Got to talk to tenant about bankruptcy :o(

[ssmdem]

I'm so not looking forward to this conversation, but we're at a point that we've got to talk to our tenant about our upcoming bankruptcy. I hate this for her because she herself is in a similar situation, and she poured her heart out to us begging us to let her rent the house as she had nowhere else to go. She's been on time with the payments and no problem whatsoever. However, she just left us a message asking if we minded if she spent her own money and had the gate widened so she could get her lawnmower back and forth through the gate. She wants to try to get the lawn in better shape and get some grass growing. UGH!! I don't want her blowing her money (and time) on property that's going back to the bank shortly anyway. The rent she pays only pays the first mortage and about half of the credit line, so our attorney had told us to just keep the first mortgage current and pay the extra towards the credit line, even though it's not satisfying the minimum payment -- seemed to me it made more sense to make an additional principal payment on the 1st mortgage and just forget the HELOC altogether (it's an interest only loan anyway) -- they're both at the same bank, so I guess in the long run, it really doesn't matter.

I do think I'm going to tell her to deduct whatever she spends on the gate from her rent and just give us the receipt. I don't want her to spend her money on this, but ideally, she is going to be there through the summer and will need to keep the lawn mowed, so she really does need to get it done.

[junker]

in your other post you mention you are going to let the rental go....so why not give the lady a break...shes been through enough and you are about to ...her over with a foreclosure and she is going to have to move anyway...tell her about her impending move...and let her live there rent free...so she can save up for the move...doesnt sound like you feel tooo bad about s..... ing her over.....if you are going to let it go in foreclosure and all the rent money does is pay for the 1st and part of second..it doesnt make sense to keep paying..and taking her money....of course it probably makes more sense for you to let the sherriff let her know when he boots her out....

[ssmdem]

Since you don't know me and have no idea what we've been through, I'll just assume you really are the jerk you sound like. I'm going on the advise of my attorney who cautioned against letting her live rent free and stopping the payments now - they will simply foreclose sooner on the property. We're trying to give her a place to live as long as possible. If she chooses to walk now, that's certainly her option to do so, and I wouldn't blame her a bit. If I didn't feel bad, I'd take her money and not pay the mortgage. Her rent pays all but $150 of the HELOC, and I doubt seriously the bank is going to expedite foreclosure when they're still getting $1000 a month from us. We are not behind on any payments right now - we're simply planning for the inevitable. We're telling her next week in order to give her plenty of time to figure out what she wants to do. I'm not kicking her out - if she wants to stop paying rent, we'll simply stop paying the mortgage - that's her choice to make but certainly gives her less time to have somewhere to live.

We're losing our home in this process as well - a home that we built on our own, designed and dreamed of my children growing up here, the home we wanted to live and die in. You have no idea how badly my heart is being ripped out with all of this. Do I feel bad for her - of course I do - that was the point of my post in the first place. I certainly never thought some idiot would interpret it as I'm doing something wrong to someone -- what do you suggest I do? I haven't slept in weeks - my diabetes is out of control because of all the worrying I'm doing with the mess we're in -- so, if your goal was to upset me, then I guess you accomplished that. Although I came here for support and advise not to be put down and insulted by someone who doesn't know anything about me and my family.

Perhaps it's just best if I just save my questions for my attorney. I do appreciate the constructive help that I have received from many of you on here. It's brought to mind questions that I didn't even know to ask and helped me to get a clearer perspective on what the immediate future holds for us. Your help was greatly appreciated and I do thank you.

[Flamingo]

It appears the OP was going by his attorney's advice in this matter and the renter in question is an adult and can make her own decisions and was given all information as to the bankruptcy. The OP has posted a very informative situation from another perspective as to a renter and what could be encountered. There is no need for name calling or insults and if it continues this thread will be closed and further action taken. The PM feature is available for arguments. Thank you.

[Bell30656]

The OP has an obligation to continue to collect rent on the property as long as he/she owns it. The fact that the OP is not paying the mortgage is irrelevant. The rent paid by the tenant is to pay for a place to live. She has this and thus rightly owes the money each month.

Once the property is foreclosed upon the tenant then no longer has an obligation to pay the OP for the rent.

[junker]

it seems to me, the tenant AND the op have the same obligations..the tenant to pay her rent...and the op to pay her mortgage...when the op stops...the tenant should be able to stop...as she is the one being kicked out by the sheriff...if the tenant continues paying.all she is doing is helping the landlord, who will probably just pocket the money instead of paying mortgage...and she should do that....again her lawyer is giving her BAD advice..WHY would you continue to pay on a mortgage when you KNOW it is being forclosed on...the foreclosure is going to take roughly the same amount of time, give or take a couple of months...so why not give the renter a break...

sorry op..my girlfriend says i have this annoying ability to push the WRONG buttons on people...

[helpmeout]

it seems to me, the tenant AND the op have the same obligations..the tenant to pay her rent...and the op to pay her mortgage...when the op stops...the tenant should be able to stop...as she is the one being kicked out by the sheriff...if the tenant continues paying.all she is doing is helping the landlord, who will probably just pocket the money instead of paying mortgage...and she should do that....again her lawyer is giving her BAD advice..WHY would you continue to pay on a mortgage when you KNOW it is being forclosed on...the foreclosure is going to take roughly the same amount of time, give or take a couple of months...so why not give the renter a break...

sorry op..my girlfriend says i have this annoying ability to push the WRONG buttons on people...

Uh, the OP IS paying the mortgage. And most of the 2nd mortgage with the rent that is being collected.

Her lawyer probably knows more about the law than you do. How about working on that ability you have of jumping to all of the wrong conclusions (which is usually what really pushes the wrong buttons)?

[junker]

i SAID,when the op STOPS paying the mortgage....what part of that dont YOU understand....and if you believe all lawyers are right...then YOU are living in some cloud.....

[helpmeout]

i SAID,when the op STOPS paying the mortgage....what part of that dont YOU understand....and if you believe all lawyers are right...then YOU are living in some cloud.....

I would believe them over an anonymous poster on a message board.

You have a very smart girlfriend.

[junker]

she picked me...so obviously she is smart....i keep telling her it was the best decision she ever made...

[Flamingo]

This thread has obviously gotten way off topic and about another poster/situation. It is being closed.