Posted on: 05th Dec, 2011 10:22 am
My tenants have a lease until March 15th and my property is in foreclosure.
If I opt for the Deed in Lieu, do the tenants maintain the right to reside there until the 15th of March?
If I opt for the Deed in Lieu, do the tenants maintain the right to reside there until the 15th of March?
hello anais von,
if you are a joint owner and didn't sign the mortgage then the bank cannot foreclose on your interest in the property. therefore, you shouldn't sign a deed in lieu of foreclosure. only the borrower in default should sign that deed.
if you want to sell your interest to the bank it should conveyed by a separate deed with you alone as the grantor. you should seek the advice of a real estate attorney who could advise you about your rights and how to make the transfer properly so it doesn't have an effect on your own credit.the lender erred by not having all the fee owners sign the note and mortgage. if only one owner signed then the bank only received that person's interest in the property.
:arrow: :shock:
if you are a joint owner and didn't sign the mortgage then the bank cannot foreclose on your interest in the property. therefore, you shouldn't sign a deed in lieu of foreclosure. only the borrower in default should sign that deed.
if you want to sell your interest to the bank it should conveyed by a separate deed with you alone as the grantor. you should seek the advice of a real estate attorney who could advise you about your rights and how to make the transfer properly so it doesn't have an effect on your own credit.the lender erred by not having all the fee owners sign the note and mortgage. if only one owner signed then the bank only received that person's interest in the property.
:arrow: :shock:
In most states, if the lease is a bona fide lease, then the new owner, or bank owner, must adhere to the contract of the lease. So if the home was foreclosed, or a deed in lieu was accepted in lets say December, and transfer of ownership occurs in January, then the new owner, whether investor, bank or another party, has to full fill the remainder of that year lease.
