Re-affirmation question and property manager situation

[Birn]

I filed Ch. 7 and was discharged in June. I had 7 rental properties that I had stated I wanted to re-affirm. The lenders never responded so we didn't ever sign any re-affirmation agreements.

These properties are now in foreclosure because of my property manager. He never turned over the rents for the 4 months I was in bankruptcy. He's also refusing to turn over the rents that he continues to collect after my discharge.

Since I never signed re-affirmation agreements with the lenders, those debts are still considered discharged, correct? I'm concerned that since I indicated in my statement of intentions that I wanted to re-affirm the mortgages that I'm still personally liable for those debts.

Also, does anyone have any suggestions on how to get my property manager to turn over my rents. He's collected over $30,000 in rents since I filed bankruptcy. He's refusing to turn them over because he says that I owe him money for major repairs/rehab expenses on my 7 homes. He has never told me about any of these expenses. I never received any bills, statements, invoices, etc. about repairs on my homes. This property manager was also listed as a creditor in my BK. My thoughts are that any debts he thinks I owe him were discharged. Is he in violation for using the rent money to pay for these supposed debts he claims I owe him?

He thinks he can take advantage of me and enjoy my rental income for himself. I'm so angry at him right now and want to report him to the police!!! He has no right to keep that money. The rental income is enough for me to pay my mortgages and have about $600 in positive cash flow each month. That's why I wanted to keep these homes. I have great tenants who pay on time every month but they pay their rent to my manager. If I tell my tenants to pay me directly, the property manager will scare them into to thinking I'll let these homes go into foreclosure. The fact is these homes will definitely go into foreclosure if he continues to steal these rents.

I now have to get another attorney to help me get these rents collected and fire this property manager.

Is there any BK law that can force this property manager to turn over the rents to me?

[deafbroke]

Buy some "Soap-on-a-rope" and send it too your property manager with a letter telling him that if he does not turn over the money he will need the soap on as rope when your attorney gets done with him in court.


DB

[lrprn]

Since I never signed re-affirmation agreements with the lenders, those debts are still considered discharged, correct? I'm concerned that since I indicated in my statement of intentions that I wanted to re-affirm the mortgages that I'm still personally liable for those debts.

If the reaffirmation agreements were not signed by your lenders and were not filed with the court, then you are not personally liable for whatever remains on the mortgages if you decide to walk away and no longer make the mortgage payments.

Also, does anyone have any suggestions on how to get my property manager to turn over my rents. ... My thoughts are that any debts he thinks I owe him were discharged. Is he in violation for using the rent money to pay for these supposed debts he claims I owe him?

If you are still the property owner, then your manager still is required to turn the rents over to you per your signed contract with him (you do have a signed contract, right?)

I am so angry at him right now and want to report him to the police!!! He has no right to keep that money.

Exactly what you should do. Why haven't you reported this theft?

I now have to get another attorney to help me get these rents collected and fire this property manager.

Yes, probably true. Sometimes life just isn't fair. Don't waste any more of your precious energy lamenting over what you can't change. As difficult as it is, you need to get on with doing what needs to be done to protect yourself and get your money back if you can.

Is there any BK law that can force this property manager to turn over the rents to me?

No. But there is contract law - he is violating the contract he signed as your property manager to turn the rents over to you in a timely fashion (you do have a signed contract with him, right?) Go meet with an experienced real estate lawyer to find out what your legal rights are in this situation. Time's a-wasting!

[AngelinaCatHub]

The above posters are correct. I would go farther and if he is also living on your property, call a police officer, make a report, have a letter of intent to sue him drafted by a good lawyer as he is truly stealing from you and if you had intended to do a pass through (I think that’s right, continue to pay on the mortgages) it is your money he is stealing. You might even go to the State Attorney to see if this is a criminal action. You might not get legal aid there but they can give you a thumb nail idea. If it is criminal, that in itself will scare this person. What state are you in? Go to your Statutes and do a search. Also, you LEGALLY own this property. Write him a dismiss from job letter. FIRE HIM! This is fraud like for sure. ‘Hub

[Birn]

Thanks for all the replies. Yes, we do have a contract. I forgot to mention that I'm in Texas. He called me yesterday after I threatened to call the police, attorney general, FBI, etc. He now says he has a "solution" that would be a "win-win" for us. For me, this is very easy....just give me all of my rent money and get the hell out of my life! You're fired!!!!

[ThreadsSnapping]

So what was his proposed "solution?"

TS

[Birn]

Property manager "solution"

My property manager emailed and texted me earlier to let me know that his wife just got admitted to the hospital (great timing!! I think its a bunch of BS!). Anyway, he promised to be in touch with me tomorrow. I didn't even respond. If he doesn't turn over my rents immediately, I'm taking action. The worse part about this whole thing is this guy has a thriving business and has plenty of money. There's no reason for him to steal from me.

I also researched further and discovered that he's not even licensed to sell or lease real estate in Texas.

I'll let you know what he tells me tomorrow.

Thanks for everyone's support.

[sisterfunkhaus]

File charges against him for embezzlement or theft. It is illegal to steal money from others.