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What does an assignment of rent mean & when would it be used.

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was checking my recorded deeds and found an assignment of rent deed almost 18 months after I purchased the property. I don't recall signing anything and have never rented the property. Can a lender just process a deed or document without my knowledge?

Like | Dislike | Share | Posted: Thu, 05/03/2012 - 15:11 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi katiekakes,

As far as I know, the lender can't just process a deed or document without your knowledge. You can show the document to an attorney and take his opinion in this regard.

Thanks

Like | Dislike | Share | Posted: Thu, 05/03/2012 - 22:44 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If your second forcloses but your first doesnt, can he get an unlawful detainer against you if your still responsible for the first & the first is still dealing only with you?

Like | Dislike | Share | Posted: Mon, 05/14/2012 - 17:37 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Greek!

Welcome to forums!

If the second lender forecloses the property, then he will be liable to pay off the first mortgage lender in full. Normally, the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] lenders don't foreclose the property. Rather, they charge off the loan and assign it to a collection agency who in turn will contact you and try to get back the payments.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 05/16/2012 - 00:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can you rent to own a forclosure? I discovered that I can not get a loan because I do not have 2 years of 1099s. I became an independent contractor for a company that I worked full-time at for the last 10 years and have only been an independent contractor for one year. I really want to purchase this forclosure, however, because I do not have 1099s for the past 2 years, I can't. Can I rent-to-own for the next year on a forclosure. My credit is excellent. Had I known that I needed 1099s for the past 2 years, I would've waited to become an independent contractor. Please advise.

Like | Dislike | Share | Posted: Sun, 06/10/2012 - 14:01 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lissa,

Yes, you can rent to own for one year on the foreclosed property provided the lender and the owner of the property agrees to it. Then you can take out a loan in your name to purchase the property.

Thanks

Like | Dislike | Share | Posted: Mon, 06/11/2012 - 00:37 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for your response! I have a couple more questions....How do I go about doing this? The house that I'm interested in is vacant. The listing shows "bank owned." How is the price of rent determined? Can I secure a purchase price before renting? I don't want to rent the house for a year and then be in a position where the purchase price is too high for me? In these situations, is my rent applied to my purchase price? I have zero knowledge of the real estate field so any help is appreciated! Thank you.

Like | Dislike | Share | Posted: Mon, 06/11/2012 - 10:13 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lissa!

Welcome to forums!

It is the lender who will come up with the price of the rent. The rent amount will be something similar to that charged in the present market. If you go for rent to lease agreement, then the rent will be applied to your purchase price as far as I know. You can even contact a real estate attorney and he will explain this in details to you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 06/11/2012 - 23:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What about the sales tax that would have been collected and paid from the collection of rent if an assignment of rent agreement is implemented?

Like | Dislike | Share | Posted: Tue, 06/26/2012 - 12:15 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi aakinsmith,

You query is unclear. Please post your query in details. In what respect are you speaking about the sales tax?

Like | Dislike | Share | Posted: Wed, 06/27/2012 - 00:04 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Wed, 02/20/2008 - 14:19 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Wed, 02/20/2008 - 23:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Thu, 02/21/2008 - 00:12 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well... I can't point out a document which states that the defaulted landlord can't evict you. But if you're making the payments to the lender, then the landlord will not be able to ask you to leave the property. You should contact the lender and have a word with him in this regard.

Like | Dislike | Share | Posted: Tue, 03/29/2011 - 02:17 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Fri, 04/25/2008 - 12:28 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

jamie, that is a question best asked of a bankruptcy attorney.

Like | Dislike | Share | Posted: Fri, 04/25/2008 - 12:43 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How does the mortgage company begin collecting the rents, do they have to send notice to all tenants and to the defaulted borrower? If there are provisions in the Assignment of Rents document that state no court appointed receiver is needed, how do they begin collecting?

Like | Dislike | Share | Posted: Tue, 09/16/2008 - 07:22 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i think it's pretty clear what will happen to a tenant who refuses to pay - eviction.

Like | Dislike | Share | Posted: Wed, 09/17/2008 - 11:46 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What can happen if the tenant doesn't want to pay the lender after receiving the notice ?

Like | Dislike | Share | Posted: Wed, 09/17/2008 - 10:36 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I guess the mortgage company sends notices to all tenants and the borrower in default.

Like | Dislike | Share | Posted: Wed, 09/17/2008 - 05:10 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi marinq!

The bank will sign the agreement of assignment of rent once you get a tenant for the property.

Thanks.

Like | Dislike | Share | Posted: Fri, 11/14/2008 - 00:20 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

after how many days or month of default the bank start the procedure to do assignment of rent?

Like | Dislike | Share | Posted: Thu, 11/13/2008 - 12:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my brother has a lis pendens on our fathers property what can be done

Like | Dislike | Share | Posted: Tue, 11/18/2008 - 20:42 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tom b.!

There is a document known as "Withdrawl of Notice of Pending Action" which has to be executed by the party who filed the original lis pendens. Then that has to be recorded at the county recorder's office. This will help in removing the pending lawsuit.

Thanks,

Jerry

Like | Dislike | Share | Posted: Wed, 11/19/2008 - 03:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

alender who demands and is paid an eronous amount on the payoff of a recourse loan can whata/

Like | Dislike | Share | Posted: Fri, 12/12/2008 - 20:18 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome supergoalie,

In a recourse loan, a lender can come after you for any excess amount of money you owe. So if you have been late on payments, the lender can come after you and charge you extra amount.

It will be easier for me to answer your query if you can give further details about your situation.

Like | Dislike | Share | Posted: Fri, 12/12/2008 - 23:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What should a tenant do if an assignment and possible foreclosure is happening and they are not informed by any parties involved? If the lease is up adn a month-month has been signed should they just leave or deal with the fact that they are being lied to and the rent is being unjustly increased?

Like | Dislike | Share | Posted: Wed, 12/17/2008 - 19:57 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I meant a month-tomonth has NOT been signed yet.

Like | Dislike | Share | Posted: Wed, 12/17/2008 - 19:58 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi D

Has the property been sold at the auction? As far as I know, the laws regarding the rights of the tenants in case of foreclosure may vary from state to state. You can contact the lender and check with him if he will allow the tenants to stay in the property. If you have an agreement with the landlord, then you can check the clauses as to what you can do if the property forecloses. You can even contact an attorney and check out what steps you can take against the landlord.

Thanks.

Like | Dislike | Share | Posted: Thu, 12/18/2008 - 01:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Someone other than the listed property owner tells me to make out the checks to him because he's the owner. The name on the Summons is NOT his. The Assignment of Rents says that once owner is notified of default that rent should be made out to the Lender or Lenders agents. I have not heard from the bank. Lease has expired. Do I pay rent at all??? please help

Like | Dislike | Share | Posted: Mon, 01/12/2009 - 18:07 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tash,

As the lease has expired, didn't you renew the lease with the landlord? In my opinion. you will have to contact your landlord and check with him first. If you cannot contact the lender, then it will be better if you can contact the lender or the lender's agent. As the lease agreement has expired, then you will not be legally obliged to pay the rent. However, if you want to continue living in the property, then it will be better if you can sign a new lease agreement.

Thanks

Like | Dislike | Share | Posted: Tue, 01/13/2009 - 00:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you so much for answering Niicss. :-) No I didn't renew the lease due to the fact that I was served the summons about the foreclosure. It's along story but in short the area was bought by an investment company that went bad. Money was not going where it should have, due to poor managment. I recieved a letter in the mail telling me to send my rent checks to "the man" who claimed in the letter that is the owner of the house. The papers show another name as the owner. He shows up and ask me to write a check (which i did NOT.) I want to know if I'm doing the right thing by not sending the money. The 1-4 Family Rider (assignment of rents) says that if the owner falls into default that the Lender shall recieve rents from tenant upon written request once the borrower as been notified the owner of the default. Now I am planning on moving as soon as possible and I haven't gotten anything from the bank. If the real owner contacts me, never met him, do I pay him?? I'm sorry for being so long I'm just worried and confused. They don't even have my old lease and they have records that are incorrect about the # of payments that have made.
To make matters worst they assigned a tenant to manage the area and he as no idea about how many houses are in foreclosure. He is still renting houses that are close to auction. One couple recieved a note on their door to leave in 5-7 days, they'd just moved in two months prior. Is that legal?
Again sorry for being to long.......

Like | Dislike | Share | Posted: Tue, 01/13/2009 - 20:18 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tash,

As you haven't signed a new lease agreement with the landlord, I don't think you are liable to pay the rent to the property. But if you intend to stay in the property, then it will be better if you pay off the dues. However, for doing this, you need to draw a new lease agreement. If you do not intend to stay in the property, then it will be better if you could move out of it as soon as possible.

Thanks,

Jerry

Like | Dislike | Share | Posted: Wed, 01/14/2009 - 02:35 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How long does the assignment of rent go on, say the owner gets a notice of default and I am forced to pay the bank directly as a tenant under the assignment of rent. Does the bank continue to accept payment from me for the life of the loan or do they still proceed with foreclosure actions.

Like | Dislike | Share | Posted: Mon, 03/16/2009 - 14:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as I know, the bank will proceed with the foreclosure actions and you will have to leave the property.

Like | Dislike | Share | Posted: Mon, 03/16/2009 - 20:43 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We rent for our business, about 1100 square feet. The building owner is walking away and is going to file bankruptcy. The lender wants my rent check but will not maintain the building. The lender said that maintenace is the owners responsibility. What can I do?

Like | Dislike | Share | Posted: Mon, 03/30/2009 - 11:42 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I should have mentioned I have 2 years left on a lease.

Like | Dislike | Share | Posted: Mon, 03/30/2009 - 11:47 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

I believe you are the tenant and the owner of the building is walking away. The lender now wants you to pay the rent to them. As the owner has walked away, the lender can ask you to pay the rent check to them to recover the loan amount, but this is true that they won't be maintainig the building. It's solely the owner's responsibility. I think it would be worth your while to get the lease contract reviewed by an attorney and see what rights you're entitled to in this situation.

Like | Dislike | Share | Posted: Tue, 03/31/2009 - 04:14 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what does a Substitution of Trustee mean? the house i'm renting is in a pre foreclosure status.

Like | Dislike | Share | Posted: Tue, 04/21/2009 - 08:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what does bond process server mean?

Like | Dislike | Share | Posted: Tue, 04/21/2009 - 09:47 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We are a renter in a business building running a restaruant. The owner is in default on his loan and has been in foreclosure for 2 years. The mortgage company has exercised their Assignment of Rents clause and we are paying them directly. The owner who is in default is now trying to evict us for non payment to him and has threatened to change the locks. What is our recourse?

Like | Dislike | Share | Posted: Tue, 05/05/2009 - 11:32 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

To roman,

The mortgage company could exercise the assignment of rent clause because the owner had signed on such an agreement with the company. Now, when he signed on the agreement, he knew that if he dafaults on the loan the mortgage company would collect the rent on his behalf to recover the loan. Thus, the owner does not have any right to evict you for non-payment to him. You can consult a lawyer regarding this. But I believe he cannot do anything but threaten you to change the locks.

Hi

To kissmytat,

A substitution of trustee is a written document that replaces the current trustee in the deed of trust and appoints a successor trustee. This is validated by a notary public and recorded with the county recorders office. This is filed prior to the filing of a notice of default during the pre-foreclosure process.

Service of process is the process of delivering the summons, complaints and other legal documents to the individual to whom the document is directed. A legal process server is an individual who delivers/serves these legal documents to the individual involved in a court case.

Like | Dislike | Share | Posted: Wed, 05/06/2009 - 03:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Where do I file an assignement of rents and leases in Texas?

Like | Dislike | Share | Posted: Wed, 05/13/2009 - 13:43 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tulsa,

It is often included within the mortgage agreement. The lender can also prepare a separate agreement for the assignment of rent and have it signed by the borrower whereby he authorizes the lender to collect the rent on his behalf if he defaults. So, if it is not included within the current agreement, you should get a separate agreement drafted by an attorney.

Thanks,

Jerry

Like | Dislike | Share | Posted: Thu, 05/14/2009 - 06:01 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm wondering about assignment of rents with the following parameters.

Let's say that the owner is mortgaging a property in new york city listed as a "rent stabilized" building, and the owner provides an assignment of rents and leases to the lender that is entirely false to the known rents and leases currently held by tenants in the building. In fact, the rent stabilization laws prevent this assignment of rents from being lawfully reached for over a century in some cases. The lender does not check the assignment of rents against the actual rents and awards the mortgage to the owner.

Is this mortgage fraud? Or is the assignment of rent agreement some arbitrarily determined sum that would satisfy the mortgage in the case of default?

Like | Dislike | Share | Posted: Thu, 05/21/2009 - 17:32 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

If the owner provides an assignment of rents ans leases that is entirely false, it'll surely be considered as a fraud and legal actions ca be taken agianst the owner. However, as far as I'm aware of, the lender gives the owner of the property an agreement for assignment of rent which the owner has to sign, and this agreement is often included in the mortgage agreement.

Like | Dislike | Share | Posted: Sat, 05/23/2009 - 05:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks Savior70, that's interesting.

It seems like a responsible lender would find out what the actual rents and leases are in the building and base the assignment of rents agreement on them. Is that true?

In the case of default, how can the lender expect to legally nullify existing leases and municipal rent stabilization laws to obtain assignment of rents agreed upon in the mortgage?

By the lender dictating the assignment of rents agreement, wouldn't that imply some law exists to enforce their collection if the owner defaults?

Like | Dislike | Share | Posted: Sun, 05/24/2009 - 06:22 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mr. Snoopy,

You are right in saying a responsible lender would indeed find out the actual rents and leases and base the assignment of rents accordingly. As far as I know, rent stabilization regulations are meant to help tenants by restricting the sharp rise in rents. It does not prevent the assignment of rent. The lender, thus, does not need to nullify the rent stabilization laws. When the owner signs the rent assignment agreement, he gives the lender the legal rights to collect the rents directly from the tenants, in case he defaults on the loan.

Like | Dislike | Share | Posted: Fri, 05/29/2009 - 01:02 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm new to this forum, so forgive me if my question is answered elsewhere. I have the tenants from hell living in a rental house behind me. They have a pit bull that has terrorized us for 3 years (we had to install a newer, more secure fence) and teenage children that have shot our house with pellet guns and harass us when we're in the backyard. We're filing a petition with the city about the dog and the police have advised us to file a restraining order against the family. We were relieved to learn last week that the property is in pre-foreclosure. However, there is an assignment of rents filed with the city. What happens to the tenants after the foreclosure? Will the be evicted after the property is auctioned? And this may be the wrong forum again, but do we have rights to request the mortgage company (Countryside) to evict the tenants. Thanks in advance for the response.

Like | Dislike | Share | Posted: Sat, 06/13/2009 - 20:12 | Post subject:

eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is definitely the wrong forum, however you already contacted the police which is good. Continue to call the police for every small infraction.

Like | Dislike | Share | Posted: Sun, 06/14/2009 - 06:34 | Post subject:

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