All Forum Posts by: Lois S.

My single older tenant notified us she is applying to get licensed to do daycare in her home/our SFH.

In Calif, we are permitted increase the SD to 2X rent because of the daycare.  (We can't legally deny her the right to operate it out of our property.)  I'm writing a notice of the increase.

Should I just create a notice without citing the reason, or list the reason as something like "anticipated wear & tear, etc.?

If anyone out there has dealt with this in CA, please chime in.

Thanks!

Update: After an email convo with the title co, they prepared & sent us a Sub & Recon doc & also provided a notary.  

@Jeff S  - Thank you!  "How are you to know the total amount due if you don't know what day they will be paying you back?"  Exactly!!

Your letter is great. I'll be saving it for the next time!

I did contact the borrower, & she volunteered to just send me the interest due.

I will send her a Release of Promissory Note.

The title co. did not provide any sub & recon document for us to sign.

Their legal dept. copied & pasted some Calif regulations into an email & said they were done.

A realtor friend has one I can use, but honestly, I'm going to get some help to fill it out.

I looked up the title co on Yelp & see they have horrible reviews from what appear to be legitimate, experienced people.  

Thanks Tom.   The interest was paid in arrears, so March interest had not yet been received by us. (would have been due on April 1)

The title co didn't ask for our note, BTW.  

 I guess my mistake was not making it clearer on their payoff form.

And they closed on 3-17

@Chris - I think I understand what you say, but why would they subtract rather than add 1 day of interest?

Anyway, we'll talk to the borrower & see what she says. 

Thanks for the replies.  

I realize on a standard demand form it would have been more precise re: interest from x date to closing. 

Live & learn....

The settlement statement - on the line "Mortgage Payoff to 'our names' it listed the amount wired to us - which for some odd reason was the total amount MINUS one day interest.   Isn't that odd?

We are newbies to private lending.  We gave an 'interest-only' promissory note to our borrower a few years ago. Now our borrower has refinanced through a mortgage company.  The title company asked us for a payoff demand. They requested that we use their payoff statement since we held the note as trustees of our living trust. (Not sure why that matters)  The form stated:

"Total amount to pay off contract in full" $____   We filled in the principal due.

"Payoff amount good through"______

"Daily interest per diem" $________

plus wire instructions and our notarized signatures.

On the 17th of the month, they wired money to our account - in the amount of only the principal due, MINUS one day's interest!   After some back & forth with title, they are refunding the one day's interest,

However I told them the interest for this month was still due up to date of closing. ( I'm sorry we didn't use a standard form that states exactly dates of interest due from XXX to XXX.)

They can't explain how they figured the payment, but claim that's all we're entitled to.

Also, they say we must file the reconveyance ourselves with the county. 

We intend to talk with our borrower & explain the situation & hope she'll pay the interest still due. Would this be OK?

Any pros on this board care to comment on this situation?

Thanks in advance for any help.

@Jo Zhou You've gotten some good advice here.

In past, I've sent tenants to Catholic Charities. If they have funds available, they may help out with rent for tenant with an eviction notice.

I did a quick Google search and came up with several options.

http://sandiego.networkofcare.org might be one place to start if you want to research agencies to help out.

Max, Thank you. If the last day is a Sunday or a holiday, is that still considered the last day?

Thanks

Kathy, Thank you!