Foreclosure/Rental MESS (mortgage, credit, lawyer)

[wackyspy]

Has anyone come upon a similar situation? I appreciate your insight. A year ago I bought a house with a partner. I put up the credit score, he put up the cash. This was one of many properties he got involved in. Great guy. Great friend. The intention was at the appropriate time to do the proper paperwork and he would own the property via the title, etc.

In the meantime, I'm one of 2 families renting in the building. Now due to the market but mostly due to no tenants paying their rent, all the properties are in danger of or are already in some form of foreclosure. The situation however is this. The foreclosure documents were sent to all who live at the property and from that point the other family has decided that since they may have to move, they will no longer pay rent. They are on a month to month lease. Am I correct in thinking that as a renter, you cannot simply decide you won't pay because you don't like the situation? Likewise, you have no say in what your rental monies are used for, your only choice each month is which check in the checkbook to use?

This guy has really gone off the deep end and there is no talking to him at this point in time, in fact he goes out of his way to avoid me. I don't want to stir thing up too much because if he really wants to leave it's easier and quicker if it's on his own accord.

[veuvegirl]

Start eviction proceedings immediately. Unfortunately renters have more rights than landlords. A friend of mine went through this and it took well over six months to get them out.

[RabbleRouser]

New Jersey Law Network ~ Property and Real Estate Law

This link is to the NJ laws for Landlord Tenant. Best of luck.

[Gessa]

So let me see..you have tenants who know that the landlord is in trouble..and they could be evicted any time..but (in reality) you still expect them to 'honour' thier side and cough up the rent? What would you do??

[Gessa]

& dont worry about eviction, coz it will probably be foreclosed long before.....

[Sergio M]

In this situation, wouldn't it be wise, as part owner, to start collecting the rent and paying the mortgage on your own? You may want to have some type of management agreement with your friend. You may want to put the house up for sale to satisfy the remaining principal. Also, are the utilities being paid? It's only a matter of time before they shut the water, then you may be responsible to put up the other families in temporary housing.

[colleeng47]

Originally Posted by Gessa

So let me see..you have tenants who know that the landlord is in trouble..and they could be evicted any time..but (in reality) you still expect them to 'honour' thier side and cough up the rent? What would you do??

Why wouldn't they honor their agreement and pay rent for a home they are living in? What's happened to integrity these days?

[Argj_Construction]

This makes me worried I want to buy my first rental and all I here are these horror stories of people not paying their rent. It really takes 6 months to get someone out your house?

[JerseyG]

Start the eviction process against the non-payers.

Then, hire a lawyer and get the foreclosure put-off for as many times as you can.

While the lawyer is putting off the forclosure, call your mortgage holder and work out an agreement with them...explain the situation and see if they will let you work out some sort of a payment plan until you are caught up. Don't do this through your lawyer - he'll charge you. A good-faith effort can save you.

Take the non-payers to small claims if their debt exceeds their security deposit and or damage. You'll win. Landlords always win in small claims as long as you can PROVE everything you state (take pictures, have an iron-clad lease, etc).

Good Luck.

[Sergio M]

Originally Posted by Argj_Construction

This makes me worried I want to buy my first rental and all I here are these horror stories of people not paying their rent. It really takes 6 months to get someone out your house?

Make it clear to your tenants that this is business. They have a five day grace period to pay rent, if the rent is not paid by the sixth, file for non-payment. (It is easy, fill in the blanks.) You will be in L/T court about the 20 th of the month. The will need to pay to the court. The judge will not allow tenants to live there without paying rent. You do not have to wait six months.