Notes, Foreclosure done, eviction set for next Wed. Suggestions?

Question

Good Afternoon everyone,

I bought a non-performing note 2 years ago in St. Louis, MO.  After the statutory-required time, I've foreclosed and now eviction is scheduled with the sheriff for Wednesday the 10th next week.

Here is my plan.  This eviction is my first time on this route with a note, and am open to suggestions from people who have taken this road before.

I've coordinated with a business that will provide a locksmith and will put them in contact with the sheriff in order for the locksmith to meet at the same time.

I'm debating on whether to offer $500 to $1,000 through my attorney to the occupant, the former borrower, to remove all furniture and personal belongings and not damage / vandalize the house.

I will have people there to move out the furniture to the sidewalk if the occupant leaves the house a mess.

I will have people there to secure the property against squatters.

I will have an appraiser there to appraise the inside of the house.

Finally, I will have buyers there to look inside and make me an offer.   I'm looking for the highest and quickest cash offer.

I welcome advice from anyone who has similar experiences, success, and what to avoid.

Chris Seveney · Answer

@Rob Pattison

Good plan. I would not offer cash for keys at this point as they will not remove everything and they will want more time. You will end up in dispute on whether they should get paid. This late in the game just use your crew

Chris Seveney · Answer

@Rob Pattison

What was the outcome ?

Chris Seveney · Answer

@Rob Pattison

Whatever happened with this?

Brad S. · Answer

Sounds like you have everything covered and planned. Goes without saying, but make sure the occupant gets paid ONLY after they are 100% out, the locks have been changed and the condition of the property has been verified. Also, I would have the attorney draw up a document for them to sign stating his agreement to vacating and not damaging, etc.

I would start with the $500 offer and offer more only if you need to. You can always go up, but the other way is a lot harder!

Rob Pattison · Answer

I will seek advice from the attorney.   The police and sheriff enforce the laws, as they know them, but aren't attorneys.   When there is conflicting advice between the attorney and a cop on the street, I stick with the attorney's advice.

I'll apprise as this saga unfolds and hopefully closes with a quick all-cash sale either Wednesday or by Friday.

David M. · Answer

@Rob Pattison

Good deal.  That would be nice if you could trash the belongings.  LIke I said, I only know NJ where its a very tenant friendly state.    Honestly, it would surprise if in MO you could just trash it..  Lets face it, if you trash it, do you really think those tenants are going to try to sue you for the value of their belongs???...  Gotta be practical about these matters, and not trying to "fear monger."  Good luck with everything.

Rob Pattison · Answer

Thank you for your feedback, Chris and David.

I've heard from both my attorney and several members on this board not to offer cash for keys at this point, and so I won't.  I did offer cash for keys when I foreclosed on December 28th and the occupants didn't take me up on that offer.   It has taken me a little over 8 months, August 10th is the day, to obtain an eviction date in St. Louis, MO.

I was told by the Sheriff, David, that I can haul left-over belongings immediately upon eviction.  My attorney says I need to leave on the sidewalk for 24 hours, then remove.   I'll need to obtain clarification.

I am a note investor, and only reach the point I am now, when the borrower either doesn't communicate or doesn't keep their promise on the monthly payments.   I have a similar situation going on in Waterloo, Iowa.  I'm about 60 days away from foreclosing.

The game plan now, after speaking with my attorney and the sheriff is to have my locksmith show up and put a lock box on the house after the occupants have been evicted.  Then secure/board up all doors and windows against squatters and theft.   I've notified 3 investors this house will be available for sale this Wednesday.  Tuesday evening, I will post on Facebook market place.   I will run the transaction through a title company.  I don't need a realtor as I have plenty of buyers.

I'm looking for quick cash at a faire price.   An appraiser will be there after the lock smith to give me a value and take pictures.

David M. · Answer

@Rob Pattison

Double check your State's law.  For example, in my case technically the personal belongs are still their belongings so you can't just put it on the curb and throw it out.  You have only regained possession via the eviction judgement.

Its an idea to offer money.  But, how do you know the property hasn't already been vandalized?  I guess you have to ask.  Have you had contact with the tenants before?  Did you do a "cash for keys" offer before (I'm guessing it didn't work otherwise you wouldn't be this far down the road)?

I assume the appraiser will appraise the whole property...  :)

Otherwise, seems like a fair plan.  Not knowing much else about the property or location, sounds fine.  I am guessing since you only were note investing you don't know or care uch about the property.  You just need to dump it and recover whatever you can, right?

Rob Pattison · Answer

Thank you for your reply, Brad.

I'm going to ask my vendor how much they will charge if the vendor has to move all the belongs out, and probably offer that price to the occupant as cash for keys.

Notes, Foreclosure done, eviction set for next Wed. Suggestions?

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