All Forum Posts by: Sandy Uhlmann

 @Chris Seveney @Jay Hinrichs  Thanks for the advice.  This was a low value performing note.  Borrower (investor) seems to get in contact with me when I threaten to FC and says he will pay but then never does.  I have offered DIL or other options but he says he will get in touch with my servicer and make payments but never does.  I am tired of his promises and just need to take action.  This is the same note that is tax delinquent that will be going to sale in a couple of months if taxes are not paid.  I wanted to get an attorney before I get the taxes current.

The only good news in all of this is that I sent a door knocker out as many people in BP suggested.  The tenants actually contacted me and they would like to buy the property so I think I will come out OK in all of this. 

I appreciate all the advice-Thank you!

I am in need of a real estate attorney that can help me foreclose on a note in Muncie, Indiana.  Does anyone have any experience with a good foreclosure attorney in Delaware County, Indiana?

Thanks,

Sandy

@Wayne Brooks @Chris Seveney @Andy Mirza@Mike Hartzog  
I wanted to thank you for your input and advice.  It is much appreciated.  Clearly, I should have done more due dil with these two low value notes.  I purchased the note from an investor/rehabber that apparently purchases  property very cheaply then borrows money for the rehab by creating a note.  They rehab the property and rent them out.  Payments have been on time every time thus far.  I am just concerned that if something does happen, I don't have a deed recorded with the county thus other than my money trail and paperwork that is just a copy, I am left with no proof that I am the note holder not to mention that if the borrower created another note my lien position can essentially get changed if that note gets recorded before mine.  Furthermore, the servicer will want a copy of the recorded document too.

 My paperwork it titled "Mortgage Agreement" and "Promissory Note"  I do have a signed but not yet notarized copy of the  mortgage agreement.  Makes me a bit more nervous the fact that they are insisting that it is the NOTE and not the DEED that gets recorded.  I have offered to record the deed myself but I do need an original notarized copy from the borrower to do so-correct?  Is there anything that I can do to get this deed recorded or am I totally at the mercy of the borrower?

@Mike Hartzog

I purchased some very low value newly originated notes that are in first position.  I purchased them approx 3 months ago and discovered that they had not yet got recorded in the county records.  I contacted the seller/property owner and asked when I will get the recorded copy of the deed.  She informed me that she had not had time to get it notarized and recorded yet.  She also informed me that it is the NOTE that needs to be recorded and not the deed?????? She also informed me that I would be receiving a copy of these documents and not the original.   At this point, although she is paying on the note on a regular and timely basis, I am feeling a bit vulnerable as the note has not been recorded in the county docs.    What if she stops paying and I need to foreclose?  What is to stop her from selling another note on the same property to someone else if it is never recorded?  Is there anything that I can do to get her to record it ASAP?  Additionally, I was under the impression that I would be able to retain the ORIGINAL  documents and that once the note was paid off, I would return the deed to her   and file a satisfaction of mortgage with the county.  Please educate me with what documents get recorded at the county level and what documents should be returned to me?

Thanks,

Sandy

I had the desktop version until my accountant requested that I get the online version. (the one I was purchasing the sofware plan from) I did like the fact that I could have a VA do my books for me and I liked the fact that I could immediately scan in receipts from my phone. I am glad to know that the desktop version is still available for purchase. I am so tired of everything going to cloud/online versions.

 I had a NeatDesk and recently learned that it is no longer supported.  I don't think it is worth the monthly recurring fee of 10-$20.  

Has anyone used WAVE?  Excellent reviews and it is suppose to be free.

Thanks for the input!

Sandy

Excellent input and advice!  Loads of info gained from this discussion.  I am trying to figure out if I should just pay all or part of the taxes to avoid the property going to a tax lien auction and simply initiate a "regular" foreclosure on the mortgage or if it would be cheaper/easier to let it go to auction, let the purchaser notify me as I am the lien holder, then redeem the tax lien and initiate a tax lien foreclosure. I was not sure if the foreclosure procedure was the same either way or if the process was different when foreclosing on a mortgage vs foreclosing on a tax lien. 

As @Chris Seveney pointed out, according to the county website, these liens are purchased in bulk, so buying the lien myself is out of the question. It also says that If the lien is not redeemed within twelve months, the tax lien certificate purchaser may file a foreclosure action. I am making the assumption that the purchaser of the lien will have to properly notify both the borrower as well as myself as the lien holder before they can go through with the foreclosure action? as @Gene Chandler pointed out, the purchaser of the tax lien most often wants the interest associated with the tax lien rather than the property.

 @Ned Carey when you say 

"it is theoretically possible to buy the lien from the lien holder. You might want to do this if a tax lien foreclosure is cheaper or faster than a mortgage foreclosure." What do you mean by "theoretically"?  As the lender, do I not have the right to redeem?  I am assuming that "buying the lien" is different/can have a different outcome than "redeeming"? If I am able to buy the lien from whoever purchased it at the auction, it seems to me that that would be the cheaper way to get the property back.  

Wouldn't the junior lien holder also have this same option?  What would be the outcome is the junior lien holder bought the lien from tax lien holder?

@Andy Mirza I will get a BPO for sure.  I am comfortable with keeping the property as a rental or re-selling it as a owner financed note.

Thanks all for the input.  Learning so much from all of you!

Sandy

I am looking for a cost-effective, easy accounting system that is user friendly for landlords or anyone with a very small rental business.  I currently have been using the pro version of quickbooks online because it allowed me to put each of my rentals in classes as suggested by my accountant.  I had been getting a special deal on QB (about $25/month) because it was purchased from my accountant.  I have switched accountants and I see now that the online Pro version is $60/month.  My bank statement is one to two pages at the most.  I don't do any invoicing, I have no employees so this seems excessive. Can anyone else suggest a cost-effective accounting software that is easy to use and is more cost effective?  

Thanks,

Sandy

@Jay Hinrichs@Chris Seveney Thanks for the input.  I think I had a misunderstanding of the Ohio tax lien/tax deed process and was thinking that it was more like the process in Florida where the county essentially does most of the work for you and you don't have to go through the entire foreclosure process at all.  Even if I was to purchase the tax lien at the tax lien sale or redeem the tax lien that a third party purchases, I would still need to file for a foreclosure action anyway so I might as well either keep it out of the tax sale and pay all or part of the taxes and add that on as a corporate expense/advance on my note.  I suppose I can also have a field chase done at the same time as I confirm the value of the property.  At least I might be able to find out if the property is occupied with renters and what they are paying for rent.

Thanks again!

Sandy

This is from the Cuyohoga County Treasury site:

Taxpayer Information
The Cuyahoga County Treasury is not selling the property, only the delinquent taxes. The tax lien certificate purchaser pays the County the entire amount of the delinquency. They then hold the first priority lien.

What happens if your tax lien is sold?
A tax lien certificate is placed on the property. The lien is recorded with the County Fiscal Office, Transfer and Conveyance Department.

If the lien is not redeemed within twelve months, the tax lien certificate purchaser may file a foreclosure action.

Under ORC Section 5721.38, the property owner has the right to enter into a "Redemption Payment Plan" beginning on the date the tax certificate is sold under ORC Section 5721.33 and ending on the date the decree is rendered through foreclosure proceedings (ORC Section 5721.37 (F)).

The property owner may redeem the tax lien certificate anytime prior to confirmation of the Foreclosure Sale in terms of “cash equivalent funds” plus payment of additional charges and costs if applicable.

To avoid the sale of a tax lien certificate on your property, you must pay your taxes in full or enter into a payment plan with the Cuyahoga County Treasury . You may also be responsible for additional fees and costs associated with the tax lien certificate sale.

I own a first trust deed that I paid very little for-under $15,000.  It is a duplex renting out at $800/month and has a zillow value of just under $50,000 in Cleveland, OH.  Recently in doing some research, I noticed that the property taxes are not being paid.  I contacted the county who told me that it would be eligible for a tax lien auction as early as this July.  When I contacted the gentleman who was the previous owner of the note and who is carrying back a second, he informed me not to worry and that if this happens, the purchaser of the tax lien is required to notify the lien holder at which time I would have the option to buy the tax lien from the purchaser for the price they paid plus whatever interest rate that county pays for their tax lien certificates. (Redeem it)

I have a couple of questions related to this.  If this happens, do they notify ALL the lien holders of the tax lien sale and do all of the lien holders have a equal opportunity to redeem?  In other words, if the second mortgage holder is also notified and he redeems before I have a chance to is the property his free and clear and do I totally lose out?

I realize that I can just pay all or part of the taxes to avoid this going to sale.  Recently, this borrower has been a spotty payer because I have since learned that the property has been sold subject to my first lien.  Since this was a very low dollar note, I am sure there was no due on sale clause but I can certainly start the foreclosure process because the borrower is behind on payments.  I am wondering if in the end it is cheaper and faster to let the note go to tax lien sale and redeem it vs going through the cost and time of the foreclosure process?

Any insight would be appreciated.

Sandy

I found a property that is a good price but needs a fair amount of rehab to make it appealing to renters and/or homeowners.  If I do an extensive rehab the property should hold it for at least a  year before selling it or should I sell it immediately and be subject to all the "dealer status" taxation. Are there other ways of handling it so I am not considered a dealer?  If I sell it via owner financing am I still subject to the same tax treatment?  What about if I rent to own or lease option it to my tenants?  I am just trying to figure out all my options.  Thanks for the input.

Sandy