Oops I forgot to sue ALL the tenants.

TRUE STORY:

A landlord (I know) purchased, remodeled a triplex, then rented all 3 units.  In his efforts to get it quickly rented he dropped his standards.  One of the units was rented to a boyfriend and a girlfriend.  The girlfriend had horrible credit and no references, however the boyfriend had a good job, good credit and good references.

As with young unmarried couples renting or buying anything together, more often than not, it doesn't work out.  They broke up and the guy moved out.,leaving the girl (a party girl) behind.  She had a succession of  guys living with her.  The landlord was indeed paid in cash for one month.  Then came excuses and promises to pay.  One month he got $50, then nothing more.  Promises to pay and more promises as for another 4 months.

At long last the landlord was off to court.  But who to sue?  The original boyfriend was long gone (good for him).  The landlord had not required any of the intervening boyfriends to sign a lease.   So the landlord sued the girl.  Sure enough, the judge awarded him $3000 (expensive wall paper) and possession of the unit.


What did the landlord miss?

• Anytime you have a new resident in a unit - they MUST SIGN A LEASE !!!

• He forgot to SUE EVERYONE ON THE LEASE !!!

Had the landlord had simply named the boyfriend on the eviction., I could have quickly turn his judgment in to cold hard CA$H.

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 If you are a new landlord, please take advantage of the wonderful resources available today to educate yourself and maximize your profits.  A great place to start is your local not-for-profit Real Estate Investment Group.  I have been a member of 3 over the last 20+ years.  

Find your loal REIA at http://www.mynationalreia.com/clubportal/795files/directory.cfm?clubID=795&pubmenuoptID=11912

Mortgages and Judgments - What is the Difference

I buy Mortgages nationwide 

Paying or Not.  

Mortgages and Judgments:

1. Judgments are against the person. Mortgages are against the property, the associated note is  against whoever signed, this can include third party guarantors.
   
   
2. Judgments do not automatically create a lien on real estate. Once a judgment is recorded it becomes a general lien against all real estate that is owned or will be owned in a specific county for a limited period of time. Mortgages attach to a specified property only.
   
   
3. Keeping a judgments alive  usually requires renewing it, and the liens must be also renewed (or revived) Judgments may expire. Mortgages do not expire, there may be a 99 year limitation.
   
   
4. If you foreclose a mortgage on a property and there is a shortfall, some states permit deficiency judgments, limitations exits on when these may be obtained and how they may be enforced. If there is shortfall with a judgment, you can automatically pursue other property.
   
   
5. Whereas judgments generally have statuary rate of interest set by the state. The interest is not automatic, you must ask the court to apply it to the judgment. Mortgages interest rate and other loan terms that are set in the associated note.
   
   
6. To enforce a judgment, you only need an assignment of judgment. To enforce a mortgage you need, the mortgage, the note, and the assignment (some states have additional requirements).
   
   
7. Owning a mortgage requires you have office hours and a toll-free number. There are other requirements in owning and servicing mortgages. Such as accounting, answering questions and furnishing a payoff information. Judgments do not require office hours, or you to have verbal contact with the debtor.
   
   
8. Judgments and mortgages have different requirements for notices to the debtor.

9. With Judgments one must not to levey to much property. A Mortgage attaches to a specific property, matains it lien position (behind prior liens, taxes and in some locations homeowner association fees), regardless of the property value.
   
   
10. Un-secured judgments are relatively easy to discharge in bankruptcy. Mortgages, by definition are secured and not easy to discharge.
    Tip: With Judgments recording a lien at least 90 days prior to the debtors bankruptcy, may protect your interest.

I buy Mortgages nation wide Paying or Not.  

This above material is for educational purposes only. is not intended to be legal, accounting or any other form of advice, if you need that contact a competent professional in your jurisdiction.

Ultra Low Cost Skip Tracing

 SkipMax, is a really cheap and easy to use skip tracing site that anyone can use. I just have stumbled on it and gave it a try and it worked great.  There is no requirement for a locked room, locked file, store front, and a site inspection.  There are no monthly minimums.  You search only what you want and pay for what you search. 

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• Non-GLB products (No Applications or Agreements - start searching in minutes)
• No monthly minimums, sign-up fees, or monthly fees to access the data.

You can not obtain someone's social security number from this site.  However, the last few digits are show as confirmation.  Landlords please take note that you need to obtain and confirm a prospective tenants social security number before they move in.  See: What to find out about your tenant before they move in.

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Dangers of not Returning a Security Deposit on Time

In Pennsylvania & Ohio, when a tenant moves out (surrenders the keys) and provides his new mailing address, the landlord is required to account for the security deposit within 30 days.

The accounting must be in writing and be balance refunded by check and mailed within the 30 days.

Missing this date by even one day, can mean the landlord can not recovery any money for damages to the property.   The landlord is also responsible to pay DOUBLE the security deposit to the landlord.  If the tenant has to sue the landlord the landlord has no defense, will loose, and now owe court cost too.

The tenant now has a judgment.

The tenant should first ask the landlord one more time to pay!  Once the judgment is final, the tenant may record the judgment, and proceed to enforce it.

Usually the amount of money is too small to make it worth it to pay a lawyer to pursue, as they will want a retainer.  So the tenant is  left to enforce it.

This can be a time consuming endeavor, especially if you are not familiar with court processes for enforcement.  An easier and faster alternative is to contact a judgment enforcement professional to do it.

JudgmentCARE provides fast and efficient judgment enforcement.  It costs nothing to start, there are no expenses, or court fees to pay.

Ready to get started, drop me an email with your contact information.  Please include the landlords address, phone, judgment date, amount, court, and case or docket number.

Steve@JudgmentCARE.com

Bankruptcy - I heard that my judgemnt-debtor filed for bankruptcy- is it over or can I get paid ?

The real question that matters to you is, "Has my judgment been discharged in bankruptcy"?

As with any process there are many roadblocks and pitfalls along the way.  Let's look at a couple of  them.


Fist this debtor may not qualify for bankruptcy. There are limitations on how often some can file for straight bankruptcy.   He can file but the bankruptcy court will dismiss his petition.   Next there is mandatory credit counseling along with asset and means testing that will determine if you debtor is too wealthy for bankruptcy, or may have to repay some of his debts.  You must be notified of the bankruptcy filing. [If you a receive notice of filing, you must stop all collection activity.]  Failure to notify you, may cause this debt not to be discharged.  Three are certain types of debt that can not be discharged in bankruptcy.

At any point along this path, your debtor or his attorney can drop the ball.  If that happens the court may dismiss the petition.

Often assets are discovered or acquired during the course of bankruptcy.  You want to be first in line to get paid if that happens.

Bottom line is if your debtor files for bankruptcy, the game is not over unless you surrender.

steve a-t JUDGMENTcare ....com

Wage Garnishment - Are you missing out?

Did you know that a landlord can sue, win, and be denied wage garnishment to enforce a judgment?

You must satisfy at least one of the following

• Personal service on the tenant by constable or sheriff (posting is no good)
• Tenant files an answer
• Tenant shows up in court

If none of this happens, then you will be denied wage garnishment. Wage garnishment is the most effective  and fastest way to get money from most renters.  You do not want to loose this option!

Sosphisticated landlords often bait tenants in to appearing in court. Some landlords have said that they told tenants the following:  .

• If you don't go, the judge will give me everything I ask for
• If there is a reason you have for not paying me, you need to file an answer
• I am going to ask the judge for the maximum amount
• Did you know the only guaranteed way for me to win, is if you default

These methods may be especially useful when personal service can not perfected. 

Judgment Tips for Landlords - Before Your Tenant Moves In

Landlords have the ability to enhance the chances of collecting on a judgment by taking a few simple steps.

One of the most important steps in collecting, is being able to find your ex-tenant after they move out. The following measures will virtually guarantee that you can locate your ex-tenant.

• Get as many personal references as you can - and verify them
• Get as many credit references as you can
• Get banking and financial references - at the minimum bank and account numbers
• Get emergency contact persons,
• Is there a doctor they would want you to contact in the event of a medical emergency
• Contact information - nearest living relatives not living with your tenant
• All Vechicle infomation, VIN, make, model, and license, insurance
• Insurance information homeowners/renters policy
• In the event of a single tenant, find out who thier boy/girl friend is, name phone, addres
• Ask about thier work - are they licensed, belong to trade associations
• Get the right to pull a credit-report anytime during thier occupancy of if they owe you money

Everything above can help you locate your ex-tenant, when they do not leave a new address. It is harder to send a bill, sue someone, and collect on a judgment if you cant find them.

Please understand, that I am not saying that Pennsylvania or federal law permits every question. Cbeck with your attorney to see if any questions are prohibited. You may be surprised at the volume of information people will volunteer, if you just let them talk.

You shold also, as part of your lease, require your tenants to keep thier information current. Maybe have them fill a new form each year.