Posted on: 27th Jun, 2011 01:39 pm
Does this mean that the owner is renting out his property to someone other than the lender?
Assignment of rents pertains to an investment property, whether residential or commercial. The clause is in the loan documents, that if the borrower defaults on payment, the lender has the right to collect and service the rents. Meaning if you default, the lender will "garnish" for lack of better term, your rents to offset the delinquent payments...