All Forum Posts by: Audrey C.

Hello my real estate colleagues, please help me with this question. A few of us have invested with this particular owner/developer with e.g. "AAA LLC" using a promissory note. Recently, I found out with a property search online, that he dissolved this LLC, to a "CCC, LLC" granting a warranty deed from the former to the latter. I am sorry if I am not using the correct verbiage but I hope you get the picture. There was no previous notification of this even happening. What happens now? Anyone who knows the legality of this and want to chime in? Thanks for your responses and time.

Thanks @Dave Van Horn.  I appreciate your feedback.  I have an attorney who advised me to sue on the Personal Guarantee.  Is this what you mean when you and Jay said to "pursue a judgement?"  But we think this person is overleveraged on ALL his projects.  He has four that we know of right now (yes four!!) but when I lent him the money, he only has the one that I am involved in.  The "friend" is not a real friend but a business associate.  He just went over his head and bit off more than he and his partner can chew.  

I spoke to the hard money lender and the foreclosure date is postponed to Feb 6.  I will explore the option of the collections attorney and will PM for this info.

Thank you all.  I will take what you all have said and explore my options.  I am leery of taking over the loan as I have already created a "hole" for myself.  I am going to talk to the hard money lender today who will post the foreclosure and see what we can do for a win-win situation with all involved parties.  @Dave Van Horn, if you are reading this, I actually invest in your notes company and would you care to help me out here with some advice?

@Dave Van Horn 

Unfortunately, I got into a situation with a colleague that I have invested with before, lending him money and receiving a favorable return.  Well his development projecct this time, is in foreclosure with the hard money lender.  Mine is the 2nd lien and will be wiped off soon.  I will bite the bullet but would love to know how this whole amount could be considered as a tax write off against my regular income on Schedule E (?), and lowering my overall taxes?  Can someone who has had this bad experience or even someone who knows the tax laws help me out please?  Thanks in advance!!

@Chris K. the city is Rixford, PA.  Typo error.  I have done seller-financed notes before but this is the first time I actually own the house.  I own a few single family homes and have always communicated via texts, emails.  But, I will take your advice and will email and follow up with a letter, whether regular or certified.  Thank you for stating the various routes to take--like ejection action and quiet title action.  I will research further what they mean in a case like mine.  Thanks for your help.

I have scoured this site for advice but nothing specific to my issues popped up.  I owner-financed a small property in Ridord, PA that is under an installment contract or contract for deed for 15 years starting Sep 2015.  So technically, I have the title.   I have spoken to a RE attorney 10 miles away in "town" and he advised that I send a Termination Notice be first and the owners have to cure their May late payment within 30 days of the served notice (or move out).  Now this will be June 9.  They have been late twice last year (2016)  for the months of April and June, due to his layoff and I agreed to somewhat modify their loan, so these two are added to the end of the 15 year term.   Since those last two that got pushed to the end, they have been continuously late every month with creative excuses.  This month is the latest that they have not paid as today is the 25th.  This time, I cannot even get them to respond with emails, texts, voice mails, and the served Notice to Terminate.  I even got threatened once by the husband that he is going to call their attorney on me as I am harrassing them.  I told him that I did not break any laws as I was following the terms of the contract.

I am trying to see whether anyone out there has experiences with the PA installment land contract laws and the timeline for default and foreclosure.  I know it is a judicial state.  Do I have no choice but  to  pay expensive attorney fees to get this done, as I do not live in PA but here in TX.  I think the couple are playing games with me and will pay May's  as close to the end of the 30 days as possible and they basically will owe me again for another month for June.  So collectively, they owe me 3 payments.  Please help!!

Hi Bryan, I do plan to keep it for at least 5 years or maybe more.  Thanks.  

I have this 850 sq ft "condo" that I am the owner/developer.  The bigger 1580 sq ft house already sold.  2 houses on one lot, 78721 zip code around MLK/Springdale/Webberville area in East Austin.  Very fast growing and highly appreciating area, correct?  Well, it fell out of contract twice.  Yes, twice!  No fault of mine, really.  People just change their minds/buyer's remorse.   It was first listed 11/20/16 and it is now 4/11/17.   Now, I told myself that if this happens twice, then it is mine to keep as I do not owe on a construction loan or to a hard money lender.  What do you all think?  This a "one off" project for me.  I do not like being a developer with a hired partner/project manager.  Any seasoned investor/developer out there who can give me some advice to help ease my feelings of shock and sadness now?  I guess I can hold it, rent it, and cash in later--say 5 years or more down the road?  As it is a small unit, there should be more room to appreciate perhaps?  Please advise.  Thanks to all who chime in.

Thanks so much for your help, Rich. 

I am in contact with a local attorney for guidance.  He is reviewing the contract.  May be the best route for me.  I was looking for the minimum time to wait before starting the foreclosure process in PA.  I think it said 60 days or two month's late payments.  I am not anticipating he will pay after two months, as he has disappeared from earth. :))