Some of my business is managing for others. I took on a house not too long ago for an out of state guy. Friend of the ex. As soon as the ex and I split, I figured this owner would go to. He did. I haven't managed for him for months now, but can't get him to pay off his account. He got it down to a small amount, then just quit paying and responding. With Dec statement, I let him know I would be placing a lien on his property since account was not paid off. The house is currently for sale, but is a stale listing. I can add the cost of filing the lien to the balance (which wouldn't be much anyway because the cost is based upon the size of the lien you place). He responded, shocker. Said if I take this route, he will take it to court because I charged for work not performed "and he has pictures". No problems/concerns about prices and work performed has ever been raised until now (another shocker).

So, I'm in KS and this guy is on the coast. I can't imagine it would be worth his time to travel back to KS or hire a lawyer to represent him. Even if he does, I have any documentation I would need to counter any claim he has. Not sure any of it would be needed since my fees aren't exactly based upon anything other than my agreed fees. At any rate, I don't see it being much of an issues except for court time and possibly an attorney for me. I think I could counter sue for attorney cost, but not sure.

So my question is this: What would you do? Like I said, it's a small amount. That alone may say don't bother. The thing is, this jack wagon has been a real pain since I took management. It got to the point that I was going to tell him to find someone else, I was done. He decided to sell, so I held on for the extra 2 months to get it on the market and now I'm done. I preach to others on here to take emotion out of it, this is business. So in doing that, the only reason I'm considering it is to learn. I've never been through this process and a cheap one like this might be a decent learning opportunity in case another one comes along in the future that is a sizable amount. Have any of you been through this? Is it worth it? Since the house is for sale, it would definitely screw up the sale unless he paid (assuming he gets an acceptable offer, which I'm doubting at current asking price). Is this cost not worth the education it would provide? Any other "gotcha's" I should consider?

Don't take no guff off this swine! He is either stupid or bluffing.

I think you're right in your assessment of him.

Go ahead and do it. Keep meticulous records as many cases which are lost are because of poor records. It's a learning experience.

You might even be able to use the court to force a sale at a realistic price. Add every cent you are legally allowed to add. Charge the legal maximum interest.

Also, if the sale price of the house becomes low enough, you might even buy it or flip it.

Doogie,

In MY state we simply fill out a form and if the other party does not pay or legally contest it within 30 days, you have a lien on the property.

After XX days I can file for foreclosure on the property to force payment of the lien. That goes on his credit report and will mess up the current sale of the property.

Atty fees happen with the foreclosure filing but are added.

If the lien has been filed but the 30 days has not passed before the house closes, the lien still goes on the house but hits the new owner.

But before messing with all that, Wanna be Right or Rich. I consider MY time and the added hassles.

BRAD

Brad - Pretty sure that's how it works here too. Simple form to fill out.

bottom line. we need to know how much is "little".

Your asking for cause and effect analisis and turthfuly without outlay amount who could give correct advise.

bottom line. we need to know how much is "little".

Your asking for cause and effect analisis and turthfuly without outlay amount who could give correct advise.

When we bought a management company there were several owners that we paid property taxes for as well as insurance & mortgages.

Had 1 owner stick me for over almost $2K because he wanted the house back during a term lease so his daughter could live in it. It's a term lease......you can't just terminate it. He didn't care; he wanted it done, snuck into town & had a conversation with the tenants, worked a deal with them, unbeknownst to me. So gave the tenants 60 days notice to terminate a term lease & they didn't pay the last 2 months rent, left the house a mess, etc. Left me hanging with 2 months mortgage with this individual that he wouldn't pay because I didn't collect the rent to reimburse for the mortgage. Sued him, we won but still he wouldn't pay the judgment. And 10+ years later still hasn't paid the judgment.

Sometimes it's just better to walk away. Sometimes people just want other people to do their dirty work & then stick them for it. At that time, every one of my 75+ owners got letters that we would no longer pay mortgages, taxes or insurance on properties. Then that handful of people were angry. At some point in this business it becomes us vs. them. And unfortunately at that point it becomes get them before they can get you. No matter how above board or transparent you run your business.

Julie - Thanks for your story. I think this is the approach I've decided to take. I don't think it'll sell honestly. It's been on the market for close to 3 months now. It sat empty for a couple months before that. So, he's out about 5 months rent at this point. Of course, he knows everything and won't listen to anyone. So, that 5 months is someone else's fault.

Once they're gone, they stay gone. Words to live by........:)

I'm in the camp to file the lien.

I've only had to do one in this lifetime....it was worth it.

I was contracted to repair about $2500 in work on a home that the owner wanted to sell. (Had been a rental and was vacant). I completed the work, gave him my bill. He couldn't pay, and back then I really needed the money.

I placed a lien on the property and moved on.

About a year later I get a call from the guy. He's sold the house and is at the closing, but can close because of the lien. He wanted me to sign a document forgiving the lien. I told him I would be glad to forgive as soon as I received my $2500 plus interest. I went to the title co. signed their document and picked up my check.

Doogie,

If filing the lien is simple are free I'd file then sit on it. If he sells the house you'll get paid.

If you get tired of waiting have your atty write a bulldog letter and add his fee. He gets paid if he collects.

When someone threatens to sue you NEVER BLINK. Call their bluff and NEVER EVER BLINK.

How do you take pictures of work NOT done? Maybe the shots were taken Before the work was done.

He's bluffing. Stick to your guns.