Betty has multiple state (MN, to answer taxguykarl's question) and federal tax liens on her credit report. We have received many liens and garnishments, and we send as much money as Betty has in her checking account, which is usually only a couple hundred dollars. I don't know how much this has affected the employee turnover rate at Betty's, but I can't imagine it helped.
The 90-day extension is on the house loan, which is not in danger of being tax forfeit for real estate taxes. The restaurant loan is separate, and doesn't mature for nearly a year. The restaurant property will go tax forfeit before the loan matures. To prevent a loss for the bank, we sent a pre-foreclosure letter that will expire in January. Betty has until then to pay the real estate taxes, or we'll start foreclosure proceedings. The county will start the tax forfeiture process in May if all the back real estate taxes aren't paid.
I think I mentioned in the previous threads about Betty that we have, in the past, advanced funds on the restaurant loan to pay federal and state taxes and real estate taxes. We did that to prevent having her from losing her business, but it has instead given her the expectation that we will pull her out of the next jam she gets herself into. When the new bank took over (about 4 years ago, now), they put a stop to that practice.
I haven't been to Betty's in over a year, but from what I hear, she has good food and brisk business. I think her issues lie more in money management than restaurant management.
The husband still hasn't come in to sign the extension documents for the house loan. I still intend to tell him about the restaurant going tax forfeit next year. Both because it's public record and because real estate is automatically owned jointly by spouses in MN. He is equally as responsible for the restaurant property as she is. I suspect she doesn't want me to tell him because she wants to avoid the argument it will cause.
The 90-day extension is on the house loan, which is not in danger of being tax forfeit for real estate taxes. The restaurant loan is separate, and doesn't mature for nearly a year. The restaurant property will go tax forfeit before the loan matures. To prevent a loss for the bank, we sent a pre-foreclosure letter that will expire in January. Betty has until then to pay the real estate taxes, or we'll start foreclosure proceedings. The county will start the tax forfeiture process in May if all the back real estate taxes aren't paid.
I think I mentioned in the previous threads about Betty that we have, in the past, advanced funds on the restaurant loan to pay federal and state taxes and real estate taxes. We did that to prevent having her from losing her business, but it has instead given her the expectation that we will pull her out of the next jam she gets herself into. When the new bank took over (about 4 years ago, now), they put a stop to that practice.
I haven't been to Betty's in over a year, but from what I hear, she has good food and brisk business. I think her issues lie more in money management than restaurant management.
The husband still hasn't come in to sign the extension documents for the house loan. I still intend to tell him about the restaurant going tax forfeit next year. Both because it's public record and because real estate is automatically owned jointly by spouses in MN. He is equally as responsible for the restaurant property as she is. I suspect she doesn't want me to tell him because she wants to avoid the argument it will cause.
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