Liens Against Real Estate
Would it be beneficial for me to place a lien against real property in the below scenario?
I have a tenant that owes me a significant amount of back rent (three months, right now). He is going through a terrible divorce and all his money is going to the wife for support and he is unable to pay his rent right now. The final hearing is in a few weeks. He believe he will get a significant settlement out of the divorce and will be able to pay me at that time. He asked and I agreed to this delay, temporarily, as he has been renting from me for the last 5 years and has been an excellent tenant. He has also borrowed $5000 from me in the last few weeks. My question is, in this situation, would it be beneficial for me to place a lien against the property that he and his wife own? He feels sure that the judge will award her the house and she will have to refinance it in her own name. Wouldn't a mortgage company require that the lien be paid off before the refinance? This scenario is in the Commonwealth of Virginia. Any insight you could give would be greatly appreciated. I do not wish to impact my tenant in any way, but I would like to recover my money.
Re: Liens Against Real Estate
How about having him ask his lawyer to draft a lien against the property settlement from the divorce?
Re: Liens Against Real Estate
I would do something to make sure that they do not decide to stiff you. I had a similar situation and in the end I was the loser in the deal, so I had to track the individual down in another state and after a lengthy process I finally got a judgment against the person and now I am burning more time trying to collect on it. If I had it to do over again I would have taken immediate action to make sure I would be able to recover my damages with the least amount of effort possible. From now on when a renter is late I post a 3 day notice on their door to pay or quite. You have to be firm because people will walk all over you as a landlord if you are not. It is much easier to find a new tenant than to deal with someone who owes you rent which makes them a flight risk. It is too easy for them to just walk away! Considering the amount the guy owes you, I think that he is a MAJOR flight risk, considering the amount he owes you. It is too easy for them to walk without any immediate consequences for the act.
We have law because man lacks the inherent ability to control the instinct of survival that is often triggered by the need to preserve oneself, meaning, our nature is not to look out for anyone but oneself especially when it comes to money and other aspects of personal gain. Trust no one when it comes to self preservation in any aspect.
FYI, if the day comes when have tried to get in contact with your tenant for a week straight and they do not return your calls, you better bend over because you are about to get #@!$?%. Further, only an estimated 25% of those who obtain a judgment actually collect on it.
Hope this helps!
Regards,
Re: Liens Against Real Estate
My experience with evictions left me with the firm impression that most tenants will accept any kindness or courtesy extended to them, but that at the end of the day they (literally or figuratively) won't repay that kindness.
Re: Liens Against Real Estate
Thanks for the reply. This actually worked out quite well for me. I have recovered all but $1000 of my money plus the back rent. My tenant took on a second job to pay me since in the final hearing of the divorce the judge awarded his wife everything. This man has been a good tenant always willing help out anyway he can. I have been thankful to have such a good tenant and I feel sure he will finish repaying me. Aaron you are correct, this courtesy, extended to most people would have turned out badly, but there are some still out there that keep their word.
Re: Liens Against Real Estate
You are fortunate; that is very rare.
I never loan a friend or colleague money and expect to get it back. Thus, I rarely loan money.
Sorry to hear about your friend...