Dave:
I am not sure legally what you can do to non paying tennants while you or a receiver are supposed to be collecting rents awaiting the end of the redemption period of time to expire.
Perhaps you have evicition rights that you or a receiver can explore. At the very least you might sternly advise the non paying tennants that when your legal matter is settled, they will owe ALL rent current and past that is due otherwise they will be evicted.
I would suggest you seek legal counsel from an experienced Real Estate legal practitoner.
I was holding mortgages on two rental duplexes. I foreclosed due to non-payment by the owner. The redemption period runs through October 2001. The mortgages (standard Fannie Mae issue) require hazard insurance which was paid in full at closing through September 2001. The insurance agent has been funny about giving me info to confirm the policy hasn’t been cancelled. I called the payor and told him to get me the info or I would charge him for another policy.
Is the insurance agent obligated by law to provide this information to me? Assuming I get confirmation from the insurance agent, should I still put my own policy in place to be safe? The hazard policy runs about $750 per property, so it isn’t cheap.
Dave;
With a written request to the insurance agent or to the actual insurer, you should be able to get a response confirming that the hazard insurance is still active and in place or was cancelled.
I see no need to pay for additional “forced place” insurance if current coverage can be confirmed, as you it will be doubtful you will be able to recover such premiums.
Thanks for the reply. I have another question maybe you can help with. I exercised my assigment of rents after the sheriff’s sale and am collecting rent from both tenants in one of the duplexes (the other two tenants are ignoring me). The paying tenants are now calling me directly with maintenance problems. Since they’re paying me, I’m committed to providing them good housing.
The problem is, I don’t have possession until the redemption period is up so legally I can’t authorize maintenance. For instance the downstairs tenant called last night and said the tub and sink were plugged up, they’re calling a plumber and will deduct it from the rent which is already a week late (funny timing, eh?).
Ideally I could work with my payor to handle these things but I’m not sure he’ll be cooperative particularly since he’s not getting any rent now. Any suggestions?
P.S. Thanks for all your advice here and elsewhere.