Usury Law - Orlando, FL
I bought a foreclosure in December, 2003. I allowed the former owners to retain residency, renting it back from me. I have a written lease. Their track record for rent payments is poor. I need to evict them but I need information on usury law.
Can anyone guide me?
hi
i dont understand the question??
what does the usury law have to do with how to evict a tenant.
usury is just interest that cant exceed the legal rate.
so if the highest rate you can legaly charge in florida is 10% you can not go higher than that.
thats my understanding
amynewbie
If you are wanting to evict, you will want to review the landlord-tenat statutes of FL. The folks at Orange Co. Court house are very helpful, and will walk you through the process and forms you need to complete. You may also consult an attorney.
Here's a couple of links that will help you re: landlord-tenant issues in FL:
http://www.megalaw.com/fl/top/fllandlord.php
and
http://www.800helpfla.com/landlord_text.html
I guess my question was about the eviction. I was told that because they used to own the house and haven't moved out, they have rights that a regular tenant would not. I've evicted with other properties I own, but this situation is unique.
Do these special circumstances give these tenants any additional rights?
You might have a usury problem if you promised (or gave an option) them you would sell it back to them at a profit to you. The concern is that an attorney might argue that this is a usurious loan rather than a purchase and option-back and you would be subject to usury laws. Since you did not do this you have no usury problems.
I have an almost identical situation on a lease-back to the former owner. I won the suit, got a judgement and have an order to evict. The previous ownership was not an issue in my case.
The only issue that I see is if there is redemption provisions on the foreclosure. If the owner currently has rights of redemption to buy the house back then you might need to relinquish the house if they exercise their right to redeem. This will depend on the state. In many states its all over once the foreclosure sale takes place.
Even if they have the right to redeem, I doubt that this would impede the eviction process since you are evicting because they have failed to perform on the lease.
Regards,
Ed
Thank you, I only have a written lease, not a lease option. I am a bit nervous being I am a mortgage broker and I do not want to jeopardize my license. As far as redemption, I bought it before the auction sale, thus eliminating a redemption period. I will seek legal advice before starting the eviction process, but your message puts me at ease.
My purchase was also before auction. As I am sure you are finding out, the financial strength and the habits of the seller do not change the day you acquire the property!
I hope you make much money on this one as I am sure that you are paying for it with headaches.
Regards,
Ed
Living and Learning!!
Thanks
gmoney69:
There is no statutory right of redemption in Florida. All you have is a 10 day protest period wherein the debtor could protest any procedural irregularities regarding the sale itself. In this case, there was no sale so this is not an issue.
If the tenant is in default, your obligations as a landlord depend on the type of default. In Florida there are essentially two types: 1) non-payment and 2) other (such as breach of a provision in the lease). If its for nonpayment, you are required to post a 3 day notice of eviction; if its for other than nonpayment you must post a 7 day notice to cure. Both of these documents precede your ability to file for eviction. You can obtain copies of them from your local circuit court or law school library.
Many times the tenants will leave voluntarily once you post this notice. If not you will need to file suit, familiarize yourself with Florida's landlord tenant act (Chapter 83, Florida Statutes) before you file or better yet hire an attorney that handles these kinds of cases.
Hope this helps.
J
Concerninig evictions, BEEN THERE, DONE THAT! I appreciate the input and I believe that July will be a month of independence for me and my tenants, if you know what I mean.
Happy 4th of July, celebrate our freedom of property ownership and remember that we all live in the greatest country in the world!