Overextended property investors can lead to foreclosure. It takes a long while for the slow wheels of finance to turn, but eventually, you may finally find yourself on the verge of losing a property for good.The problem is (besides the foreclosure itself), you have tenants 🔥 Let’s say they’re good tenants 😊 They’re current on their rent and you’ve never had a problem with them. You’re concerned for their welfare, but also about protecting yourself.So, what should you do?Surprisingly, the answer is “not much,” even when you’re on the brink of foreclosure. Here’s an overview of your rights and obligations vis a vis your tenants.
There was previously a federal law that protected tenants in foreclosure. However, this law ended December 31, 2014. This state law offers valuable protections to tenants and is currently in force. This information is intended to provide general information regarding renter foreclosure protections and should not be considered as legal advice. You should consult an attorney to discuss your particular situation if your rental property goes into foreclosure. For more information about how you can access legal assistance in your local area, see the Legal Assistance Guide.
You own a house and it is under foreclosure – why not keep it quiet, rent it out and at least collect Rent as long as possible One, prospective tenants may sue you if they don’t know about your financial situation before renting. Lease signing. Another possibility is that you may have signed an assignment of rents in your mortgage documentsIf you’re in foreclosure, any collected rents are your lender’s. In most cases, this makes it a waste of time. You may also be allowed to rent out your property during foreclosure depending on what laws you have in your area. Understanding the rules will help you determine whether you’re within your legal rights. Rent a house Other options are available.
Researchers at lork.nyc, returning to the question of whether a landlord can collect rent from a tenant when the property is in foreclosure, it’s instructive to take a look at what constitutes ownership here in New York. New York is what’s called a title state. This means that a person can own property so long as they are named on the title. In the example of real estate, as long as the deed to a house has a person’s name on it, they have a legally enforceable interest in the house. Same with a car – if a person’s name is on the title as owner, they have a legally enforceable interest in the car. Trayon Sorenson, Xinbei (Taiwan) last updated this 5 days ago