Posted on: 29th Jan, 2010 05:31 am
I rent a house that the landlord has let go back to the bank. I was instructed by the bank to make my rental payments to the bank itself.
Question: Since I have no lease agreement with the bank, do I actually owe them? To whom is my financial responsibility, if anyone? I spoke with the bank yesterday about who has my security deposit and they said that that was my original landlords responsibility. So how then am I required to make payments to someone that I have no lease agreement with? What are the ramifications if I cease to pay the bank. I am actively looking for another house to rent. Should I just start saving the monies for that?
Thanks
Question: Since I have no lease agreement with the bank, do I actually owe them? To whom is my financial responsibility, if anyone? I spoke with the bank yesterday about who has my security deposit and they said that that was my original landlords responsibility. So how then am I required to make payments to someone that I have no lease agreement with? What are the ramifications if I cease to pay the bank. I am actively looking for another house to rent. Should I just start saving the monies for that?
Thanks
Hi,
You do not owe the bank anything and you are not legally liable to make payments to them. It seems that the bank it trying to use the rent assignment clause, which they had probably signed with the original owner. The bank will try to recover the monthly mortgage payments from the rent you will be paying.
If you stop making payments, the lender is likely to foreclose on the property. You should start searching for a new house to rent because the lender can foreclose any time. However, as far as the security deposit money is concerned, you need to talk to the owner of the property with whom you signed the agreement. If the security deposit is refundable as per the terms of the agreement, the owner has to give the money back to you.
You do not owe the bank anything and you are not legally liable to make payments to them. It seems that the bank it trying to use the rent assignment clause, which they had probably signed with the original owner. The bank will try to recover the monthly mortgage payments from the rent you will be paying.
If you stop making payments, the lender is likely to foreclose on the property. You should start searching for a new house to rent because the lender can foreclose any time. However, as far as the security deposit money is concerned, you need to talk to the owner of the property with whom you signed the agreement. If the security deposit is refundable as per the terms of the agreement, the owner has to give the money back to you.