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catfish1938
Joined: 09 Dec 2005
Posts: 1
0.17 Dollars($)
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 Posted: Fri Dec 09, 2005 1:03 pm Post subject: What is an assignment of rent and when is it needed? |
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| What does an assignment of rent mean & when would it be used. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1490
Location: MASSACHUSETTS
128.70 Dollars($)
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| Posted: Fri Dec 09, 2005 1:27 pm Post subject: |
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Hi catfish,
Welcome to MortgageFit Forums.
Assignment of rent means redirection of rental income from the mortgage property to the lender in the event of any default.
It indicates the assignment of the rents from the mortgaged property by the borrower as additional security for the debt secured by the lender. It can be included in the mortgage or in a separate document.
A lender is entitled rights to appoint a receiver to enforce assignment of rents when a default occurs.
Hope this information helps. Feel free to ask if you have any more doubts.
God bless you.
For MortgageFit,
Samantha
_________________
Know how to compare lenders with mortgage booklet |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
135.15 Dollars($)
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| Posted: Fri Dec 09, 2005 1:37 pm Post subject: |
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Hi catfish,
It can be treated as an additional security to the lender in case of any default on the borrower's part.
The borrower authorizes the lender to collect the rent on his behalf from the mortgaged property in case of default in payments.
Regards,
Blue |
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James Hogg
Guest
0.10 Dollars($)
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| Posted: Fri Dec 09, 2005 1:49 pm Post subject: |
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Hi catfish,
The Assignment of rent is an agreement which can be treated as a security of a loan. Through this deed the borrower allows the lender to realize the rents till the realization of loans is made in full.
James Hogg |
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Sheila Johnson
Guest
0.10 Dollars($)
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| Posted: Wed Feb 20, 2008 3:19 pm Post subject: Assignment of Rents |
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| If the borrower is in default, has does the lender enforce the assignmeng of rents and begin collecting the rents directly from the property's renter? |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 673
Location: OHIO
117.55 Dollars($)
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| Posted: Thu Feb 21, 2008 12:59 am Post subject: RE: can lender collect rents? |
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Hi Sheila,
Most probably the lender can collect the rents. You need to check the assignment of rent papers as to what are the consequences when a borrower defaults. If the papers don't state anything regarding this situation, then the lender has to seek court permission before collecting the rent.
Regards,
Jessica.
_________________
Home buying made simple with Community booklet |
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Alex12
Guest
0.10 Dollars($)
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| Posted: Thu Feb 21, 2008 1:12 am Post subject: |
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In general, in an assignment of rent agreement, the lender has the right to collect the rents due till the end of the Lease period. The lender starts exercising this right to collect rent only when the borrower defaults.
Upon full payment of debt, the borrower receives a satisfaction or discharge of security instrument executed by the lender. The assignment of rent then becomes null and void. |
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Jamie
Guest
0.10 Dollars($)
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| Posted: Fri Apr 25, 2008 12:28 pm Post subject: assignment of rents |
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| A unsecured debt that I defaulted on has won assignment of rents from my rental property. can this be stopped by filing a chapter 13? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 909
Location: bloomfield, ct
69.06 Dollars($)
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| Posted: Fri Apr 25, 2008 12:43 pm Post subject: |
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jamie, that is a question best asked of a bankruptcy attorney.
_________________
George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044 |
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