Can u see something I dont?(long) - Posted by SteveG_Pa

Posted by Brent_IL on November 03, 2003 at 20:09:27:

Back rents are handled the same way in Illinois.

The eviction court will probably not decide if there was an existing contract and anything pertaining to that arrangement. If the court couldn’t kick the oral contract on the statute of frauds, it would rule on the eviction and send them to equity court to decide the rest.

Can u see something I dont?(long) - Posted by SteveG_Pa

Posted by SteveG_Pa on November 03, 2003 at 18:22:05:

Hi, I have a seller who let a guy move in without a lease or anything, the guy said he was going to fix up the place a little, then get a city grant to finish fixing and buy the house, so my seller told him “ok”. The house is eligible for this grant so the seller didnt think anything about it. Now the guy has been there since June not paying any rent, although he has done alot of work inside. Now my seller is going into foreclosure because this guy hasnt paid anything (he was supposed to make loan payment), he told seller he would be there last Fri with 2 payments, he didnt show and is hiding now. So this seller calls me yesterday. Hes willing to do sub2, taking no cash, just wants out.
Now my question, can seller add up total of rent that was supposed to be paid to him, and use that as payment for the work this guy has done inside, and evict him with no problems? It was a verbal contract between the 2 as far as buying it.
Now about buying it, as I said before, owner just wants out, heres the particulars:
FMV around 42k
Balance about 40k
2 years back taxes about 1k
Repairs 10k(?)
I dont see a deal here, but the bank said they would consider a discounted payoff, and owner would sign over deed. The only deal I see is if the bank will take a 50% payoff, and they know it needs repairs, and the contact at the bank has been EXTREMELY helpful to these people, it was supposed to be filed at the courthouse today but she gave them an extension to try and do something, she knows about them trying to sell also.
So heres what Ive told seller to do, write up that paperwork for the rent as pay for tenent, start eviction, talk to bank and tell them I will be calling tomorrow. Any thoughts on this?

Thanks!

PS. These sellers could be considered friends by association (old couple), so we would like to help them even if we dont make anything on this, the man seller has run into recent health problems, and theyve sold all the properties they owned except this one, now they rent and Id like to keep this foreclosure off thier record if I can. Thanks again

Steve

Re: Can u see something I dont?(long) - Posted by Jim (MD)

Posted by Jim (MD) on November 03, 2003 at 20:01:07:

Here in MD, eviction proceedings are not narrow in scope, and any money claimed to be owed will be settled in rent court when determining whether to evict. I do not know how this is handled in your neck of the woods.

If I were the owner, I would offer the tenant a few dollars to move by a certain date. If the tenant acts like he is going to stay put, don’t go to rent court without an attorney.

You say there was a verbal contract between to two as far as buying the house, was there any discussion as to what the rent would be, or when it would be paid? If not, how could the seller just add up what he thinks he is owed and bill the tenant?

Re: Can u see something I dont?(long) - Posted by Brent_IL

Posted by Brent_IL on November 03, 2003 at 19:09:39:

The seller adding up the total of the rent that was supposed to be paid to him, and using that as payment for the work that the tenant has done inside, without mutual agreement, is one-sided. It?s more in the nature of an allegation. If the tenant accepts his premise, he?s good to go. If the tenant says no, evict anyway. Eviction proceedings are very narrow in scope. They are designed to establish who has the right to possession. Any disputes about monies owed will probably be relegated to Chancery Court.

I’m more cynical now than I was a few years ago, so I can?t see anything good happening here. The payments and fees are accruing. If the bank took $20,000, you?d have to work hard to break even.

There are inexpensive or free legal consultation services available to those in need. The guy, whom the owner says has done a lot of work, might just be enterprising enough to place a mechanic?s lien on the property for the work he?s done. A $200-a-month lawyer could probably keep him there for a year. It?s cheaper than rent.

I?d get a list of needed repairs to the bank, and offer $10K up to a top counter-offer of $12K. Let your friends give the bank a deed in lieu to avoid the foreclosure, but it?s almost as bad. Someone has to take a loss on this one. Evidentially, the owners believe that it?s a good idea for the bank to take the hit.