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If you are a landlord, will you be keeping the property?
If you will be keeping the property and collecting rent, ou can have a lease signed by the tenant,
The trustee of the bankruptcy court, may want to see the lease as well,
as you would have to declare the income you receive from the tenant in your chapter 13 petition,
If you are still the owner of the property, you are entitled to collect rent from the tenants regardless of your chapter 13 filing
The tenant must continue to comply with all lease terms, including making rent payments, or she will be evicted.
I am not sure yet about keeping the property. If I let it go to foreclosure how am I obligated to the lease?
You would be liable for the lease until the property is sold or given to the lender,
That is after the foreclosure,
Your name will be on the deed until a foreclosure, or if you deed over the property to the lender
Would I still be able to collect the rent?
yes, unless the trustee states otherwise,
I'm getting confused who is the trustee?
the trustee meaning the Chapter 13 Court trustee,
he would be the person who would approve your chapter 13 plan, and petition,
as long as you are the owner of the property you can collect rent.
Gotcha' Would you suggest signing the lease now even if I'm in limbo about all this?
You can sign a month to month lease if you wish, a longer term would not be a major issue, it would protect the tenant, if their is a foreclosure, as the lender may have to follow the lease you have with the tenant,
So if you give the tenant a 2 year lease,
the new owner still has to abide by it, in most States
They want a year so that would not be a major issue?
no, it would help them as well, as they can stay a year, even if a new owner is their
If the new owner takes over as landlord, you have the right to stay in your homes until the end of your current lease. On the other hand, if the new owner intends to live in the property or later sells the property to someone who wants to live in the property, you must be given at least 90 days advance notice to move out.
The above is from the Ohio Attorney Generals office, so the tenats lease survives a foreclosure,
Thanks Wall that was helpful!!!
good luck, and if you have any further questions please do not hesitate to ask
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