "make" them sell it, but it doesn't work that way. Secured liens are created for just that reason (assuming the state is secured). If it didn't work that way, everyone that's about to be forclosed on would sell their home with a $100k loan for $50k on the fly. 

Let them file a bankruptcy and buy it with a superior title. Or sue and piss the money away. Not much of another option. 

@Zocky Zhang get a bankruptcy attorney on the line that focuses in creditor rights and pay him a few hundred dollars to ask some questions.

I don't know how MD does their Grants, but it typically involves a Grant Agreement between the State and the entity receiving the Grant. It typically isn't in the form of a lien against the property. Which means the only lien on the property should be the bank note. So the owner's goal is to file a Chapter 11 bankruptcy, and as a First Day Motion present what's called a 363 Sale Motion, where they are trying to force a sale on the property for less than the debt amount of the entity (not necessarily the land). You're the buyer. If the Judge approves the sale, the buyer gets the property, liens are satisfied at closing, and to the extent they aren't satisfied the "liens transfer to proceeds" meaning the property is free and clear. 

It's actually a preferred way to buy the property, as you get a Federal Court Order saying there are no post-closing liens on the property, and you get a number of protections as the buyer (including being a BFPFV).

Alternatively, instead of selling the property to you, they may want to auction off the property to ensure they get good value. If so, tell the owner you want to be the "stalking horse bidder." Essentially, you put a bid down equal to your current offer as the starting bid (or maybe less, up to you). If you win, the property is yours. If you don't win, you get a "breakup fee" usually a few thousand or a hundred thousand dollars for "your time and effort." It's a win-win for you.

All of this is somewhat complicated bankruptcy stuff though, so get a good attorney.

@ Zocky Zhang

Have you added a clause in your lease that states the security deposit will not be returned until all the utility bills are paid completely. If so you can later deduct it from the security deposit when the tenant leaves.

@Zocky Zhang just to clarify the water does not have to be the landlord's responsibility in Philly.  It's true that the water stays in the landlord's name and that it is a lien-able item on the property, but you can pass the costs back to the tenant.  

I don't include water in my rentals any more.  Tenant's are responsible for all utilities.  Each month the water invoice gets forwarded to the tenant and it becomes "rent due" with the next rent payment.  That way if there's a $700 water bill it;s totally the tenant's responsibility.

Prior to this, I used to have it in my leases that I covered the first $30 of the water bill (this was a long time ago when water was generally included as part of the rent) and any amount over that was the tenant's responsibility.  $30 at that time covered more than enough usage for a family.  If anything was over $40 the same thing happened then that happens now, the bill was forwarded to the tenant with an invoice letting them know it was due with the next month;s rent.

For this, I agree with @Patricia Steiner, it's a perfect time to go in and check out the property.  Make sure there isn't a leak or anything.  Try and schedule it with them but if not, let them know that you consider this an emergency and will be entering to perform a leak inspection.