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Company Loan Type APR Est. Pmt.

1-4 Family Rider

Posted on: 02nd Nov, 2009 02:55 am
f a tenant is presented with this 1-4 Family Rider stating that rents are to be paid to the Lender now instead of the Landlord that they've been paying how can the Tenant be sure which way to go? My Landlord just stopped coming by to pick up rent and then the so called Lender of the loan (not bank) came to the property stating that my Landlord hasn't been paying the mortgage or loan and he wants to create a new lease with me.

A 1-4 family rider is a special agreement that many of the lenders include in the deed of trust or mortgage agreements on properties having 1-4 rental units. The rider gives the lender the right to collect rents directly from the tenants, in case the property owner defaults on the loan. It looks like your landlord has not making the mortgage payments to the lender. This is why the lender has now decided to collect the rent from you in order to cut off his losses. I think you should talk with your landlord and find out what exactly has happened. Then, you can start paying the rent to the lender, provided he has shown you the proof that he indeed has got the right to collect the rent from you.
Posted on: 02nd Nov, 2009 05:16 am
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