L/O vs. Promissory (Alabama folks) - Posted by Carlton Riley Smith

Posted by Steve-WA on May 10, 2007 at 16:35:57:

and you realizing it yourself pushes you closer to success!

This is what we educators call a “teachable moment”

L/O vs. Promissory (Alabama folks) - Posted by Carlton Riley Smith

Posted by Carlton Riley Smith on May 09, 2007 at 10:45:47:

I had this question based on Tony’s response below to the thread, Tenants - Rich(WI). Here is what Tony said:


… unless the state makes it difficult by statute to regain possession of the home if a buyer defaults. In some states it is much faster, easier and less expensive to evict a tenant than it is to repossess.

I live in Alabama. I am buying my first wobbly box this weekend (it was a lady I negotiated a rate with awhile back, she walked away, I stuck to my guns, and now she’s back - thanks everyone!), anyway, this post got me thinking. I have no idea what my own state of ALABAMA is like with respect to what Tony addresses. If anyone could weigh in, I’d appreciate it.

Thanks

Re: L/O vs. Promissory (Alabama folks) - Posted by Jason (AL)

Posted by Jason (AL) on May 10, 2007 at 20:54:46:

Hey Carlton,

The foreclosure process, here, takes about a couple of months.
Not sure if you know or not, but we’re a judicial state.

Also, there is a 12 month right of redemption (meaning the borrower has 12 months to redeem the amount owed and get title to the property back after the sale).
However, the borrower CAN reinstate their loan within 5 days of a sale.

As far as eviction is concerned…

You only need give a 10 days notice to a tenant.

And, YES, it is illegal in the state of Alabama to “lock out” a tenant from the property.
…even though this would be fun. :wink:

Put on some coffee and read up on this:

http://www.apartmentsusa.com/alabama/al-rent-tips-eviction.htm

Maybe it will give you what you’re looking for.

I have more, state-specific statutes if anyone is in’ersted.

open sesame? - Posted by Carlton Riley Smith

Posted by Carlton Riley Smith on May 10, 2007 at 08:34:24:

My last few threads have gotten no reply - is there something I’m missing here, a secret password? Are the questions so out of left field? Just wondering.

Any help appreciated.

Re: L/O vs. Promissory (Alabama folks) - Posted by Ellen Brenn

Posted by Ellen Brenn on May 13, 2007 at 21:10:52:

Alabama landlord/tenant law changed in January, this year. There is now only a 7 day notice period, and it is 7 calendar days.

We own a park and we only do lease and options. There is a section of this law that says companies must have a lawyer file evictions. It is enforced differently depending on the county you live in. Our county (Pike) started enforcing this in January, effectively changing an eviction from a 203 charge to a 703 charge - the attorney gets a $500 fee just for filing. We have not had to actually appear in court yet, but that charge will only grow at that point.

Check over those new laws!

Ellen Brenn

Re: L/O vs. Promissory (Alabama folks) - Posted by Carlton R. Smith

Posted by Carlton R. Smith on May 11, 2007 at 13:13:40:

Jason,
Thanks for replying and posting the links. So based on what you posted above, which strategy do you pursue more of: lease-option, promissory, or renting?

Which one of these can you evict under?

I’m in Birmingham, btw.

Re: L/O vs. Promissory (Alabama folks) - Posted by land-o

Posted by land-o on May 11, 2007 at 08:58:16:

Not meaning to sidetract, but is it illegal to “lockout” if there is a
separate signed fully disclosed “exhibit A” made so the prospective
tenant can come in with a smaller down payment?

I am under the impression that any act may be contracted, including
the action of changing locks, so long as there is consent, am I wrong in
this?

Re: open sesame? - Posted by Tony Colella

Posted by Tony Colella on May 10, 2007 at 09:04:12:

Sorry Carlton but I don’t know the Alabama laws and hoped someone here might. I have also learned that there is no better info that learning how your local court (where the home is located) handles these issues.

I have seen quite a variance even from one county to the next in how they handle repo of trailers. If you can spend a couple hours one day, the best education you can get will be free. Take a trip to that court house, start with information and be patient (this is so uncommon that you will have to dig to get true answers… most attorney’s will not know).

Take a bit of time to sit in on a few small claim cases. Know where you will need to stand, what paperwork to bring and find out what paper work you will need to file (cost, time frames etc.).

This will eliminate all fears and allow you to control the landlord/tenant situation or buyer/lienholder situation. So many investors fail to act because they don’t want to go to court and end up getting taken advanatage of. Usually they find out that this all could have been handled quickly and easily by the courts or by simply knowing more about the court than the tenant/buyer.

Tony

Re: L/O vs. Promissory (Alabama folks) - Posted by Jason (AL)

Posted by Jason (AL) on May 11, 2007 at 09:34:24:

Not really sure, as I’ve yet to encounter that problem.

Not only would I NOT do such a thing because of the legalities, but I wouldn’t want to anger someone to the point of them using other means of getting access their stuff.

Here are state-specific statutes, regarding property:

investors and wannabees take heed! - Posted by Steve-WA

Posted by Steve-WA on May 10, 2007 at 16:39:20:

I will attest to Tony’s advice - you can DEFINITELY shortcut uneasiness and embarassment by the judge by just sitting in on small claims proceedings and eviction proceedings to learn the process. I’ve done it lately, and I am now processing my own evictions, where before I would pay a lawyer ~ $900. Costs me a little time, and $157.

Besides, you get to hear some REALLY wild stories!! It’s kinda fun!

Thanks Tony - Posted by Carlton Riley Smith

Posted by Carlton Riley Smith on May 10, 2007 at 16:05:08:

That is great advice. I’m thinking I can run down to the courthouse one day next week, take a long lunch, and sit in on a couple of cases. If I’m not mistaken, what I like about most of your advice is that you advocate that there is no substitute for learning the business yourself, never taking someone else’s word for it. Some of us ‘noobs’ might try and use the board for every question that pops into our head. I’m certainly guilty of it.

Thanks for replying.