tenant foreclosure
I own a house & I can't continue to pay the mortgage. My plan is to file for chapter 13, or just let the bank take the house. will i get in trouble because i am still collecting the rent form my tenants?
Re: tenant foreclosure
There may be two answers to this question. The first is that the bank probably does no know that u r renting the place out or that u retain income from the rentals, just that u own the house so as to live. If so while u retain posesseion it is not the bank's business to inquire.how u make money. However because u owe money to the bank because u signed a promisory note and the bank is your creditor, u may be hiding income from that creditor and instead of paying mortgage, u intend to abandon the house. However the bank attempting to prove u r doing this thru a lawsuit is unlikely and the bank has recourse for nonpayment - foreclosure
