CFK's , Water Bills, and Water Deposits.....UGH

[Lloyd Feinberg]

Has anyone been having issues with Water Deposits, I wanted to share a tip and see if anyone is handling these like I am. I have made my CFK Checks contingent upon the Occupants producing a Paid Water Bill with a zero balance dated the day of or the day before the scheduled CFK. I advise them of this contingency on my initial contact and throughout the process, including the day before and day of.

Upon arrival, if they produce a paid receipt with a zero balance, it allows me to go within the next few days after the CFK is completed to the City and open my Account. Because there is a zero balance on the prior account, any deposits go back to the account holder and the account is closed. I now have no Arrears to pay and the prior account holders deposit is the City's problem to get to the Occupant. I open the my Water Account with only my Deposit out of pocket, not my Deposit plus a delinquent bill from the CFK Recipient.  

At the property I try to turn off the main until an inspection, this way I have no usage and only a monthly connection fee, again keeping out of pocked to a min.

Here is the best part, upon Closing, I trot right down to the City, just like I made the CFK people do, and I pay the balance to zero, advise of Closing and fax them a HUD to Close the Account permanently, then, again the best part, the City returns my Deposit 100% in tack for the full amount, eliminating trying to find your deposit that was partially applied to balances, then trying to reconcile that so you can submit for partial reimbursement, which was driving me to pull my hair out and trust me there is not much left to pull out. 

On vacant properties with arrears, of course you have to pay and submit for reimbursement, but by paying the account that you open down to zero at Closing, sending the City the HUD, does the same thing, gets your deposit back 100% in tact. 

Anyone else have any good tips to share? 

Regards

Lloyd Feinberg

[Rachel Chu]

Tank you. Great tip about the lien. In my county, the final bill is always deducted from the deposit so it won't work here.

[Ronald D Bourgeois]

No better way to learn than Field Experience.  Thanks, for the tips.

-ron

[Patti Baker]

`Good idea, however, this is the reason I do not do REO's too much work for too little money