When I last wrote about the Louisiana commercial property I'm invested in, the buyout of "Joe's" interest in the property had fallen through and he was once again late on his payments. We (the other mortgage investors and myself) had decided to start the foreclosure process as soon as possible.
I received word yesterday that the process has begun. On September 15, Joe was officially late for the September payment and late fees started accruing. A 10 day courtesy letter was sent to Joe in September via certified mail telling him he was late and had 10 days to become current.
Later in September, a 10 day demand letter was sent, letting him know we will foreclose unless he makes his payments. That ten day period just ran out and yesterday our attorney filed the foreclosure paperwork. We can now legally pay the building management company, whom Joe has also not paid, and include that in the amount Joe owes us. Same thing goes for the utility companies, who have also not been paid and are threatening to shut off the power.
Our mortgage specifies a 45 day foreclosure period, so if all goes smoothly, we will own the property in a month and a half. It will not go smoothly. Joe will try to fight this with more delaying tactics, possibly including filing for bankruptcy. Whatever he does, financial control of the property is no longer his, so we can take steps to get everyone paid up and happy again.