Proof of Claim

Georgia, Tennessee, Alabama and North Carolina

Question
What are the ramifications of accepting REO rental income payments while in eviction? Do we assume a landlord/ tenant role?
Answer
Normally, this should NEVER be done without a court order or if the lender has entered into a lease agreement. Otherwise, a new Landlord / Tenant relationship is created that creates additional requirements and time before an eviction can be completed. This is true for all four states for GA, TN, AL & NC.

Question
Can we send the Notice to Quit prior to the expiration of the redemption period? (i.e. send a 30-day Notice to Quit prior redemption expiration, shaving the notice period time off the eviction timeline, etc.).
Answer
Neither GA, TN nor NC has a redemption period applicable to this question. AL has a 1-year right of redemption period, but a 10-day notice to quit is sent before the expiration of the redemption period (usually, right after the foreclosure sale) and if possession is not relinquished within the 10-day period, then the party in possession loses any right of redemption that he or she may have had.

Question
What are the property disposition laws?
Answer
In GA, AL and TN, the personal property is placed at the curb under the supervision of the local sheriff, marshal or constable and should not be touched by the new owner (the mortgage company) thereafter. This is true unless some time after the lockout, the personal property has never been removed and the local government orders the contiguous landowner (the mortgage company) to dispose of the personal property.

The removal of such personal property should not be done without such an order; otherwise, the mortgage company subjects itself to a claim of conversion from the owner of the personal property. In NC, the personal property is usually locked up in the house and the owner of the personal property has 10 days to remove it. If the personal property is not removed within the 10-day period, then the new owner (the mortgage company) can dispose of the property and throw it away or sell it. However, if the personal property were sold, there would have to be an accounting of any money realized above the costs for the storage and sale.

Question
What are the Notice of Abandonment requirements?
Answer
We are unaware of any abandonment notice requirements in any of the four states in which we practice: GA, TN, AL & NC. Instead, an eviction should be completed in all instances where personal property is left behind at the real property, regardless of whether the personal property has been abandoned.