I think you are referring to an assignment of rents. When the loan goes into default, the bank has the right to receive any income the rental property generates (assignment of rents). If there is no rental income paid, then the bank does not come after the tenants. The bank is not in the landlord business and does not want to be.
Quote:On 2008-06-09 12:25, Al22 wrote:
I hesitate to prosecute, only because he would be totally ruined. I think I know the advice I will get from this site, but need a little push, and good advice. Your ex-friend did not hesitate when jeopardizing your name and credit.
The risk you are facing now is that you and your spouse could be named as co-conspirators to mortgage fraud. After all, it is your names on the fraudulent lease.
Be proactive, NOW. Take steps to report the fraud. Report the forgery to the state real estate commission and to the district attorney. Take steps to clear yourselves before you get named in a criminal indictment.
The best thing going for you is that you are not a motivated buyer. Be patient and do not get into a bad deal that will be really hard to get out of. First things first... line up an equity line of credit (ELOC) so you can tap into your equity. With good credit, good equity, and a job you can get good rates. Then maybe start looking close by (Salinas?) for property that can provide better returns. I keep my farming areas within about 20 miles or so. 20 miles is manageable for me and provides enough area to find way more deals than I can close.
Does anyone know any new ways to find investors or credit investors? Like... posting on this website? What specifically are you looking for?
Lots of talk on this in the marketing forum.
Chris
I think you are referring to an assignment of rents. When the loan goes into default, the bank has the right to receive any income the rental property generates (assignment of rents). If there is no rental income paid, then the bank does not come after the tenants. The bank is not in the landlord business and does not want to be.
Quote:On 2008-06-09 12:25, Al22 wrote:
I hesitate to prosecute, only because he would be totally ruined. I think I know the advice I will get from this site, but need a little push, and good advice. Your ex-friend did not hesitate when jeopardizing your name and credit.
The risk you are facing now is that you and your spouse could be named as co-conspirators to mortgage fraud. After all, it is your names on the fraudulent lease.
Be proactive, NOW. Take steps to report the fraud. Report the forgery to the state real estate commission and to the district attorney. Take steps to clear yourselves before you get named in a criminal indictment.
The best thing going for you is that you are not a motivated buyer. Be patient and do not get into a bad deal that will be really hard to get out of. First things first... line up an equity line of credit (ELOC) so you can tap into your equity. With good credit, good equity, and a job you can get good rates. Then maybe start looking close by (Salinas?) for property that can provide better returns. I keep my farming areas within about 20 miles or so. 20 miles is manageable for me and provides enough area to find way more deals than I can close.