Lender Can't Claim Rents During Foreclosure, Fla. Court Says
June 27, 2018
Member Manny Farach
(Fort Lauderdale) was quoted in a Law360 article titled "Lender Can't Claim Rents During Foreclosure, Fla. Court Says" regarding the recent Second District Court of Appeal's Green Emerald Homes LLC v. Residential Credit Opportunities Trust et al.
ruling that a property owner who was not a party to the original mortgage does not have to hand over rents collected from the property to a lender during foreclosure proceedings. Manny suggested that the ruling could prompt lenders' attorneys to revisit their standard mortgage documents and see if their clients are protected in this type of situation. “It’s a good wakeup call for folks to look at their assignment of rents clauses in their mortgages to see if they cover this type of situation,” he said. “They can ask themselves, ‘Am I at risk with my standard clauses in this situation?’” Read the full article here.