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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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If I have filled bankcruptcy and included 2 of my rentals in

Resolved Question:

If I have filled bankcruptcy and included 2 of my rentals in it, can I still collect rent or will the mortgage company want it back once they take the house back?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
You are legally entitled to continue to collect the rent for your properties as long as you own them, even if you have included the mortgages for those properties in a Bankruptcy.
You can even continue to collect the rent while those properties are in foreclosure.
Once the properties are sold in a foreclosure proceeding, and the deed and ownership are transferred to a new owner - whether or not the new owner is the bank - that is when you can no longer collect the rent.

I think this is what you wanted to know. If not, please let me know.
Thank you!
Customer: replied 5 years ago.

That does answer my q. I was told that if I rented it then I will have to return all funds from the day my bankcruptcy was discharged. Is that not true?

 

Expert:  cfortunato replied 5 years ago.
Return all funds to whom?
Customer: replied 5 years ago.
The bank that holds the mortgage
Expert:  cfortunato replied 5 years ago.
That is absolutely not true! You have absolutely no obligation to collect rent for the mortgage company, you have absolutely no obligation to give them any of your rent money (or any money) and because of the Bankruptcy, the mortgage company is absolutely forbidden to ask you for any money, including the rent.
Customer: replied 5 years ago.

Thank you so much. As usual you have answered my question to my satisfaction. This is why I signed up for the membership!

 

 

Expert:  cfortunato replied 5 years ago.
You're welcome!
Expert:  cfortunato replied 5 years ago.

Sorry to bother you, but please don't forget to hit the "ACCEPT" button!

Thank you!

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