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03-19-2008, 08:47 PM #1
Renter
- Join Date
- Mar 2008
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- 1
Tenants Owe 10K in Rent and Won't Pay!
First, I would like to apologize if this is not the appropriate section for this thread.
As the title says, my tenants went 3 months without paying their rent. They have since been evicted, but it has been close to 8 months since the eviction with no money in sight.
What are my options? What would you do in this situation? Is there a way to get my money without having to deal with courts and lawyers? Possibly a lien?
What should I do?
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03-20-2008, 03:59 AM #2
You will have to deal with the courts, even to get a lien. I would talk to an attorney.
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03-20-2008, 07:40 AM #3
Condominium
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- Jan 2008
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- NW suburbs of Chicago
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To obtain a lien: First you will have to go to court to get a judgment against them. Then if they don't pay the judgment you can pursue an order of enforcement. That is where a lien come in. If they have property you can obtain a lien against their property. However, if they have other debt secured by that property your lien will generally be junior to the secured interest if it is perfected prior to your lien.
What about a collection agency? Generally speaking, you will probably need a judgment for an agency to be able to pursue this as well, a small claims judgment is all that is needed.
In other words, you need to go to the court system to seek remedy and even that is not a guarantee.
You may be able to sell the outstanding obligation at a discount. Honestly I haven't talked to anyone who has done that but would be interested in the process.
Knowing your options before you make a move is good, may be worth at least looking into.Last edited by TomAnto; 03-20-2008 at 07:47 AM.
http://tantoine.wordpress.com/ I do not hold myself out to be an attorney. Consult with a local attorney for proper advice. IRS Circular 230: This response is, written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.
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03-20-2008, 10:12 AM #4
Condominium
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- Jan 2008
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- NW suburbs of Chicago
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One more comment, the most common default judgments delivered by the court system are creditors' suits over an unpaid debt, mostly consumer debt.
http://tantoine.wordpress.com/ I do not hold myself out to be an attorney. Consult with a local attorney for proper advice. IRS Circular 230: This response is, written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.
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03-24-2008, 09:27 PM #5
Condominium
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tenants
I wouldn't count on getting the money back anytime soon. If they are tenants than I assume they don't own any real estate, but if they did, then getting a judgment attached to their home would be the best option, because then you can get paid when they sell the house. Otherwise, it's just an unsecured debt and good luck collecting on it.
Milan Cole, JMA Properties LLC
Portland Real Estate | Portland Condos | Oregon Real Estate
Eugene Real Estate | Vancouver Washington Real Estate For Sale
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03-25-2008, 12:45 PM #6
I would hire a "debt collector" that does not use conventional methods. If you know what I mean....
EVERBODY MUST PAY! one way or another.
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03-25-2008, 04:40 PM #7
if they didn't have money to pay you then, more than likely they won't have funds to pay you later even in you are able to get judgement against them. I would cut your loses and move on and be sure and start the eviction process much earlier next time and include strict due on clauses in your rental agreements, contact attorney for best options.
you can always take case to judge mathis, judy, or other and try and collect, but still unlikely that tenant will ever pay. they are probably doing same thing to next landlord as we speak, infact some use this practice to get from place to place. we had up to 150 rental properties at one point and were doing at least 2-3 evictions/week during some months. Ultimatley, we usually had to call constable and physically remove them from the property and set there stuff on the curb.Dallas Fort Worth Real Estate Brokerage offering assistance buying, selling, renting Commercial and Residential properties throughout the DFW Metroplex.
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03-25-2008, 05:27 PM #8
Fixer Upper
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03-25-2008, 05:30 PM #9
Fixer Upper
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I found that when a tenant moved out or got evicted from one of my properties they virtually disappear. Ten thousand is enough motivation for a tenant with nothing to stay hidden. Even if you have a social security number they are still hard to find in any kind of lawsuit. Most of these tenants go through jobs just like they go through residences. With cash jobs and living with others all the usual ways that you find someone does not work. I agree Dallas Broker that they are probably doing this to another landlord. They will take you as long as they can with excuses and promises to pay and just leave when they absolutely have to go. Unfortunately this happens all the time and the tenants have a way of keeping it going. With the ease of looking at court records online I have been able to identify a lot of problem tenants with past evictions before they even get a chance to rent from me. But it still happens to me and everyone else.
Craig Williams founder of WWW.rentalrealproperty.com



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