I work for a company that manages apartment complexes for various owners & investors. A few are 'cash distressed'. One set of investors/owners have a property that has a monthy shortage of about $10-15k each month, where expenses exceed revenue. Its been this way for a while, they've been trying to sell, no luck.
They've decided to stop paying the mortgage-which is a large chunk-and work on catching up on past due payables. They will keep up property taxes & insurances. I would assume at some point the lender will foreclose-but what then? Would the residents make payments to the lender directly, or would they have to move out?
They've decided to stop paying the mortgage-which is a large chunk-and work on catching up on past due payables. They will keep up property taxes & insurances. I would assume at some point the lender will foreclose-but what then? Would the residents make payments to the lender directly, or would they have to move out?