What happens if he just let the house go back to the bank?My husband ownes a house in town, and he rented it out to some friends so they could get ahead financially. Well, they screwed him and haven't paid the rent in 6 mo. All the utilities are still in his name, and it has turned into a money pit. He is paying house payments every month and they have torn out the... |
Logically this relationship is over. So go for all the legal measures to get this stopped. Once that is done, you can possibly catch up. Requires an eviction, then a civil court. Not that you will get any money out of these people.
Time to put this house on the market to stop bleeding money. You can evict them now or later.
Letting the house go back to the lender is NOT the thing to do. Better to sell it now.
Rental houses are great write-offs. If you can keep the house and get it rented to good tenants, it will be a great investment, and write off on taxes.
It sounds like you and your husband don't want to deal with tenants. So, why don't you hire a property manager? Even though I'm a property manager, my daughter hired a local property manager to deal with her rental, as it's an hour away from me. Plus, the property management company only charges her 9% per month of the rent. You can also write off the cost of the property manager.
You need to evict the current tenants. If the property manager you find won't do that before they will work for you (they may require you get rid of them first), hire an attorney to evict them.
My daughter is only 34, and she is looking at her rental as part of her retirement plan. By the time she retires, the rental will mostly have paid for itself (she's a little out of pocket each month right now), but then she'll have a house she can sell, or she'll have the rental income when she retires.
I know it's a pain, but I think you shouldn't be hasty. Good luck.
His lender is free to place a lien on his new house. You need to see an attorney before you let the home foreclose.
Most likely bill him for outstanding debt. Or send him a 1099 and he will pay income tax on loan amount forgiven. Poor money manager, you handle finances in the future
The bank will foreclose, then sue if it must to resolve any deficiency. Recourse is always allowed for RENTAL property. Deliver a pay-or-quit notice to the current scumbag tenants, then EVICT them. you are neglecting your rights and duties.
