Non-Payment/Default Scenario
Most problems start with a lack of communication and a lack of a plan to catch up with a missed payment. It is important to communicate and to stick with any proposed plans for catching up on a missed payment. It is a condition of all contracts that the insurance and taxes be kept current. Not doing so can put the contract in a default status.
The following is what can be expected in a default Scenario without a proper plan or communication:
1) 15 days unpaid: First notice (DC-101) asking to catch up or move out within 15 days.
2) 30 days unpaid and still occupied: Second notice (DC-103 & Summons to Court) The Court will be asked for all expenses (back payments, back taxes, utilities, legal expenses and damages) and a Court ordered eviction will usually be scheduled at this hearing. This hearing will take place within approximately two weeks of filing. Legal expenses continue to grow throughout this process which shall be recovered from the defendant.
3) Court ordered eviction and award to Plaintiff.
4) Small claims suit: In addition to any monetary awards under item number two. Judgment shall be tendered by the Court.
5) Garnishment: Required attendance for this hearing or the court may enter a bench warrant. Garnishee will be required to bring all information the plaintiff requests. For example, SS number, driver’s license number, pay stubs, tax returns, list of assets including tools, vehicles, collections, etc. The Court may award any of the aforementioned to pay the judgment(s). Court shall order garnishment at the end of this hearing.
6) Each step of this process accumulates more legal expense which ultimately falls on the defendant. Most defendants attempt to hide which entails further expenses to the defendant in hiring a service to locate the defendant.
All this information will end up on your credit report.
It is recommend that you seek legal counsel if you end up in this situation.
Peaceful surrender of the property in good condition (along with a plan to pay any expenses owed) can avoid all or most of the processes outlined above.