Check usury laws in each state, Mo. is 10%.

But it is still interesting to see the SEC to change the law, it could be a good and bad thing.

@Matt Liu , I cannot speak much to your state law, it is wildly different than my states, but the thing that stops him from filing if you are not in breach, is contract law.

That's why people with ideas that try harder to circumvent laws than just follow them are dangerous. :)

Again, have reserves, know the law, meet with an attorney to review your lease and the eviction process *before* you need to do it.

Then you need to know the finance side, finance regulations, collection laws, insurance assignments and under what circumstances you may keep loss proceeds, need to know notices required and foreclosure procedures.

I myself went over and looked inside and out, already knowing the California State laws and the Renters Rights, there are numerous code violations all over the property.

Does he have a reference to some law to back up that claim?

If she was ever served with a notice of foreclosure, even if the lender did not follow through with the sale, she can't do anything with the property except sell it and payoff the lien.The law allowing for the forgiveness of debt to avoid taxation is about to expire so now that she has waited she may have a tax liability on amounts written off from her underwater property.A short sale would be best, if she qualifies, but to do a short sale the owner must have a financial inability to pay, I'm not sure the bank has to agree if she is sitting on cash.IMO, she needs to pay as agreed, catch up the loan, then lease it over time allowing the value to come back and then sell it. :)

The laws and court system is obscenely tenant friendly, and so there are a lot of crazy punitive laws that landlords have to follow.Also, good luck getting rid of tenants in chicago.