All Forum Posts by: Richard Lincoln

"Previous code allowed rent increases of up to 10 percent without landlords being required to cover the moving costs of tenants. This temporary change in code will require relocation assistance for any rent increase between now and March 31, 2021"

https://rentalhousingjournal.c...

Prolly just do nothing til April 1st IMO. Not a huge deal to hold off until then.

I buy lots of second mortgages and occasionally foreclose on the properties. I end up getting title to the properties subject-to the 1st mortgages. Well, then I get in to a pickle because sometimes I'd like to keep the properties but the 1st can call the loan even if I reinstate it and, often, the situation is troublesome with escrowed insurance premiums because I have to pay insurance premiums for which I'm not receiving any real benefit. The 1st mortgage is typically non-assumable.

So, I look to "refinancing" them, but the answer is usually that they won't refinance the mortgage if I'm not the borrower. (the former homeowner is the borrower) Hard money is possible, but it's so damn expensive that I may as well just sell the house and 1031 the sales proceeds in to a new property. Even refinancing a loan has thousands in closing costs. Selling the house has buyer agent fee.

Anyone have this problem before?

If you're not in the business of doing it on a continuing basis then it's capital gains // schedule D rather than self employment income // schedule C. https://www.hrblock.com/tax-ce...

There might be some multi-factor test from the tax courts or something about it.

It depends. One barrier might be whether or not the loan servicing company is OK with you doing it. Another usual barrier is licensing requirements which vary from state to state. The licensing req's have to be checked and look good. It can be difficult to sift through the state codes and regulations. I don't call the borrowers. I only take inbound calls on recorded line with automated disclosures. Then I have to be very careful of what I say, especially if the debt has been discharged in bankruptcy because there is the discharge order from the bankruptcy court to consider in addition to FDCPA and whatever state collection laws are there that have to be complied with.

Something I've really wanted to learn how to do for non-performing 2nds is to prosecute pro se foreclosure actions in federal court based on diversity jurisdiction. Risky business but could save so much on the lawyers and foreclosure mills take too long.

https://www.shelbycountytrustee.com/164/Taking-Title-to-Tax-Sale-Property

Could you let it go to auction and claim the excess proceeds? The properties can get bid up pretty close to market value there sometimes. Faster anyway and no realtors.

Agree with Mr. Seveney. The borrower's total PITI (+HOA, if applicable) payment should be lower than local rents to make it in the borrower's interest to perform rather than stiff the lender. It's doubtful the borrower has 5k sitting around and even if he did it may be a deal breaker.

I don't know that there's a pawn shop for note investors. I don't know what licenses would be required for that. I'd send it to foreclosure ASAP if I were you. The faster you foreclose the faster you get paid and the sooner you get to reinvest the money in to a new project.

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