Drunk Bob...

Jimmy cooper said:
The president has gotten a real lesson how powerful insurance company's are and is still being taught. I doubt if he'd sign that. They are among the most powerful in the country and have recently proven it.
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If you like your homeowners insurance.............. You can KEEP your homeowners insurance....... PERIOD.............;).........:D
 
bartmc said:
Yes. Insurance companies have contractors they work with do do this very thing, but since it's an auto policy, they probably don't.



Pitch it to them to fix it and not pay you anything.
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And the fix-it job will be cosmetic only. Kind of like getting a "fresh annual" from the seller. Except in this case the insurance company's "guy" doesn't have to sign a log book, and shockingly will be unable to be found when the weight bearing wall collapses.
 
nddons said:
And the fix-it job will be cosmetic only. Kind of like getting a "fresh annual" from the seller. Except in this case the insurance company's "guy" doesn't have to sign a log book, and shockingly will be unable to be found when the weight bearing wall collapses.
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Great post, and it makes a good point too..

Consider a house is not like a car/truck /plane and if the damage reaches a certain point the insurance company just totals it, cuts you a check for a measly amount and they are off the hook....

In this case, even though AP said the house was worth 25,000. The damage, if severe enough can exceed the value of that house...

That is the reason the Insurance company tried to get them to sign a "release" form..... They are REQUIRED to return the structure to the exact condition it was in just prior to the wreck....

AP............ Stick to your guns and hold them accountable.. IMHO..
 
AuntPeggy said:
Right. Insurance company cancelled and we couldn't find another insurer. Possibly could if we were resident homeowners, but since it was a rental, no luck getting insurance.
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I was shocked to run into this also.
I recently bought a foreclosed house. It was cheap and of course needs repair.
When I looked into insurance I found that they did not want to insure it:mad:
My agent was able to find another company that would cover it but they had to take a bunch of pictures of all the damage. I then have to prove it is fixed before any claim.
This way I can not claim the next wind storm damaged my soffits. (or what ever)
 
JOhnH said:
That was my first reaction. I had a quote yesterday to put organizing shelves in a 12 ft reach-in closet that was almost $2,300.
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Well, in fairness, labor rates are a lot lower in depressed areas. A lot of the expense people pay for contractors in nice areas is supply and demand as well as just plain ol' inflated prices because that is what the market will bear. Find a guy sitting on his ass in this town willing to work for $20 an hour and ...?
 
Donate it to the renter , take the check and the write-off?

A house like that could be a nightmare to even sell.
 
AuntPeggy said:
By the way, the insurance company figures that it will take $2560 to repair, then they take a depreciation of $250.
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This is likely to be true if you were making a first party claim, meaning that you were making a claim against your own insurance carrier, and you did not have RCV (replacement cost value coverage). In this case, the driver's carrier would be paying you for the measure of damages that you could recover under the applicable tort law in your state. I suspect that it is some variation of the concept that you can recover the diminution in value of the property, which typically for property that is repairable, the actual costs of repairs. If you can afford it, get it fixed, and then tell the carrier that is what you spent, and that is what you will take, period. At that point, they are looking at the costs of litigation, and trying to justify their estimate when you have actually put your money where your mouth is and spent your own cash.

Further, to really twist the knife, see my next post.
 
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AuntPeggy said:
I don't want you to think I'm a slum landlord, but ...

850 square feet, 3 bedrooms, wood frame, single-car garage, built in 1950s, 1/4 acre. Tenants are mom, dad, 5 children. Run-down neighborhood. The town doesn't have any good employers any more and has been slowly dying.

The absolute maximum I could sell the house for is $25000. It has been uninsurable for the past 5 years, so I don't have an insurance company.

My thinking goes this way:

Assuming the repairs actually cost $5,000
Assuming I sue the insurance company and drunk bob for $5000.
Courts expect me to settle for less than the amount sued for, usually 50%.
Assuming I hold out for $3200 and get it.
Lawyer takes 30% ($960).
I end up with $2240 and an interesting story to tell.

Tell me where this reasoning goes wrong.
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You forgot the part where the driver was drunk, and therefore subject to liability for punitive damages. When you make your demand, make sure they understand that if they don't settle for the actual costs that you actually paid, that you will be seeking punitive damages in your lawsuit. They don't have to pay the punitive damages (I presume that true in your state, but I could be wrong), but they most certainly open themselves up to a negligent adjusting claim for failing to settle a claim of clear liability against their insured that they could get done within their applicable policy limits. Then, when it comes time for collection on your excess judgment, you may (depending on your state's law) take an assignment of his claim and litigate directly against the insurance company standing in the shoes of Drunk Bob.
 
O-200 said:
Donate it to the renter , take the check and the write-off?

A house like that could be a nightmare to even sell.
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Or seller finance the home to the renter at the same payment rate as their rent. Then you get out from the upkeep and liability, but checks keep coming in.
 
Follow the advice others have provided on fixing it, and then sell it.
 
Yes. Just hate throwing out tenants who have been there 9 years. Can't even build a new hangar for what I could sell the house for, but getting too old for the risk.
 
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AuntPeggy said:
Yes. Just hate throwing out tenants who have been there 9 years. Can't even build a new hangar for what I could sell the house for, but getting too old for the risk.
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That's why you do Brad's idea above. You "sell" the house to the renters with zero money down and structure the loan payments with interest to be exactly what they are paying now. This way you get paid for the house, they don't have to leave and the risk and liability for the property go on them as soon as they sign the paper to their new house. Seems like a win/win.
 
Now I'm trying to figure out if there is a way to sell it to the tenants and be totally free of it. If they default, I'll then have to figure out how to foreclose, and then if successful, I've got the house back again.
 
Just sell it to them. There is almost certainly a way to do so. I would try to avoid using yourself as the lender, but would do it if necessary. The other issue is they will need to pay less per month, since you're now putting the liability and upkeep on them.
 
Ted DuPuis said:
Just sell it to them. There is almost certainly a way to do so. I would try to avoid using yourself as the lender, but would do it if necessary. The other issue is they will need to pay less per month, since you're now putting the liability and upkeep on them.
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Respectfully...

I would do it differently...

Owner financing with a "lease to purchase" agreement. AP holds the title and the tenants hold the liability.... If they default, AP gets the property back to resell...
 
Whatever you choose, best of luck AP. It sucks being thrust into a situation for which you had no control.
 
N801BH said:
Respectfully...

I would do it differently...

Owner financing with a "lease to purchase" agreement. AP holds the title and the tenants hold the liability.... If they default, AP gets the property back to resell...
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This. I would add that if they default she gets possession of the property back. Title stays with her until the final payment. That way, no need to foreclose. Just evict.

As always, the laws in your state may vary.
 
Ted DuPuis said:
Just sell it to them. There is almost certainly a way to do so. I would try to avoid using yourself as the lender, but would do it if necessary. The other issue is they will need to pay less per month, since you're now putting the liability and upkeep on them.
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She said they have been renters for 9 years. I'm assuming they always paid their rent. I think they are reliable and of a lower risk. Just make the payments the same as the rent has been. As actual residents, I'm assuming they would qualify for insurance and you could require this as part of the deal.
 
My point isn't that I don't trust them, it's that I'd want to just wipe my hands of it and move on. It sounds like that's what Peggy wants, too.

Lots of options for how to sell it.
 
AuntPeggy said:
Now I'm trying to figure out if there is a way to sell it to the tenants and be totally free of it. If they default, I'll then have to figure out how to foreclose, and then if successful, I've got the house back again.
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Well, if they default, what would require you to foreclose?

and, it seems like a pretty low risk of default, right?

(and I'm NOT drunk Bob - never have been drunk)
 
Lease purchase with a 2 year buyout, if they can't qualify for a mortgage on their own right now, but assuming they have been paying on time and have decent income, they should qualify. :D If you want to finance the house, it should be pretty simple to get a local real estate attorney to draw up the paperwork and make them proud owners. :D
 
I was an absentee landlord for a time, and says me by all means rid yourself of the property once it's repaired. I was within driving distance (albeit a long drive) so I could oversee the property. You aren't in such a good situation. Moreover, $25K just isn't worth the hassle and potential liability. I'd sell the thing for a buck just to be rid of it.
 
steingar said:
I was an absentee landlord for a time, and says me by all means rid yourself of the property once it's repaired. I was within driving distance (albeit a long drive) so I could oversee the property. You aren't in such a good situation. Moreover, $25K just isn't worth the hassle and potential liability. I'd sell the thing for a buck just to be rid of it.
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I'd be tempted to do that, too. Just not worth the hassle.

Quit claim it to the tenants, and walk away.
 
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