All Forum Posts by: Stan C.

A tenant stopped paying in February 2020, I got eviction order and waited legal time frame for writ of possession. 3 days before that, maratorium on evictions happened.. So the tenant stayed there for 3 more months, totalling 6 month of unpaid rent. Finally got evicted by Sheriff in July after their moratorium was lifted. Tenant basically destroyed the unit, requiring repairs. The money is likely not recoverable from the tenant.

I applied for forbearance which will end in September but if I put my loan into deferment (putting debt at the end if terms) - then I won't be able to refinance it, taking advantage of much lower rates that I got my loan at. Also, it's my understanding that I won't be able to apply for a new loan if this loan is in deferment.

So, figuratively speaking, government stepped in and put me into debt by preventing me from exercising my rights by evicting a non-paying tenant. It's also preventing me from refinancing. Is that any different from theft?

An advice from experienced investors on how I could handle this?

Are there class action lawsuits on this? Any idea how I can hold government accountable for this unconstitutional act?

5 Votes

Originally posted by @Mitch Harold:

Ive have read a couple stories about property taxes being due in july in nyc, are they due every month? I have to assume they are substantial, but do you care to say how much they are?

I don't know since I don't own properties in NYC. But property taxes are insanely high there.

1 Vote

Originally posted by @Matthew Hintz:

@Stan C. Are you fearmongering?

No, I'm jot. I'm just desperate.

The tenants have been fine for 2 years until they got divorced and stopped paying.

0 Votes

Originally posted by @Chris Martin:

Originally posted by @Stan C.:

So, recent government order to stop evictions is basically an order to stop paying rent and live in our properties for free.

In NYC landlords are about to go on strike and will not pay properly taxes in return.

Are there similar actions investors taking in NC? Any petitions on that matter? Any organized efforts that you know?

I am not aware of any 'similar actions' taking place in NC. Not paying taxes (not late in NC until 1/5/2021) is not a viable solution. I disagree with the concept "government order to stop evictions is basically an order to stop paying rent" since most tenants are paying rent and most tenants are not unemployed.

Most do pay. But in my particular case, she will never pay, ordered to vacate the property by Court, but forbidden to vacate by the maratorium on evictions.

So the government is telling her to vacate instead of paying backlog on rents, but at the same time to stay in the property while NOT paying. Why not paying? Because she's ordered by Court to vacate instead of paying.

0 Votes

Originally posted by @John D.:

Stan, your heart is pointed in the right direction but resistance is futile, as they say. My advice is to step back from the emotion of whats happening and cool down. The foreclosure process takes a long time in NC and forbearance is commonly used to help a temporary crisis (such as we have) not become a credit smashing disaster.

In truth, most tenants are paying and will continue to pay. I have the same problem now with 2 tenants that refuse to pay or move - both were problematic prior to Covid, as was yours.

Barring a self-inflicted wound by acting rashly while under stress, there is very little chance that this will cause you to lose the property. Your first move is to point the tenant to all available resources and encourage them to pay at least the current rent. Back rent may be a lost cause at this time. Second move is to contact your lender immediately with a request for forbearance and possibly a mortgage modification. By September, the process of summary ejection and eviction should have run its course and by November or Dec, you and your lender should be back on track.

If you have not filed paperwork for Summary Ejection, do so now. The reopening of the courts will have a backlog of cases. You should also be able to demonstrate to the court that you worked with the tenant to the fullest extent but they did not cooperate. The courts can be expected to favor tenants in the aftermath of this mess, so behave better than your non-paying tenant deserves. Anything you text, say or email is likely to find its way into the magistrate's court room and possibly damage a future eviction.

My feeling is that this quarantine will last for years, at least two years.

The tenant was evicted through court before covid but remained in the unit, writ of possession with sherif was canceled due to maratorium on evictions. So I don't need to prove to court that I'm trying to help the tenant, since there's a court ruling on eviction already...

My forbearance with lender expires July 1...

0 Votes

Originally posted by @Victor N.:

Talk to your mortgage lender. Not paying property taxes will just cause you to incur penalties, interest and eventually lose the property. Learn the laws on foreclosure and property tax sales in your state to see how much time you have before things happen. Cash for keys maybe

These are the links. They try to make it into a law in response to the maratorium on evictions, which is also a law. So if the State allows tenants to live in our properties for free, thus my property cannot bring any income, only losses, then why would I pay taxes on it?

You say "why don't I sell it?" Who will want to buy a property with negative income due to a State law that encourages tenants to live in that property for free?

https://www.change.org/p/gov-c...

https://www.google.com/amp/s/t...

0 Votes

Originally posted by @Sylvia B.:

Originally posted by @Stan C.:

So, recent government order to stop evictions is basically an order to stop paying rent and live in our properties for free.

In NYC landlords are about to go on strike and will not pay properly taxes in return.

Are there similar actions investors taking in NC? Any petitions on that matter? Any organized efforts that you know?

Oh, that sounds like a wonderful idea! **eyeroll**

The state doesn't care about your protests. Withholding taxes due is not leverage, it's stupidity. The state will simply sell your real estate to get the taxes they are owed. They don't care why you don't pay, they just follow their procedures.

Ok then, I'll loose my property. I hope you don't.

0 Votes

Originally posted by @Basit Siddiqi:

@Stan C.

How many units do you have and what percentage did not pay you rent?

You should listen to Brandon Turner's plan to speak with tenants. It hints that you should indicate to tenants that rent is still due.

I own only two units (a duplex), one is not paying for 4 months. That makes it 50% of units not paying... Eviction granted but postponed indefinitely due to you know what...

0 Votes

I'm not seeing other options. Banks won't forgive the payments. State basically says: "you don't pay rent, and you - yes, you - loose you properties".

0 Votes

Originally posted by @Russell Brazil:

I sure do hope that does happen. Id love to pick up some nice properties in the subsequent tax sales.

Are you serious? And you're sure you won't be on the side that looses homes, instead of buying cheap?

0 Votes

All Forum Posts by: Stan C.

Stan C. has started 21 posts and replied 96 times.

Post: Can I sue state government for damages by moratorium on eviction

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine

Post: Property tax strike? How to deal with lost rent due to quarantine