Landlord – Tenant:
1. What is the eviction process?
First, proper notice must be served on the tenant. If the tenant fails to come current on the rent or cure some other breach of the lease, a formal eviction complaint is filed with the court. The complaint is served on the tenant by the sheriff. If the case cannot be settled out of court, there is a trial.
2. How does a landlord serve notice to a tenant?
If the tenant has not paid rent, a five day notice must be placed on the tenant’s door. For other forms of breach of the lease, a ten day notice must be attached to the door.
3. If a tenant breaks the lease and moves out, is the landlord entitled to the rent for the remainder of the lease term?
Yes, but the landlord has a duty to mitigate his/her damages if the parties cannot agree on how much of the remaining rent will be paid.
4. What is a “duty to mitigate?”
This means that a landlord must attempt to reduce the damages by trying to find a new tenant or accepting a suitable person to take over the remainder of the lease.
1. How long does it take for a short sale property to close?
The time period varies for a number of reasons. However, an experienced firm such as Angelina & Herrick, P.C. can successfully negotiate and close on a short sale within sixty to ninety days.
2. What happens to the owner regarding the amount of the shortage to the bank?
Sometimes the deficiency, the difference between what the bank is owed and the amount they settle for and accept, is waived by the bank during negotiations. However, in some cases the bank may require that the owner pay towards the deficiency. Or, the bank may forgive the deficiency, and issue a 1099 for income tax purposes. Under current tax law, the 1099 statement and corresponding income tax only applies to investment properties, but the law is subject to change.
In order to sell a property as a short sale, the owner of the property must have a hardship. Examples of hardships include having to relocate because of a job, loss of a job and having monthly expenses greater than monthly income. The owner cannot have significant liquid assets. An owner cannot ask the bank to take a $50,000 loss when he/she has $100,000 in the bank. If you have a hardship and limited liquid assets, you will likely be a candidate to sell your property as a short sale.
Pleas contact us directly with any questions that you may have at 847.873.0590 or email us at firstname.lastname@example.org