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redhatter52 · Jan 21, 2009, 08:26 PM

My husband & I have owned 2 rental properties in Peoria, IL for less than 2 yrs. One is a single family dwelling, the other a 2 story duplex. We have already been to eviction court twice, the 2nd time on 1/20. This time our tenant stated our unit is borderline uninhab-itable and is taking US to court. I'm greatly disappointed the judge would even allow this, since this tenant hasn't paid rent since 8/08 and is simply stalling to get additional free rent. The code enforcement people have inspected our unit, finding only a hole in the bedroom wall and missing ceiling tiles in the kitchen (which we have already replaced twice). We go back to court on 1/30. Our primary concern is getting that tenant out and getting someone in who will pay the rent. Our GMAC mortgage is in foreclosure. The same day we were served our court summons for the foreclosure, we received a letter from a new mortgage company that bought our loan from GMAC. We don't know if we should keep our 4/09 court date or not, since Nationstar assumed the debt and GMAC is no longer involved. The mortgage on the 2nd property is a heartbeat from foreclosure. We couldn't even pay the 2nd installment of taxes on that property. So, should we make payments to the mortgage companies, knowing we'll probably lose them anyway, or should we save our money to pay for an attorney? We paid way too much for the properties (another long story) and want to sell them to get out from under the debt. But IF we are able to sell them, we'll be lucky to get HALF what we owe the banks. We already know bankruptcy is in our future.

excon · Jan 22, 2009, 05:56 AM

Originally Posted by redhatter52

We already know bankruptcy is in our future.

Hello red:

Well, I don't know what you're waiting for.

excon

Fr_Chuck · Jan 22, 2009, 06:58 AM

This is a problem with people owning rentals that do not have the money to pay the loan if there are not renters.

You can expect renters from hell often and part of the issues is that bad renters know how to play the system

Not saying you did not, but did you call the past 3 or 4 landlords of these peope before you rented, did you do a credit check on them and so on.

At this point it is a coin toss, sounds like you don't have the money to do major repairs when this tenant destroys the property as they leave ( expect it)

So you need to set down with the attorney or set down with the lenders and find out what your options are