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Updated about 7 years ago on . Most recent reply

User Stats

125
Posts
42
Votes
Derek Gendig
  • Broker / Investor / Property Manager
  • Indianapolis, IN
42
Votes |
125
Posts

Tenant Placed Stop Payment On Money Order - Can we do anything?

Derek Gendig
  • Broker / Investor / Property Manager
  • Indianapolis, IN
Posted

We recently received a final payment from a Tenant via money order.  The tenant was financially problematic for most of their lease to include eviction being filed on them 3 times.  Each time, the Tenant was able to come up with enough money to pay for the filing and bring their account to an amount the Owner found to be acceptable prior to possession hear date.  The Tenants lease ended January 31st.  January 22nd the Tenant came in to make a final payment to include yet another eviction filing and 2 or so months of rent.  The payment resulted in the Tenant having a balance of $0 and they moved out on the date they said they would to include bringing the keys in to the office.  Today we received notification that the Tenant placed a Stop Payment on the money order thus leaving their account negative by $2400+.  Surely this is not the first time this has happened.  I believe the assumption made by most PM's is that money orders and certified checks are overall "safer" than personal checks as most lease agreements forbid personal checks as an acceptable payment method.  I contacted the bank to see what can be done and was somewhat surprised when they told me other than calling them to get them to issue payment again, I couldn't do anything.  

So my question is has anyone else dealt with this successfully?  Much to everyone's surprise, I'm sure, the Tenants phone is now off and no forwarding address has yet been provided (doubt we will get one at this point as the Tenants response typically was something about staying with a friend for a while or maybe their mother or grandmother).

Any advice or help would be much appreciated.  

  • Derek Gendig
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