Rent Foreclosures
Is it Illegal to Collect rent on a property that is in foreclosure?
I am a landlord for a trailer park. The property is in foreclosure. The property is owned by a development company. There is attorney calling me and telling me I cannot collect rent b/c of the foreclosure or they will take me to jail. Yet my boss tells me to keep collecting… What should I do? Is the attorney trying to bully me into giving the bank money behind my bosses back? Or am I really in danger of going to jail?
Fyi this is in the state of Florida
Can the bank come up with an assignment of rents or a rent execution order? If they can, then you will have to hand over the money to them.
As a landlord, don’t you have an attorney you could speak with?
P.S. There is a document called an assignment that allows a lender to collect rents from the tenants of a borrower in default. There doesn’t need to be an actual foreclosure, just a default, for this to kick in. This document assigns the tenants leases and rents to the lender without exception if the borrow defaults. Most investment property loans have this. If the lender for some reason doesn’t have this, then the landlord gets the money up until an actual foreclosure … unless there is a court order that says otherwise.
Famous Rent to Own Foreclosure.MP4
