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What does it mean for tenants when their landlord has defaulted on their loan?

Posted on: 26th Aug, 2010 10:02 pm
I recently received a DEMAND TO PAY RENT TO PARTY OTHER THAN LANDLORD notice along with a copy of an I-4 FAMILY RIDER and understand this to mean that the property I occupy is in the process of foreclosure due to default. What does this mean for me as a tenant? Does the rent I pay to the lender go toward paying off that debt? And what happens to the security deposit?
Welcome Brenda,

You will have to pay the rent to the lender instead of the landlord. The rent might go towards paying off the balance dues. You've deposited the security amount to the landlord. It will remain with him and not with the lender.
Posted on: 27th Aug, 2010 12:39 am
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