All Forum Posts by: Bryan Hartlen

Quote from @Chris Seveney:

@Bryan Hartlen. Send me a pm I can give you the names of several attorneys we have personally used to foreclose on in Illinois.

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@Chris Seveney. PM sent.  Thank-you.

Quote from @Jonathan Klemm:

@Bryan Hartlen - Do you already own the tax liens or looking to purchase them?  I am much familiar with Cook County (Chicago).  As far as firms what type of company are you looking for?  Not sure I am following your objective and needs?

 We own the note on a property and it appears we may have to foreclose.  Wondering what the time and $$ cost is to FC (so we can evaluate other options). And legal firms that specialize in FC in Illinois. 

Wondering what we should expect in terms of time (and cost) for an uncontested FC in Illinois.  Christian county (not Cooke).  Any recommendations on a good firm (or firms to avoid)?

Each housing authority handles rent increases differently.  We have Sec8 properties in Birmingham AL.  Each year (through our PM) we file a rent increase request (what we're asking for justified by comps).  We have not had any increases declined because of an arbitrary (or governmental) rent increase cap.  We have had increases come back at different amounts than requested because the authority valued market rents differently. In any case, it is our decision to accept the authorities offered rent or to not renew a sec 8 lease if we want to pursue a higher amount of rent in the open market. 

We have Sec8 rentals in Birmingham, AL so my experience may be different. We can increase rents to Sec8 market rents anytime a new tenant is placed.  The AL Sec8 placement process does include an evaluation of the property and location which does affect what Sec8 will pay as does the tenant’s voucher amount. But the authority does this eval. If you have a PM they should be able to explain your authority’s process.  If you don’t have a PM you’ll need to approach the authority yourself. 

Note, that in between leases, we also have the right to not renew a tenant and can then start the placement process over at market rents. It’s usually not worth it for a 50 - 100 / mo increase but you we’re $1000.mo below rents which could make it worth the turnover. 

Quote from @Tom Gimer:

Title would be uninsurable. Big red flag on the DIL checklist.

 Tom, if the DIL was signed, notarized and recorded why would it be uninsurable?  What flag would be raised? 

Is there a better way to structure this and achieve the same end?

Quote from @Wayne Brooks:

@Bryan Hartlen This would likely never stand up, if they knew enough to challenge it.  There are state and federal laws dealing with DIL’s and circumvention of foreclosure procedures.

 With it being called out explicitly in the extension we hoped that it could be argued to be a mutually beneficial decision rather than having the borrower sign over DIL now (which he would be willing to do rather than have a FC recorded).  Thanks

Quote from @Aaron Poling:

I have never seen this but could be a good idea. I would be very careful if this is his primary residence though, as there are very strict rules for how these can be handled and would consult a real estate attorney to structure it. 

Also, with a deed in lieu make sure that the buyer has clean credit otherwise as you may end up accepting his debt as part of the deed in lieu acceptance. Those liens that typically the foreclosure would clear out. 

Good Luck! Thanks Aaron

Not a primary residence.  It's an investment / flip property for another investor.  Good point on the credit / liens... although we'd check that before we recorded.  If it was encumbered we would pursue FC.  Thanks.

Wondering if anyone has executed a loan or extension backed by a pre-signed deed in lieu?

We have a borrower that has requested an extension on his mortgage before his balloon is due. He's current but unable to make the upcoming balloon. We're willing to extend, but want to make sure that we're out of the property within our planned investment horizon and with minimal risk of payments stopping and having to FC.  Borrower has agreed conceptually with the idea of an extension coupled with a pre-signed / notarized DIL that we'd contractually agree to not record unless he defaults. Any reason why this wouldn't work?  Has anyone done something like this before?

@Marco Bario thanks for the reply. I hadn't considered #3.