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From a lessor perspective what happens to the unguaranteed

 
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From a lessor perspective what happens to the unguaranteed residual value at the end of the lease if the leasee continues to make lease payments or if the leasee stops the lease payments?

 

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Country/State/Province of question: NEW JERSEY USA

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EXTENSIVE RESEARCH IN ACCOUNTING LITERATURE

Submitted: 293 days and 22 hours ago.
Category: Finance
Value: $45
Status: CLOSED
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Expert:  JerrySJD replied 293 days and 21 hours ago.


JerrySJD :

If there was a sale of the property, then there should be an assignment of leases, so the lessor will be whoever owns the lease. The lessor gets the residual value. If the leasee stops making payments, then that is on the lessor too, whether the lessor is the original lessor or a lessor by assignment. The remedies for nonpayment transfer too, plus the remedies available under state law (see eviction).

JerrySJD :

Not usre I got the exact gist of your question, so please let me know if you need some clarification.

 
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