Betty The Restauranteur

[Ghel]

I managed to get hold of Betty this morning. I called the restaurant yesterday and today, and I was told she wasn't working. So I called her house this morning, and she answered the phone. Funny that she didn't return the message I left on her answering machine yesterday. She claimed that the roofing company had settled for $20,000, and she was just waiting for the attorney to take out his portion and send her a check for the rest. Then, she assured me, she will pay her real estate taxes on the restaurant. I won't hold my breath.

I also went over her homeowners insurance. Yesterday, we received a letter stating that the check she'd used to pay her premium had bounced. Since it was her first premium payment, they weren't even giving her a chance to pay again, they were just canceling her insurance. She was under the impression that she just needed to send another check, but I told her that the letter we received said she had to re-apply if she still wanted insurance. So she promised to talk to her insurance agent today.

I asked about her tax returns, too. She said she still needed to get some information to her accountant about her husband's income from 2011. I mentioned to her that we could offer to do a 90-day extension on her home loan (to give the accountant time to finish the taxes, so we can do a longer-term modification), if she has insurance in place, but without insurance, we can't do that and the loan will continue to be past due.

Betty was surprisingly cordial. Maybe she's finally realized she's run out of free passes.

[eltf177]

She claimed that the roofing company had settled for $20,000, and she was just waiting for the attorney to take out his portion and send her a check for the rest. Then, she assured me, she will pay her real estate taxes on the restaurant. I won't hold my breath.

Ghel, are you saying you don't believe Betty? Shame on you!

I also went over her homeowners insurance. Yesterday, we received a letter stating that the check she'd used to pay her premium had bounced. Since it was her first premium payment, they weren't even giving her a chance to pay again, they were just canceling her insurance. She was under the impression that she just needed to send another check, but I told her that the letter we received said she had to re-apply if she still wanted insurance. So she promised to talk to her insurance agent today.

Somehow I don't think the insurance agency is going to want to have Betty's business. Which puts Betty in a real bind...

I asked about her tax returns, too. She said she still needed to get some information to her accountant about her husband's income from 2011.

I am _shocked_ the IRS has held off this long, 2011 is so long ago one has to wonder what they're waiting for!

Maybe Betty's finally got a clue, and is now busy trying to skip town...

[taxguykarl]

I am _shocked_ the IRS has held off this long, 2011 is so long ago one has to wonder what they're waiting for!

Nothing I haven't seen If they have a refund coming, the Treasury Department will gladly milk the interest or even pocket the money if the don't file on time.
As for the insurance, time to start looking around...if any will cover her at all. I understand insurers also check credit.
At long last:
Betty meet Reality--you've been expected.

[Ghel]

As far as the insurance, we did "force place" insurance on Betty's house. It's a product we use that only covers up to the amount of the loan if the property sustains damage. Thus, there's no liability insurance (for example, if somebody falls through Betty's front steps) and it would only pay off the loan - the customer gets nothing if there's a claim.

Even though we have force placed insurance on the house, we're still requiring them to get insurance before we renew their mortgage. Because that should be Betty and her husband's responsibility.

[TimmyHate]

As far as the insurance, we did "force place" insurance on Betty's house. It's a product we use that only covers up to the amount of the loan if the property sustains damage. Thus, there's no liability insurance (for example, if somebody falls through Betty's front steps) and it would only pay off the loan - the customer gets nothing if there's a claim.

Even though we have force placed insurance on the house, we're still requiring them to get insurance before we renew their mortgage. Because that should be Betty and her husband's responsibility.

Ah good old Force Place (or what we call, Bank Risk).

[Jetfire]

Even though we have force placed insurance on the house, we're still requiring them to get insurance before we renew their mortgage. Because that should be Betty and her husband's responsibility.

At this point, from everything that's been said, I'm positive that that word is not in her dictionary.

[eltf177]

At this point, from everything that's been said, I'm positive that that word is not in her dictionary.

Agreed, but the term "avoiding responsibility" seems to be...

[eltf177]

Any update?

[Ghel]

Not much of an update. Betty hasn't been returning my calls. I doubt she ever contacted her insurance agent, since we haven't received proof of insurance for the house. I don't know if she ever received the check she was supposed to get in her lawsuit, but she hasn't paid the real estate taxes on the restaurant. Because Betty (or her husband) hasn't contacted us, despite numerous phone calls, we sent out a preforeclosure letter this week. If that doesn't get their attention, nothing will.

[eltf177]

Not much of an update. Betty hasn't been returning my calls. I doubt she ever contacted her insurance agent, since we haven't received proof of insurance for the house. I don't know if she ever received the check she was supposed to get in her lawsuit, but she hasn't paid the real estate taxes on the restaurant. Because Betty (or her husband) hasn't contacted us, despite numerous phone calls, we sent out a preforeclosure letter this week. If that doesn't get their attention, nothing will.

Anybody care to bet that Betty will be breaking records trying to contact the bank now?

[Tama]

But not to pay, of course.

[taxguykarl]

we sent out a preforeclosure letter this week. If that doesn't get their attention, nothing will.

Glad to see someone is finally stopping that nonsense.
Expect all kinds of excuses soon

[eltf177]

Glad to see someone is finally stopping that nonsense.
Expect all kinds of excuses soon

Assuming they don't just "disappear" first.

Seriously, this is getting out of hand and I'm glad the bank is finally doing what it needs to do to protect itself. The fallout from this isn't going to be pretty...

[TonyDonuts]

Betty seems to be operating under the, "If I ignore this, it'll go away."

Hey! It's worked for how many years now?

She won't believe it's really happening until the sheriffs come and change the locks.

[taxguykarl]

She won't believe it's really happening until the sheriffs come and change the locks.

And then the fun really begins as MN Revenue, IRS, SBA, Ghel's bank and the remaining employees sort through the remaining assets to get what they have coming....or at least salvage something.