All Forum Posts by: Justin Igoe

Point taken, and I'm leaning towards trying to take care of it myself but normally Tenant responsibilities are exactly that, although situations like this can be difficult to decide where to draw the line. The rent is at least $100 below market.

Ok thanks Michael. I'll try to confirm if that's accurate.

I have a single family rental that has a groundhog living and digging tunnels underneath the house. When the Tenant notified me of the groundhog we agreed I'd supply her with a trap and she'd try catching it. The groundhog came into the trap and took the food once but escaped squeezing out the back, so no luck yet and this has been going on for months. 

After recently reading the DE Pest and Bugs code, it sounds like the owner's only responsible for pests before renting, but after it's rented(free of pests) it becomes the Tenant's responsibility. I saw no indication of a groundhog before renting it out and the Tenant had already lived there for 7 months when she notified me of the groundhog. She said the neighbors told her that the previous owner had also been trying to remove a groundhog. She's been an excellent Tenant. I want to be fair with her and also want to make sure this groundhog is removed asap as I have no idea how much damage is being done from these tunnels underneath the house. 

Does anyone have advice on whether I should tell her it's actually her responsibility and she needs to have it removed, or should I continue working on other solutions myself to remove it?

Here is the Pest and Bugs DE code: 

(a) Owner's responsibility.--The owner of any structure shall be responsible for extermination of insects, rats, vermin or other pests within the structure prior to renting, leasing or selling the structure.

(b) Tenant-occupant's responsibility.--The tenant-occupant of any structure shall be responsible for the continued rat proof condition of the structure, and if the tenant occupant fails to maintain the rat-proof condition, the cost of extermination shall be the responsibility of the tenant-occupant.

(c) Single unit occupant's responsibility.--The occupant of a structure containing a single dwelling unit shall be responsible for the extermination of any insects, rats or other pests in the structure or on the premises.

 Hi Michael,

My wife is on the mortgage and we'd both be owners of the new LLC Series. Fannie Mae allows you to transfer into LLC. Is there a law stating that all owners of the LLC need to be listed as borrowers on the mortgage?

 Hi Jason,

Thanks for the info. So do you think that by transferring our house into our series LLC (with current mortgage still in my wife's name only) that could pierce the corporate veil?

Good to know. Thank you both for the input!

I wasn't aware that transferring property into an LLC doesn't provide the same asset protection as having purchased it with the LLC. If that's the case then there's a lot of investors wasting time and money using LLC's for properties they initially purchased in their names for the owner occupied financing.

It shouldn't violate the due on sale clause if my wife had 51% ownership in that series of the LLC. I copy/pasted below from Fannie Mae (Allowable Exemptions Due to the Type of Transfer) which states you can transfer into: 

a limited liability company (LLC), provided that the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

Long time lurker on BiggerPockets and very grateful for all the great info I've found here over the years. 

My wife and I are moving out of our current home and going to rent it out. My wife is the only one on that mortgage which is owned by Fannie Mae. We are both on the house deed. I have a Delaware Series LLC which as of now I'm the single member.

If I open a new series 50/50 with my wife and quit claim our house deed into that series would that violate the mortgage or trigger the due on sale clause?

I heard Fannie and Freddie now allow you to transfer their mortgages into LLC's but my concern is that I'm not a borrower on the mortgage and we'd be transferring into an LLC Series that I'd own 50% of.

Courtney,

At least 3 separate times within the last year NREIG deposited my escrow checks in the thousands of dollars into inactive accounts that were hidden from me. Thousands of dollars of my money hidden from me that I didn't even know I had because it's not shown anywhere on monthly statements. 3 times in a row is no coincidence. 

I sensed that money was disappearing so I spent many hours reviewing my mortgage escrow accounts and HUD statements etc and saw that thousands of dollars were missing/disappearing! If I didn't do this deep dive into my mortgage escrows, HUDs etc I would've never known and they would've kept my money forever!!

I reiterate that not once did NREIG notify me that I had thousands of dollars hidden for over a year in inactive accounts. I had to catch them before they even acknowledged it. Once I caught them they just say ok we'll refund you, with no apology or accountability, like it's no big deal. Not only that but they continued to deposit my escrow checks into these same inactive accounts. If an account is inactive how is it even possible to deposit checks into it??!!!  

Nobody there at NREIG seems to care at all. Courtney's reply here is the most concern anyone at NREIG has shown regarding their disgraceful conduct.

NREIG is the worst. Absolutely horrible. I'll make a detailed post at some point but don't have the time right now.