Starting Evictions: Owner financing question
Posted by: Mo
Posted on : 8/2/2011 2:05:21 PM
I'm curious, if your payments are due on the 25th, what day/date do you file eviction proceedings? The 5th day after the due date when you send a letter/deliver a later of Notice of Default, meaning the 30th of each month?
When do we get them to pay us legal fees? Let's say it costs you $150 to begin the eviction process, and a note is delivered to their house. However, while this was happening, they paid you your PITI and the 5% late fee. Do you just eat the legal fees each time this happens?
EDIT: Also, I'm curious if you have a demand letter template to share. I can draft my own, and am about to, but am curious if you have a template you would be willing to share.
Edit 2: In your demand letter, do you say to pay via money order, or is a personal check OK since they always pay via personal check?
Maybe I can help
Posted by: RSB
Posted on : 8/4/2011 7:27:53 PM
Not an expert but let me see if I can help. I had a few people not pay on properties I held in Florida.
Is there any grace period in your contract?
How many days after the due date does the late fee kick in?
How many months behind are they?
You seem really eager to kick these people out. Frankly I made a lot of money on late fee's on wraps.
Are the people responding to you in any way?
Do they answer their phone?
A lot depends on what the Foreclosure period is in your State. If your State has a long period it is sometimes better to just pay the people some cash to move and leave your property broom clean. You need to make sure the Title is clean and just have them Quit Claim the property back to you. I know this idea sounds terrible if you have never done it before but it is the path of least pain. In Florida at the time it would take at least 6 months to Foreclose and I would have to pay my payments on the underlying loan that whole time. I would have my lawyer send them a certified letter that says if they vacate in 15 days and QC they would receive $800 (amount varies) for the keys and a broom clean house. I had to do it twice and both times the people took the cash and got an apartment. It ended up being a friendly exchange.
My first step though was to send them a late payment letter including the late fee cost with a warning of potential foreclosure before you incur any legal costs.
William knows a lot more than I do but maybe I can steer you in the right direction.
Re:Maybe I can help
Posted by: Mo
Posted on : 8/12/2011 8:41:03 PM
I am not eager to kick them out, I just wanted to get the process started earlier in the event they don't pay. Some people wait up to 3 months before starting evictions, and I just don't want to pay the mortgage for so long - I want to take action as it saves money. I probably just came across that way, I was just meaning to be more cost efficient.
I did, however fail to mention that they were being non responsive for a couple of days. They did finally call back.
I am in a quick foreclosure state. I'm glad you had two good occasions, thanks for sharing.
Good follow up post - thanks RSB.
Re:Starting Evictions: Owner financing question
Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 8/18/2011 9:54:16 PM
As the contract says in the course, if their payment is due to me on the 25th of the month previous and they have a grace perion until the end of the day on the 1st, I serve their 3 day notice on the 4th and file for the eviction on the 7th. No exceptions.
At that point for them to reinstate and not proceed with the eviction, they pay in full (rent, late fees and reimbursed court costs).
I recommend you see what the standard is in your area for what the court requires before you can file in your area. Is it a 3 day notice, a 5 day notice or something else? They probably also have a standard form they recommend.
If I have to file for an eviction they have to pay with a bank check or cash. No presonal checks.
How beautiful would this world be if we all practiced what we preached?