I am a landlord and a building owner and the bank is foreclosing on my property. The bank has asked that the court order my tenants to pay the bank, instead of me, rent. Do I have any defense?
Once the bank takes possession of the property, there is nothing you can do.
THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. Answering this question does not create an attorney-client relationship or otherwise require further consultation.
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Real Estate Attorney
Presuming you still own the property and the lender is exercising its rights under a valid assignment of rents document, the lender has the right to request that the court apply the monthly rents to the monthly payments due to the lender. If you did not sign an assignment of rents or your mortgage does not contain an assignment of rents provision, then you have a valid basis to oppose the lender's request. Additionally, if there are any rents in excess of the amount due the lender, you can request that the court order the excess paid to you.
it would be unlikely that the loan documents signed with the lender did not include an assigment of rents clause. Therefore, the bank has the right to request that the tenants pay them and not you. However, without a review of your loan documents or foreclosure complaint it would be impossible to advise if you have any defenses to this clause.