All Forum Posts by: Eileen D.

Thank you for your replies! I have encouraging news---my tenant informed me that she has signed a lease for a new apartment beginning 6/1.  Just to make sure we have all of our bases covered, we've also sent a certified lease termination notice effective for her scheduled move out date just in case for some reason her lease falls through we won't be delayed any longer.  I'll most likely take the house off the market, spruce up the paint & re-list.  

Hello,

About early March before our yearly lease was up, my tenant informed us that she'd like to go month-to-month because she wants to move to another school district. I thanked her for her honesty & let her know that is fine with us BUT the house would be going on the market.  Her father, who lived at the property with her for the first year of the lease but no longer lives at the residence, is a realtor so against our better judgement we gave him the opportunity to "bid" on the listing. We decided not to go with him because, not only did we not have the best interaction with him when he lived in the house, we felt he wouldn't operate with our best interest in mind considering that his daughter lives in the house.  I'm sure he isn't happy that we didn't go with him as the listing agent. 

Fast forward, yesterday with A LOT of notice our hired realtor showed up at the house to get a key from my tenant for showings.  Her father was there and apparently made several derogatory comments about the property to my realtor and even commented about what kind of buyers would not be a good fit for the house.  I have a good relationship with his daughter, my tenant, but I am honestly afraid he is going to compromise any potential sales. I don't know what he's capable of.  He lives very close by and could show up at showings for all I know. 

What would you do? The property is in Illinois, so we are aware we should give at least 30 days written notice to terminate the lease.  Is there any benefit for letting the tenant reside there until we have a contract OR would you initiate termination ASAP to mitigate any potential marketing/sale conflicts with the tenant/tenant's family? I have had a great relationship with the tenant herself for the last three years so I would hate for this to go downhill.  She is actively looking for a rental and has been for a few weeks. Please advise! Thank you.

Hi BP,

My borrower is renting out the property at a note of $3k/month but meanwhile not paying me a cent in interest or the taxes on the property.  Unfortunately, I'm in second position on the note so I'm hoping to avoid a foreclosure and am working with the investor in 1st position to have borrower sign a DIL.  

Has this happened to anyone else; specifically, having a borrower renting out a property and not paying interest?  He is looking for new investments via social networking and I feel like I need to warn other investors of this activity.  

Thank you! I do have legal counsel.  I guess it is just time to foreclose. I was hoping to avoid.

Hi,

I took part in a private mortgage investment over three years ago. There are two parties on the mortgage and unfortunately I am in second position. It is what it is. 

The borrower has not paid interest in almost two years and has been renting out the residence while not paying the taxes on the property, etc. We have asked him to reassign the lease to our LLC while signing the DIL. None of us want to deal with the time and cost of a foreclosure.

The good news is that he has informed his tenant to send the upcoming rents to our LLC and has said he will sign the documents but, of course, is delaying. Is there anything else we can do to prompt signing? I really, really would like to avoid a foreclosure especially considering I am in second position.

On another note, the tenant gave a security deposit to my borrower.  If my borrower does not send the security deposit am I responsible for making this tenant whole at the end of the lease? Thank you for any insight.