Posted by Daniel M (AL) on March 12, 2003 at 22:19:37:
Actually, as in my later post, all mortgage documents (if the financing was obtained as primary residence financing) require that you live in the property for at least one year. After that time, you can do as you see fit.
As far as the “assignment of rents” language in the mortgage documents, that’s in ALL mortgage documents. It’s just there to protect the lender in the event they have to foreclose on your home and you have a tenant in it. This way they have a legal document assigning the rents to them so they can collect the rent from the person(s) living in the property at that point. Otherwise, the tenants could claim in court that they do not have a written contract with the lender to pay them rent and get away with it. The mortgage policy are not going to show up at your house if you don’t forward every rent check to your lender, nor are they really going to care as long as they get their payments each month. The language will only be applied if they have to foreclose.
Daniel M, Operations Manager
Platinum Mortgage