How to Collect Rent During a Foreclosure in Florida
Landlords in Florida who are facing foreclosure can still collect rent. Federal law protects the landlord and the tenant during the foreclosure process to ensure the lease agreement remains intact. Both parties must adhere to the lease until the foreclosure is complete, and you maintain the legal right to evict tenants for nonpayment of rent. Contact the department of landlord and tenant relations in your county if you have question or concerns about collecting rent while in foreclosure.
Other People Are Reading
Instructions
-
-
1
Notify the tenant of the pending foreclosure and of his legal obligation to continue paying the rent under the terms of the lease. Although there is no law that requires you to give notice, this courtesy will allow the renter time to plan his next steps and may make him less likely to break the lease and stop making payments.
-
2
Continue to collect the rent on the regular schedule until the house is sold at auction. According to Foreclosures.com, the foreclosure process in Florida can take six to 12 months, as of December 2010. Florida law does not require you to put any of the rent money toward your mortgage. However, until the ownership transfer is complete, you must maintain and repair the property as the lease agreement dictates.
-
-
3
Notify the tenant once the auction is complete and you no longer own the property. Tell her to hold rent payments until the new owner gives her the new address to send payments to. If the tenant mails you a rent payment by mistake, return it promptly.
-
1
