Who Gets Rent After Foreclosure When Property Management Company Is Involved?
February 3rd, 2010 | 
Author:
When a property is foreclosed and ownership changes, does the property management company contracted by the former owner have any further right to rents or obligations to maintain the property in question?
If possible, please provide a citation for your answer.
Yes, they continue to collect rent, it goes to the bank instead. If you are talking about a house you can continue to rent for 3 months. If you are talking about an apartment with more then 4 units you continue to rent until a new owner is found, the banks are required to keep the property manager on.
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Yes, they continue to collect rent, it goes to the bank instead. If you are talking about a house you can continue to rent for 3 months. If you are talking about an apartment with more then 4 units you continue to rent until a new owner is found, the banks are required to keep the property manager on.
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Continue to pay your rent to the management company as per your lease. You will be notified of any changes.
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The owner’s mortgage probably contains an assignment of rents provision. After foreclosure is filed the rent is paid to the lender or the lender’s agent. I guess the property managment company could be a lender’s agent. Mortgages are of public record so you can go to the courthouse and read the mortgage. In some county’s it’s available on line.
realtor.sailor
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I’m a property manager
Even in a foreclosure, the property is still owned and the owner holds the lease, and the money.
Should the holder of the lease be in breech, like not maintaining per the written lease, you have remedies per the lease. Never simply quit paying. If you are in doubt of who is entitled, consult an attorney who knows property law. She/he will provide good advice. In most cities, there are housing advocates in legal services if you don’t have a lawyer friend who’ll answer this question for free.
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I’m a real estate broker and instructor
The answer to your inquiry depends on whether or not the new owner (the lender) decides to retain the management firm to manage the property. The management contract ends when ownership changes hands. If the lender sees fit to continue with the management company, then nothing changes, except to whom the management company forwards the rent payments. If the lender does not continue the agreement, then the rents go to whomever the lender directs, and the lender becomes responsible for maintenance, etc.
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