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DELAY TACTICS OF TENANTS - UPDATE - OCT. 2013

The most prevalent delay tactic at the moment is that tenants will file bankruptcy the day before trial and force its continuation.  First they will file a Chapter 7.  You then wait two weeks for the Trustee in Bankruptcy to throw it out due to lack of Schedules, or one of the mandated disclosure documents.  If you're lucky, you continued the trial date for a month, because then the next antic they pull is to file a Chapter 13.  Then it's another 2-week wait.  The Trustee will automatically kick it out if the necessary documents are not provided, but they've already bought themselves a month in delay.

Another tactic used in properties after foreclosure, is that the prior owners of the home will find a "straw man."  They will find someone else who is in foreclosure and they will pretend and create fraudulent transfer deeds and create a 20% interest in the property.  Then they file bankruptcy in the name of the fraudulent straw man.  We have seen at least two of these in the last couple of months.  The County Recorder has been informed and has contacted the District Attorney regarding these fraudulent deeds.  

Another tactic is to have someone that doesn't even live in the house file a Prejudgment Claim, and then file an Answer, and then they file bankruptcy just before the trial date.

In these days of financial corruption and schemes, you need to be patient and build the eviction costs into the purchase of your property.  

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